…As Nigeria signs $1b Intra-Africa trade deal with Afreximbank***
Nigeria indebtedness to International Oil Companies (IOCs) stood at $5.1 billion, the Nigerian National Petroleum Corporation (NNPC) told the Senate yesterday.
The $5.1 billion, according to the Corporation, was accumulated from the Joint Venture Cash Call (JVC) business arrangement the country has with IOCs on oil exploration.
But the NNPC denied allegation of mismanagement of $3.2 billion said to have been withdrawn from the Nigerian Liquefied Natural Gas (NLNG) account between 2015 till date.
The Chief Financial Officer (CFO) of NNPC, Isiaka Abdulrasaq, who appeared before the Senate Committee on Gas explained how the debt was incurred.
Abdulrasaq told the panel that the JVC is a business arrangement between the Federal Government and the IOCs, explaining that Nigeria controls 60 per cent of the business venture and the IOCs the remaining 40 per cent.
He NNPC official said: “The problem, however is that before this government came on board in 2015, Nigeria which holds 60 per cent of shares in the joint business, for many years did not contribute its own required capital into it.”
Nigeria, he said, was “only collecting its equity share inform of revenues which made the country as at 2015, to have $6.8 billion unpaid capital into the venture.”
He further explained that “the present government in 2016, succeeded in getting 35 per cent discount from the unpaid capital amounting to $1.9 billion from the unpaid capital, making the country to still owe the IOCs $5.1 billion outstanding.”
On the alleged $3.2 billion reportedly withdrawn from the NLNG account by the NNPC within the last three years, the CFO insisted that there was no mismanagement in any of the withdrawals made.
He noted that based on available records with NNPC, only 13 withdrawals were made from the account amounting to $1.2 billion.
The official said that more than seven IOCs dealing with the NNPC have expressed concern about the continuity of their business operations as a result of bogus figures being bandied about withdrawals from the NLNG account.
Chairman of the committee, Senator Albert Bassey Akpan, asked the NNPC CFO to submit approving documents for all the withdrawals by Tuesday next week.
Akpan said: “We are not saying any money has been stolen. What we are doing is clarifying the processes of expenditures made from the account with a view to making management of the account more transparent and beneficial to Nigerians.”
In the meantime, Nigeria yesterday signed a $1billion Memorandum of Understanding (MoU) with the Africa Export-Import Bank (Afreximbank) to promote trade.
The trade facilitation instrument will be managed by the Nigeria-Africa Trade and Investment Promotion Programme (NATIPP), AFREXIM, the Nigerian Export Promotion Council (NEPC), and the Nigerian Export Import Bank (NEXIM).
Afreximbank Chairman Dr. Benedict Oramah, NEPC Executive Director Segun Awolowo, NEXIM Managing Director Abubakar A. Bello and Intra-African Trade Initiative Managing Director Mrs. Kanayo Awani signed the agreement.
The event, which was held at the IATF Conference Centre, was flagged off by the Vice President, Prof. Yemi Osinbajo, who flew into Cairo, the Egyptian capital yesterday morning to unveil Nigeria’s Day at the first ongoing Intra-African Trade Fair.
He said Intra-African trade remained a veritable tool to develop the continent in the light of its growing population.
The Vice President said Nigeria placed a great premium on the continent’s economic integration, adding: “We recognise trade as a veritable tool towards Africa becoming an industrialised, prosperous and peaceful continent, where we generate enough opportunities to accommodate the growing numbers of our people.
“The number entering the job market yearly in Africa is daunting and it is clear that increased intra –Africa trade is one of the surest ways of creating the jobs that are desperately needed. Therefore, the IATF, bringing together business communities, innovators and creators , both in merchandise and service industries in 55 African countries, is a remarkable achievement in itself to increase trade in Nigeria,” and across the continent.
“Today, we have come to the IATF, with a delegation of policy makers, services and market operators, who have an array of goods and services that are as rich and diverse as the people of our great nation,” he said.
Osinbajo said Nigeria has continued to record growth with phenomenal strides in the Information Technology field. He said: “ In the second quarter report of our Bureau of Statistics (NBS), services contributed approximately 54 per cent to the GDP, with Information and Communication being the drivers of growth. Clearly, one of the remarkable developments in Nigeria’s economic growth story, is the phenomenal growth and depth of technology and innovation, with hundreds of new companies jostling for primacy in this fast and growing economic space.” “It is estimated that the digital economy in Nigeria will be worth $88 billion dollars, creating about three million jobs in 2021.
“So, today, we have come with some of our best digital entrepreneurs with their products to start conversation around cooperation and partnerships that will jump-start the continental economy, to create our own corporations, such as Facebook, Google, among others.”
Osinbajo spoke about Nigeria’s entertainment industry “setting the pace”, stressing that Nollywood is number three in the global rating ladder. “The Africa –wide popularity of Nollywood pointedly demonstrates that our stories are the same, our hopes and aspirations are identical, and so our sense of fairness and justice,” the Vice President said.
He invited the audience to savour Nigeria’s cultural event slated for the evening (last night) where a variety of Nigeria’s cuisine and Nigeria’s artistes, including 2 face Idibia, D’banj, Femi Kuti and the Kalakuta Queens, were billed to perform.
Osinbajo said Nigeria’s presence at the IATF will not be complete without the strong showing of the fashion industry, which he acclaimed , is internationally recognized. Over 40 exhibitors are featuring in that sector alone, with an array of products – clothes, bags, hats and several other designs.
At the session were Minister of Trade, Industry and Investment Dr. Okechukwu Enelamah, Abia and Kebbi Governors Dr. Okezie Ikpeazu and Mohammed Bagudu Abubakar, Prof. Pat Utomi, Chief Trade Negotiator, Nigeria Office for Trade Organisation, Chiedu Osakwe and many exhibitors, including the executive Director of SystemSpecs, ‘Deremi Atanda.
The Nation
