18 Companies Asked To Refund N41.9 billion

Eighteen companies asked to refund over N41.9 billion, have hired a Senior Advocate of Nigeria (SAN), Chief Mike Ozekhome, to lead their legal battle against the House of Representatives and the House ad-hoc Committee on Fuel Subsidy.

The companies are 
The companies are: Mobil Oil Nigeria (N14.934b); Somerset Energy Services (N3.015b); AX Energy Limited (N1.471b);  CAH Resources Association Limited (N1.052b); Crust Energy Limited (N1.192b); Fresh Synergy Oil Limited (N1.417b); Ibafon Oil Limited (N4.687b); Techno Oil (N1.036 b);Oil Bath (N1.019bn); Mut-Hass Petroleum Limited (N1.2bn); Stonebridge Oil Limited (N1.784b); Petrotrade (N1.471b); Lucky Energy (N1.7); Rocky Energy (N1.620b); Lottoj Oil (N1.427b);  Oakfield Synergy Network Limited (N988m); Prudent Energy and Services Limited (N1.360b); Nepal Oil and Gas Service (N2.353b).


Zakari Mohammed (House spokesman) has said the lawmakers will take the oil marketers to the court of public opinion. To ensure transparency, Mohammed said, the House will allow major television stations to relay live the debate of the report of the Farouk Lawan led Committee when it begins its consideration tomorrow.
The House may also bar its members from going to the Offshore Technology Conference (OTC) in Houston, Texas, United States on any marketer’s ticket.
Oil marketers have been bombarding Speaker Aminu Tambuwal and the leadership of the House with requests for visiting appointments, but the lawmakers have shut their doors against them.
A principal officer in the House said all attempts by marketers to use friends and relatives to woo the Speaker and frustrate the debate of the Committee’s report have failed.
The source said: “To stave off pressure, the Speaker decided to honour all social engagements outside Abuja.
“And all his phone calls are limited to key aides, associates and friends. He believes Nigerians must get to the root of the fuel subsidy scandal. Some of the oil marketers, who have relocated to Abuja since Friday, have not had access to the Speaker.
“And the Speaker’s aides and those of other principal officers have been cautioned against any act that could jeopardise the debate.”
It was also learnt that some oil marketers are offering some members of the House sponsorship to the OTC Summit in Houston.
The trip is one of the strategies being adopted to scuttle the House Ad Hoc Committee’s Report, it is believed.
The principal officer, who spoke in confidence, said: “Although the Houston Conference is an annual event, we may bar members from being sponsored by any oil marketer.
“If it is unavoidable, the House may pick the bill of members.”
Mohammed, who is the Chairman of the House Committee on Media, confirmed the pressure on the leadership.
He said: “Yes, the Speaker and the House leadership have been undergoing tremendous pressure from oil marketers. But we will not compromise with anybody.
“But the Speaker, being a man of his words, will not allow anyone to influence him. They (these oil marketers) will meet brickwalls, if they make any advance.
“As for the House, the House leadership will ensure that the recommendations are debated and implemented. We have decided to transmit our debate live on television stations as from Tuesday so that Nigerians will judge whether the Ad Hoc Committee has done a good job or not.”
The 18 firms threatening to go to court over the report were asked to refund N41, 936,140,005.31.
The report said: “The following companies (18) that participated in the Scheme refused to appear before the committee and never submitted the required documents as was repeatedly announced during the hearing are to refund the various sums against their names.
“It is believed that these companies deliberately refused to appear because they had something to hide. The relevant anti-corruption agencies should ensure full recovery.”


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Exxon arm owes Nigeria $95 mln in subsidy

Nigeria's anti-corruption agency should recover 14.93 billion naira in fuel subsidy payments received by Exxon Mobil's Nigerian downstream subsidiary, a parliamentary investigation this week said.

The national assembly's fuel subsidy report said 18 firms, including Mobil Oil Nigeria, never produced the documents that would prove the subsidy funds they received from government tallied with the amount of fuel they imported.

Mobil Oil's bill was three times larger than the next biggest amount owing and more than 10 times bigger than the majority of firms named, the report said. The other companies were non-listed Nigeria-based downstream firms.

"These companies deliberately refused to appear because they had something to hide," the report said, listing the amount Nigeria's anti-corruption agency should recover from each firm.

Mobil Oil public affairs manager Akin Fatunke said the firm was never officially invited to the parliamentary hearing. Exxon owns 60 percent of the Nigerian downstream arm and the rest is held by shareholders.

There are several investigations and audits going on into the fuel subsidy, including by the anti-corruption agency. Mobil Oil said it had duly complied with the hearing by the Economic and Financial Crimes Commission because they got an invitation.

Nigeria tried in vain to end gasoline subsidies on January 1, but a week of public protests forced the government to partially re-instate the payments, seen as a massive drain on its budget.

The protests prompted a wave of audits and probes into why fuel subsidy costs were spiraling out of control.

The central bank governor, lawmakers and government ministers said Nigeria was spending billions of dollars more on fuel subsidies than was in the budget, and buying billions of litres more than were actually consumed.

Part of the probe was to uncover companies which collected subsidy payments but never imported fuel or sold the fuel to neighbouring countries where fuel prices are not subsidised and therefore much higher than in Nigeria.

Investigators looking into the subsidy found importers were being paid for 59 million litres a day, while the country only consumes 35 million.

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