{"id":20796,"date":"2019-09-19T19:13:25","date_gmt":"2019-09-19T19:13:25","guid":{"rendered":"https:\/\/everyday.ng\/?p=20796"},"modified":"2019-09-19T19:13:25","modified_gmt":"2019-09-19T19:13:25","slug":"nec-hears-how-ghana-others-rip-off-nigeria","status":"publish","type":"post","link":"https:\/\/everyday.ng\/?p=20796","title":{"rendered":"NEC hears how Ghana, others rip off Nigeria"},"content":{"rendered":"\n

\u25a0 How NEC and Economic Advisory Council (EAC) will synergise, by Osinbajo<\/strong>

Nigeria has lost over N472 billion in oil revenue in six months, and the figure may climb to nearly a trillion by year’s end. Worse, neighbouring Ghana, that will not stop denigrating and persecuting Nigeria and Nigerians, along with others, are complicit in this huge revenue loss.

According to an ad-hoc committee headed by Gov. Godwin Obaseki of Edo State, set up by the National Economic Council (NEC), chaired by Vice President Yemi Osinbajo, the losses were through the smuggling of crude oil.

A comprehensive report to Thursday’s NEC meeting of Governors stated NNPC reported a loss of 22.64 million barrel of crude oil valued at USD 1.35 billion for 2019 half-year; and possibly USD 2.7 billion for a full year at a global oil price of USD 60 per barrel, if not checked.

“The losses were recorded on the following pipeline:
a.\u00a0\u00a0\u00a0Nembe Creek Trunk Line (NCTL) –\u00a09.2 million barrels
b.\u00a0\u00a0Trans Niger Pipeline (TNP)\u00a0–\u00a08.6 million barrels
c.\u00a0\u00a0\u00a0Trans Forcados Pipeline (TFP)\u00a0– 3.96 million barrels
d.\u00a0\u00a0Trans Escravos Pipeline (TSEP) –\u00a0877 Thousand barrels,” the report said.

It blamed the losses on the absence of governance structure for the pipeline such that no one is held accountable whenever there is a breach on the lines.

Other reasons are:- Slow and inadequate prosecution of oil thieves, despite numerous arrests and seizures.

– Absence of petroleum products filling stations in most oil producing Communities that make them resort to illegal bunkering and refining

– Huge internal and external markets of stolen crude oil which include Ghana as well as some neighboring countries.

The Obaseki committee recommended the restructuring the maintenance of all pipelines as a way of tackling the perpetrators of oil theft as well as a legal framework that will ensure every criminal is duly prosecuted, imprisoned and all assets confiscated.

Other recommendations are:

\u25aa\u00a0the setting up Special Courts to try offenders, set-up of Legal Task Force to coordinate the prosecution of arrested offenders as well as train special judges to handle cases of oil theft.

\u25aa NNPC to engage the National Intelligence Agency (NIA) to identify markets for the stolen products.

\u25aa Governors of the oil producing states to step up actions to develop\u00a0their communities with their 13% derivation allocation as well as implement programmes that will be impactful to make life easy for the people. They should also create employment opportunities for the youths in these regions.

\u25aa Propose a funding arrangement to be jointly funded by the Federal, State Governments and oil companies.


Meanwhile, in response to a request for clarification by members of the National Economic Council (NEC) regarding its relationship with the newly announced Economic Advisory Council, EAC, Vice President Yemi Osinbajo, SAN, has said both councils are for the benefit of the President.

Prof. Osinbajo spoke at the 97th\u00a0NEC meeting today at the Council Chambers.
\u201cIf NEC wants to be briefed regularly by the Economic Advisory Council, EAC, we will request the President to do that,\u201d the VP explained to the Council observing that such interaction will promote synergy.

Below are detailed highlights of NEC deliberations as released from the Office of the Vice President:

NEC (5TH\u00a0IN 2019) 97TH\u00a0NEC MEETING \u2013 THURSDAY,\u00a019TH\u00a0September, 2019\u00a0\u00a0\u00a0

UPDATE ON THE NATIONAL LIVESTOCK TRANSFORMATION PLAN\u00a0BY THE GOVERNOR OF EBONYI STATE, DAVE UMAHI, CHAIRMAN OF\u00a0NEC TECHNICAL COMMITTEE ON THE NLTP

The chairman reminded NEC that the Committee was to address the\u00a0
Farmer\/herder crisis

The Committee presented a National Livestock Transformation Plan 2019 \u2013 2028.

The Plan is not targeted at only cows but a holistic strategy to address animal husbandry.

The Plan has six pillars:

\u25aaConflict Resolution

\u25aaJustice and Peace

\u25aaHumanitarian Relief and Early Recovery

\u25aaHuman Capital Development

\u25aaCross cutting issues

\u25aaEconomic Development

The Committee proposed an implementation guideline to guide FG and States

N100 billion has been budgeted to support the project.

FG is to contribute 80% in grant to support States, while States will contribute land, project implementation structure, personnel and 20% cost of the project.

Council Resolution

Need to look at the Trans-Human West Africa Regional Protocol \u2013 because the country cannot allow such movement of cattles without registering and monitoring them

Council emphasised\u00a0the need to establish the fact that NLTP is a creation of NEC and State Governors\u00a0\u00a0and is completely distinct from RUGA.

NEC adopted the National Livestock Transformation Plan on January 18, 2019.\u00a0\u00a0It is a creation of the National Economic Council.

States will determine, whether or not they are willing to participate, as FG did not impose this plan.\u00a0\u00a0Participation remains\u00a0voluntary.

The role of the FG is to coordinate, monitor and help implement the plan.

\u00a0UPDATE ON ACCOUNT

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Honourable Minister of State for Budget and National Planning reported to Council that balances in the underlisted accounts as at 17th\u00a0September, 2019 are as follows:

EXCESS CRUDE ACCOUNT (ECA)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0= USD\u00a0274, 583, 856 .78

STABILIZATION ACCOUNT\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 =\u00a0N23, 796, 349,487.76

DEV. NATURAL RES. ACCT FUND\u00a0 \u00a0 \u00a0 \u00a0 = N105, 135, 613, 817.27

UPDATE ON BUDGET SUPPORT LOAN FACILITY

The Honourable Minister of State also briefed on the Budget Support Facility that State Governments are expected to start servicing from September 2019; and repayment is over 240 months.

Council resolved that Governors should meet with the Ministry of Finance and Central Bank of Nigeria to sort out the details of repayment modalities and the Vice President will ensure same and ensure the meeting between the Governors, CBN and Finance Ministry in order to facilitate the speedy resolution of the matter.

UPDATE ON THE PRESIDENTIAL ENABLING BUSINESS ENVIRONMENT COUNCIL (PEBEC)

The Secretary of the Presidential Enabling Business Environment Council (PEBEC) Dr. Jumoke Oduwole gave an update on building an Enabling Business Environment. She informed Council that:

\u25aaThere is currently a reform wave in African countries, as contained in the African Development Bank (AFDB) Economic Outlook Report released in January, 2019.

\u00a0\u25aaThat in the 2019 World Bank ease of doing business ranking, Nigeria is ranked 146 with Micro Small and Medium Enterprises (MSMEs) making up to 90% of Business in Nigeria.

\u25aaThat the Economic Recovery Growth Plan (ERGP) 2017-2020, which has three broad objectives; which includes restoring growth; Investing in people and Building a competitive economy has positioned Nigeria in the path of building a competitive economy.

\u25aaThat PEBEC is mandated to make Nigeria\u2019s ranking to top 100 in the 2020 World Bank Doing Business index.

\u25aa Achieve the required political buy-in across all arms and levels of government.

Furthermore, she told NEC that PEBEC has in the past 3 years achieved the following:

\u25aaMoved up 24 places in the World Bank Ease of Doing Business ranking

\u25aa32 Nigerian states, led by Kaduna, Enugu, Abia, Lagos and Anambra states have improved in their ease of doing business environment.

\u25aaAn independent EODB survey adjudged Nigeria\u2019s reforms as impactful in terms of reduction in time, cost and procedures of doing business.

REPORT OF THE AD-HOC\n COMMITTEE ON CRUDE OIL THEFT,
PREVENTION AND CONTROL PRESENTED BY GOVERNOR EDO STATE

The 13 member Ad-Hoc Committee which is chaired by the Governor of Edo State, Mr. Godwin Obaseki, in their report, told the Council that the Committ\nee is constituted to address:
\u00a0i.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Impact of vandalism, oil theft and illegal bunkering on oil production;
\u00a0ii.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Effectiveness of the activities of the JTF and other Security Agencies
\u00a0iii.\u00a0 \u00a0 Consider the set-up of Special Courts to prosecute offenders, among others.

The Terms of Reference of the Ad-Hoc Committee is to include:
\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0restoring and sustaining the three major pipelines;
\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0assessing the challenges and draw up a roadmap to guide further actions towards finding a lasting solution to the problem;
\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0co-opt individual or corporate body to facilitate the work of the Committee and update the Council regularly.
– The Ad-Hoc Committee in its findings discovered that there were losses. NNPC reported a loss of 22.64 million barrel of crude oil valued at USD 1.35 billion for 2019 half-year; and possibly USD 2.7 billion for a full year at a global oil price of USD 60 per barrel, if not checked.
– The losses were recorded on the following pipeline:
a.\u00a0\u00a0\u00a0Nembe Creek Trunk Line (NCTL) –\u00a09.2 million barrels
b.\u00a0\u00a0Trans Niger Pipeline (TNP)\u00a0–\u00a08.6 million barrels
c.\u00a0\u00a0\u00a0Trans Forcados Pipeline (TFP)\u00a0– 3.96 million barrels
d.\u00a0\u00a0Trans Escravos Pipeline (TSEP) –\u00a0877 Thousand barrels.

– Absence of governance structure for the pipeline such that no one is held accountable whenever there is a breach on the lines.
– Slow and inadequate prosecution of oil thieves, despite numerous arrests and seizures.
– Absence of petroleum products filling stations in most of its oil producing Communities that make them resort to illegal bunkering and refining
– Huge internal and external markets of stolen crude oil which include Ghana as well as some neighboring countries.

The Committee made the following recommendations to the Council:
i.\u00a0 The need to restructure the maintenance of all pipelines as a way of tackling the perpetrators of oil theft.\u00a0
ii.\u00a0\u00a0Have a legal framework that will ensure every criminal is duly prosecuted, imprisoned and all assets confiscated.
\u00a0iii.\u00a0Setting up Special Courts to try offenders, set-up of Legal Task Force to coordinate the prosecution of arrested offenders as well as train special judges to handle cases of oil theft.
iv.\u00a0 NNPC to engage the National Intelligence Agency (NIA) to identify markets for the stolen products.
v.\u00a0Governors of the oil producing states to step up actions to develop\u00a0their communities with their 13% derivation allocation as well as implement programmes that will be impactful to make life easy for the people. They should also create employment opportunities for the youths in these regions.
vi. Propose a funding arrangement to be jointly funded by the Federal, State Governments and oil companies.

Council Resolution

Council resolved as follows:

Recommendations given will be presented to the President who is also the Minister of Petroleum for the final decision and implementation.

The Chairman of Council also asked NNPC to make a presentation to the Council on the state of PMS and smuggling across the borders.

ANY OTHER BUSINESS

Governors requested clarification from the Council Chairman on the relationship between NEC and the newly formed Economic Advisory Council.\u00a0\u00a0The Vice President explained that both Councils are advisory for the benefit of the President, while NEC is established by the Constitution.\u00a0\u00a0The Vice President added that NEC could be briefed regularly on the activities of the newly found EAC with the permission of the President.

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\u25a0 How NEC and Economic Advisory Council (EAC) will synergise, by Osinbajo Nigeria has lost over N472 billion in oil revenue in six months, and the figure may climb to nearly a trillion by year’s end. Worse, neighbouring Ghana, that will not stop denigrating and persecuting Nigeria and Nigerians, along with others, are complicit in […]<\/p>\n","protected":false},"author":7,"featured_media":14935,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,5777,7],"tags":[],"class_list":["post-20796","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","category-features","category-news"],"_links":{"self":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts\/20796","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20796"}],"version-history":[{"count":0,"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts\/20796\/revisions"}],"wp:attachment":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20796"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20796"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20796"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}