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FINANCE MINISTER CANCELS OIL/GAS PRE-SHIPMENT TENDER EXERCISE

The Minister of Finance, Mrs Kemi Adeosun has ordered the immediate cancellation of the tendering process for the engagement of Pre-Shipment Inspection and Monitoring Agents for Oil and Gas. The decision was necessitated by the receipt of numerous complaints and a petition regarding alleged irregularities in the process.

In June 2015, President Muhammadu Buhari mandated the Federal Ministry of Finance, under the then Permanent Secretary, Mrs. Anastasia Nwoabia, to commence the process of engaging Pre-Shipment Inspection and Monitoring Agents. Upon the approval of the Bureau of Public Procurement, a selective tendering process was initiated under which 65 companies were selected and invited to bid.

However, since the inception of the process, numerous complaints were sent to the Federal Ministry of Finance, suggesting that the method by which the 65 companies were selected was faulty and lacked transparency. Additionally, a formal petition was received by the Bureau of Public Procurement making specific allegations about the process. Under Public Procurement rules, the receipt of a formal petition requires a suspension of the tendering process to allow an investigation. However, in this instance, the Minister has taken the decision to cancel.

The Minister, Mrs. Kemi Adeosun said that, “the sheer volume of complaints and the wide range of sources they emanated from had raised a sufficient level of concern around the process to warrant a full cancellation rather than a suspension”. She further stated that, “This administration stands for transparency and accountability and it is therefore important that all procurement and tendering exercises must be undertaken in accordance with best practices”.

Pre-Shipment Inspection of Oil and Gas Exports commenced in 2015 and requires a Clean Certificate of Inspection to be issued, confirming the volume and the value of all exports. The programme is believed to have enhanced government revenues by preventing misstatement and understatement by exporters.

The Ministry of Finance stated that it was in consultation with the Bureau of Public Procurement to commence a new process and to ensure interim arrangements for service provision. The Ministry further stated that details of the new process would be communicated shortly.

FG, STATES AND LGs SHARE N418.452 BILLION FOR MAY 2015

The three tiers of government in the country have shared a total of N418.452 billion federal revenue for the month of May 2015. 

A communiqué issued by the Federation Account Allocation Committee (FAAC) indicate that the Federal government got N151.805 billion (52.68%), the States got N76.998 billion (26.72%) and the Local Governments got N59.362 billion (20.60%). The oil producing States got N29.071 billion as 13% derivation revenue. 

For the month of May 2015, the gross revenue available from VAT was N56.821 billion. This was N18.339 billion lower than the N75.160 billion realised in the preceding month. 

The distributable statutory revenue for May was N324.061 billion. A total of N6.330 billion was refunded by the NNPC and N31.240billion was realised as exchange rate gain. All these, together with the revenue from VAT made up the total distributable revenue for the month. 

According to the communiqué, gross revenue of N324.061 billion was received for the month, which was N41.999 billion higher than the N282.062 billion received in April. The country recorded a drop of 160,000 bopd in April as a result of delays in issuance of third quarter 2015 Export Permit. Furthermore, shutdowns and shut-in of trunks and pipelines at Terminals impacted negatively on crude oil revenue.

The communiqué confirmed that an increase in the average price of crude oil from $56.04m in March 2015 to $59.88m in April 2015 brought about $19.70m gain in revenue. Meanwhile, non-oil revenue are expected to perform better in the later part of the year due to some mechanism put in place by the Federal Inland Revenue Service (FIRS). 

FG APPROVES IMMEDIATE PAYMENT OF N407 BILLION TO OIL MARKETERS TO END FUEL SCARCITY

The Minister of Finance, Mrs. Kemi Adeosun has confirmed payment of N407,076,805,386.30 for subsidy claims to oil marketers so as to end the lingering fuel situation.

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