Nigeria Senate Digs Into $679m Unremitted Revenue From Ports Concession

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The Senate has uncovered how the   Bureau of Public Enterprise (BPE) failed to remit $679.4 million realized from the concession of various ports to 23 companies.

The Senate Committee on Public Accounts is carrying out the probe sequel to the Auditor General for the Federation report which  the Committee is  considering.

According to the query by Office of Auditor General for the Federation , OAuGF, there was no evidence to show that the $679 million was collected as at when due and remitted to Consolidated Revenue Fund.

In a written response,  the BPE explained that the concession transactions were done in 2005 and the concession agreement executed clearly show that BPE was only a confirming party while the primary parties to the concessions is the Nigerian Port Authority (NPA).

Part of the BPE response stated: “Revenue accruing on the Ports concession have, beyond 2008, been paid directly to “Landlord”, NPA and not the BPE as the OAuGF report appears to allege. We are therefore unaware of the $679.4 million.”

The AuGF query read, “Twenty-three (23) companies were granted concessional rent of various Ports under Nigerian Ports Authority for ten years and above with associated yearly rent of $679,403,172.00 (Six hundred and seventy-nine million, four hundred and three thousand one hundred and seventy-two dollars) payable to NPA as at 31st December, 2016.

“There is no evidence to show that the sum of $679,403,172.00 was collected as at when due and remitted to the Consolidated Revenue Fund.

“This has been communicated to the Bureau vide letter with reference No. OAuGF/RESAD/05/2016/07 dated 19th April, 2018. No response has been received from the Bureau.

“Unremitted funds may be misapplied by the bureau. Also, it may lead to diversion of funds to other uses. The Director-General is required to show evidence that the sum of $679,403,172.00  was collected and remitted to the appropriate authority.”

2022 Budget Highlights

Projected Expenditure N17.13trn

Expected Revenue N10.74trn

Total Deficit N6.39trn  (3.46% of GDP)

Non-debt Recurrent Expenditure N6.91trn

Capital Expenditure N5.96trn

Debt Service N3.61trn (21% of total              expenditure, 34% of revenue)

Budget’s key Assumptions

Oil Production 1.88 mbpd

Oil Price Benchmark $62 pbl

Exchange Rate N410.15/$1

Inflation Rate 13 per cent

Nominal Consumption N119.28 trn

Nominal Domestic Product N184.38 trn

GDP Growth Rate 4.20 per cent

– Parrot

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