NLNG’s ‘missing’ dividends must be recovered

However, reacting to the revelation, the National Publicity Secretary of the ruling party the All Progressives Congress (APC) Alhaji Lai Mohammed, called on the federal government to unravel what happened to the apparent mystery of the missing cash. Investigations by a number of newspapers appeared to show that the accrued dividends for the period between […]

However, reacting to the revelation, the National Publicity Secretary of the ruling party the All Progressives Congress (APC) Alhaji Lai Mohammed, called on the federal government to unravel what happened to the apparent mystery of the missing cash. Investigations by a number of newspapers appeared to show that the accrued dividends for the period between 2009 and 2014 amounted to $4.7 billion. Of this amount, just $128 million was paid into the Federal Government’s Independent Account with the multinational JP Morgan. Not surprisingly, the Nigerian public seems shell-shocked regarding the dizzying figures that are yet to be accounted for by the past administration of Goodluck Jonathan, hence the noticeable lethargy in reacting to yet another episode in the “missing funds” unending saga. But it would be a disservice to the nation, and to the solemn pledge of President Buhari to fight corruption, not to examine every case of malfeasance at any level of any government until a closure is found to each one.
That is why such staggeringly large amounts of money cannot go missing into this hair. They must have been paid into the banking system, therefore they are traceable, unless they are hidden in holes or stacked somewhere in some hideouts.  The repetitive stories of missing funds are an indictment of the external auditors.  It is unacceptable that accounts are audited every year at huge cost, yet only when there is a “forensic” audit at further considerable expense are anomalies discovered. It is hardly a surprise that the funds cannot be located.
The oil and gas industry is notorious for its opaque accounting methods with the national oil company NNPC reputed to operate over 1,000 different banks accounts all over the world.   This financial mess underlines the necessity of domiciling all accounts with the Central Bank of Nigeria, which should be responsible for placing any overseas investments on their behalf.  It is imperative that these accounts, along with the JP Morgan account be closed forthwith. NLNG’s dividends are paid into this account from where they are supposed to be paid into the Federation Account in accordance with the law.  As various audit reports have made clear, some unscrupulous officials of the NNPC divert such funds into commercial banks for benefits to accrue to themselves, fraudulent practice that must be stopped.
Economists and financial experts warn that if the government money in the oil and gas industry is withdrawn from commercial banks, most of them could collapse. While this may indeed be the case, it indicates a major problem in the structure and management of the banking sector. Banks have become over-reliant on government patronage and funds to the detriment of the real economy. The massive profits posted by the commercial banks have little to do with providing banking services to the productive sectors of the economy, and more to do with circulating government funds. 
 The NLNG was reported to have withdrawn $1.2 billion from commercial banks so that it could pay the money into the Central Bank.  As part of the efforts to plug all financial leakages and ensure all payments are made into the federation account, the probe of these “missing” funds should be a matter of top priority for the government. Until the coming of the new administration, no one had concerned themselves with the billions in dividends from NLNG operations. A situation in which funds meant to service the whole nation are controlled and misappropriated by a few individuals is unacceptable.