Nigeria Government quiet over missing N5billion in the Extractive Industry (II)

Abuja, 8 February, 2011: In furtherance of our earlier statement on the over N5 billion trapped oil and gas revenues in consolidated/collapsed banks as revealed by the Nigerian Extractive Industries Transparency Initiative (NEITI) Audit report for 1999-2004, Publish What You Pay (PWYP) Nigeria and Zero Corruption Coalition (ZCC), once again use this medium to reveal to the Nigerian people the identity of the existing banks that merged with some of the banks which at the point of consolidation were in possession of the trapped oil and gas revenue.

These banks despite having been acquired and consolidated have continue to sit on public funds derived from taxes paid by companies operating in the oil and gas sector of the Nigerian economy. While private depositors in these banks have had unhindered access to their funds, it is shocking to know that these consolidated entities continue to sit on public funds amounting to over N5 billion.

Going by the records of consolidated banks provided by CBN records, the following banks have become consolidated into or otherwise acquired by the following existing banks- Broad Bank Nigeria Limited (which the NEITI Audit report 1999-2004 revealed is in possession of N56, 082,173.09), according to CBN’s list of consolidated banks together with other 4 Banks merged under Union Bank as the parent body. African International Bank otherwise known as Afribank International Plc (which according to the NEITI Audit report 1999-2004 is in possession of (N73,157,524.89), merged with Afribank Nigeria Plc under the current Afribank. The Tropical Commercial Bank Ltd (which is reported to be in custody of N213, 073,269.80), merged with other 8 Banks to become the current Unity Bank Plc. The Gateway bank Plc (which is reportedly in possession of N320, 271,726.74), merged with other 3 Banks under the current Intercontinental Bank Plc. The Trans International Bank Ltd, which merged with 4 other Banks to become Spring Bank Plc is in possession of N28, 880,149.00

Three of the seven which were not successful in the consolidation exercise embarked upon by erstwhile Central Bank of Nigeria Governor, Prof. Chukwuma Soludo, were reported to have been closed and liquidated by National Deposit Insurance Corporation (NDIC). These included Citi Express Bank, Gulf Bank Plc, and the Metropolitan Bank Plc which were all reported to have been closed and liquidated on January 16 2006 by the NDIC. While Savanah Bank Plc, Liberty Bank Plc and Societe Generale Bank Plc, had their licences revoked on February 16 2002, respectively, because of court orders which prevented their outright liquidation.

While customers of the liquidated banks have had their deposit paid to them by the Nigerian Deposit Insurance Corporation (NDIC), it is surprising that the same does not apply to the public funds trapped in these liquidated banks.

Publish What You Pay Nigeria Coalition and Zero Corruption Coalition again use this to call on the Nigerian government to immediately take steps towards recovering these public funds supposedly trapped in the consolidate/merged banks as well as the liquidated banks with a view to ensuring their immediate return to public coffers.

The handling of this case by the Nigerian government we believe is a litmus test of its genuine commitment to the Extractive Industries Transparency Initiative (EITI) as well as the implementation of the UN Convention Against Corruption (UNCAC), both being commitments which the Nigerian government freely entered into as a sign of its genuine commitment to ensuring the enthronement of the integrity of its public finances and conduct of public affairs.

In the same vein, we call on the Nigeria Deposit Insurance Corporation (NDIC) to explain to Nigerians how the revenues from oil and gas reported to be trapped in these failed banks were liquidated. Also, we call on the Governor of CBN to publish the receipts from NDIC if there were any such liquidation.

Equally, the PWYP and ZCC demand that the NEITI secretariat should publish an update of the Petroleum Profit Tax and all other petroleum related tax for subsequent years since the NEITI Audit report of 1999-2004 so as to ascertain the current state of affairs in the nation’s oil and gas sector which has been fingered as being enmeshed in corruption and economic sabotage.

Finally, we demand that the EFCC begin investigation on this case and report to Nigerians its findings and prosecute offenders if any, according to the law, while also calling on the National Assembly Committees on Banking and Finance to summon the affected banks and open a public hearing on this matter of national interest.

In conclusion, we call on the Minister of Finance to publish with immediate effect in the public interest the names of banks currently saddled with the responsibility to collect taxes and royalties from operators in the Nigerian extractive sector with a view to promoting accountability and transparency in the management of the nation’s public finances.

SIGNED:
Faith Nwadishi
National Coordinator Publish What You Pay Nigeria
Babatunde Oluajo National Secretary Zero Corruption Coalition