The Real Subsidies Are Not For The Poor, But The Rich, By Femi Falana

3. Outstanding royalties of $62 billion

In campaigning for the amendment of the Deep Offshore and Inland Basin Production Sharing Contracts Act, I requested the Federal Government to collect outstanding royalties payable by the International Oil Companies under the Act. The Federal Government admitted that the country had lost a whopping sum of $60 billion. But my demand for the collection of the huge fund was ignored.

The governments of Rivers, Akwa Ibom and Bayelsa states then approached the Supreme Court which on October 20, 2018 ordered the Federal Government to collect the royalties for the past 18 years. The Federal Government confirmed that the outstanding royalty withheld by the IOCs is $62 billion but has refused to collect it.

4. FG denied revenue of $500 million by a group of corrupt public officers

The international Cargo Tracking Note Scheme to protect international shipping and prevent the movement of dangerous cargo and arms shipments was introduced into Nigeria in 2010 via an agreement between the Nigerian Port Authority and TPMS, a private company. Barely a year later, the agreement was suspended. When our attention was drawn to the illegal suspension of the Cargo Tracking Note system, we protested and the suspension was lifted on May 28, 2015 only to be suspended again in 2016.

In 2022, President Buhari issued an executive order which authorised a company to operate the Cargo Tracking Note. But five companies sponsored by top government functionaries overruled the President and hijacked the contract. The company that won the contract has since sued the Federal Government at the Federal High Court. Meanwhile, Nigeria has lost at least $500 million while the security of the nation has been compromised by a bunch of corrupt public officers.

5. Sale of public assets and enterprises

Successive regimes have been selling assets and enterprises owned by the Federal Government to members of the ruling class in the name of privatisation. The buyers turned round to engage in  asset stripping. According to the Bureau of Public Enterprises, between 2004 and 2002, the Federal Government sold 142 public enterprises to members of the ruling class. The 10 per cent shares reserved for the staff of every privatised enterprise have been cornered by the so called “core investors” contrary to the provision of section 5(3) òf the Privatization and Commercialisation Act.

6. $7 billion fixed in 14 banks

Sometime in 2006, the CBN yanked off $7 billion from the nation’s foreign reserves and fixed it in 14 commercial banks in Nigeria. The deposit and the accrued interests were not recovered from the banks. When I reported the matter to one of the anti-graft agencies, the CBN claimed that it had forgiven “the forbearance”.