HomeBusinessN135bn Loan: Senate panel threatens Dangote Refinery, 13 oil firms, others

N135bn Loan: Senate panel threatens Dangote Refinery, 13 oil firms, others


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On Thursday, a Senate committee threatened to report some oil and gas companies in the country to the Economic and Financial Crimes Commission (EFCC) if they were found guilty of misappropriating a N135 billion intervention loan from the Central Bank of Nigeria (CBN).

The threat was issued by Agom Jarigbe, Chairman of the Senate Committee on Gas Resources, when the beneficiary companies appeared before the committee to explain how they used the loan, Premium Times report.

The N135 billion loan was made available to 15 oil and gas companies through the CBN’s Nigeria Gas Expansion Programme intervention fund.

Mr. Jarigbe stated that the intervention fund loaned NIPCO Gas Ltd N25 billion, NIPCO Plc N5 billion, Hyde Energy Ltd N2 billion, and Lee Engineering and Construction Company N15 billion.

Pinnacle Oil And Gas Fze (N10 billion), Transit Gas Limited (N8 billion), Amalgamated Oil Company Nig Ltd (N5 billion), and Gas Nexus Ltd (N10 billion) are the other companies.

N4.3 billion was awarded to First Modular Gas Systems Limited, N1 billion to Novagas Limited, N10 billion to Greenville Liquified Natural Gas Company, and N8 billion to AP LPG Limited.

Delta State Government (N20 billion), Dangote Oil Refinery (N5 billion), and Mob Integrated Services Limited (N2.5 billion).

Mr. Jarigbe, the senator representing Cross River North, stated that members of his committee discovered that some of the companies did not use the funds for the intended purpose.

He stated that the Senate would not hesitate to involve anti-corruption agencies in order to recover the funds from any of the companies that did not use the loan wisely.

“The observation of the committee is that there are inconsistencies in the process and the committee may not hesitate to involve the Economic and Financial Crimes Commission to recover the funds” he said.

Mr Jarigbe also noted that some of the beneficiary companies did not follow the guidelines and standard procedures before obtaining the loan.

“Some of the beneficiaries did not follow the guidelines. For instance, the Ministry of Petroleum Resources is not even aware that the funds had been released.

“The guidelines stated clearly without ambiguity that they are supposed to do evaluation at the ministry before the list of the qualified ones would be sent to the CBN for them to access the loans but that was not done properly,” the senator said.


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