Petroleum Ministry Accuses CBN Of Breach In N135bn Gas Intervention Fund

…says apex bank failed basic guidelines for accessing N250bn

Federal Ministry of Petroleum Resources on Wednesday revealed that it was unaware of N135 billion disbursed by the Central Bank of Nigeria (CBN) for the purpose of national gas expansion programme.

The ministry, also, disclosed that the disbursement of the fund by the apex bank contravened due process and basic guidelines for accessing N250 billion set aside for gas development and expansion.

,,,,The ministry’s Director of Gas, Mrs. Oluremi Komolafe made the disclosure at the investigative hearing instituted by the Senate Committee on Gas at the Senate Complex.
In 2021, specifically, the ministry initiated National Gas Expansion Programme to expand gas projects across the federation and encourage domestic utilisation among all Nigerians.

…..Consequently, the federal government created the N250 billion National Gas Expansion Programme domiciled in the CBN in order to achieve its goal of expanded domestic gas development and utilisation.

However, Chairman, Senate Committee on Gas, Senator on Jarigbe Jarigbe instituted an investigative hearing to unravel how the N250 billion gas intervention fund was disbursed and manage under former Governor of CBN, Mr. Godwin Emefiele.

….At the hearing , Komolafe told the Senate Committee on Gas that the federal government was not aware of the disbursement of the N250 billion gas intervention fund.
Komolafe further acknowledged before the senate committee that although the Federal Ministry of Petroleum Resources partnered the apex bank to set up the National Gas Expansion project, it was unaware of the disbursement of N135 billion of the intervention fund to 14 companies.

…..The gas director further revealed that the ministry received 150 applications from interested investors while 69 of the applications recommended benefiting from the National Gas Expansion Programme.
Currently, according to the gas director, applications of 16 companies are being processed in the ministry.

The federal government was not aware of the disbursement of the intervention fund.
Senators, who were present at the investigative hearing, were shocked about the revelation by the Federal Ministry of Petroleum Resources.

,,,,,In his comment, Senator Abdul Ningi (Bauchi Central and Senator Jimoh Ibrahim (Ondo South) observed at the hearing that due processes were violated in the disbursement of the intervention fund for the gas industry.

The Committee established that the apex bank violated single limit of N10 billion that should be granted each company for the purpose of the national gas expansion programme.

,,,,,,The committee, also, established that some companies received as much as N15 billion, N17 billion and N20 billion from the apex bank in contravention to the guidelines of the Federal Ministry of Petroleum.

Defending its decision on the disbursement of the fund, the apex bank said.that the Apex intervention funds are done through the commercial banks adding that commercials banks are in charge of the risk assessment and eligibility of the beneficiaries.

…..The CBN further informed the Committee that N135 billion has been disbursed so far from the Intervention Fund adding that there duty is to ensure single digits interest