EFCC probe recovers N115bn, $84m from Oil Companies

The Economic and Financial Crimes Commission has recovered more than ₦115 billion and $84 million in outstanding statutory levies owed the Niger Delta Development Commission by oil companies, as the Senate steps up its investigation into financial obligations identified in Nigeria’s oil and gas sector.

The disclosure was made before the Senate Public Accounts Committee on Wednesday during its ongoing investigation into issues raised in the 2021–2023 Nigeria Extractive Industries Transparency Initiative Oil and Gas Industry Audit Report.

The committee, chaired by Senator Ibrahim Dankwambo, is examining outstanding payments and other financial discrepancies involving oil companies operating in the country.

Representing the EFCC, Francis Usani told the committee that the commission investigated 43 oil companies following queries raised in the NEITI audit.

He said 24 companies operating in the oil-rich Niger Delta were found to have outstanding liabilities arising from the statutory three per cent levy payable to the NDDC, while 19 companies were cleared.

“At the commencement of the investigation, EFCC invited 43 oil companies, out of which 24 operating within the Niger Delta were found to have outstanding liabilities in the sums of N76,883,705,907.17 and $81,076,655.00, while the remaining 19 other oil companies were given a clean bill of health,” Mr Usani told the committee.

According to him, the EFCC’s intervention prompted some of the affected companies to settle their obligations directly with the NDDC.

He disclosed that the companies had paid ₦6.71 billion and $16.99 million directly to the commission.

Usani further explained that the EFCC had released ₦73.37 billion and $67.07 million of the recovered funds to the NDDC, while ₦3.51 billion and $14.01 million remained in the commission’s recovery account.

“Out of the sums so far recovered by the commission on behalf of NDDC, total sums of N73.37bn and $67.07m have been released to NDDC, leaving the balance of N3.51bn and $14.01m in EFCC’s recovery account,” he said.

The recovery forms part of the Senate’s broader examination of revenue shortfalls and unresolved liabilities identified in NEITI’s audit of Nigeria’s oil and gas industry.

Three per cent NDDC levy under scrutiny

Mr Usani said the EFCC focused primarily on the unpaid three per cent statutory levy due to the NDDC, as identified in the NEITI audit.

He, however, clarified that the investigation did not rule out the possibility of other unpaid statutory obligations and taxes owed the Federal Government.

“The EFCC focused on one primary pillar identified in the NEITI report, i.e., unpaid three per cent statutory levies due to NDDC, but we did not lose sight of the fact that there could be other unpaid statutory obligations and taxes due to the Federal Government,” he said.

The three per cent levy forms part of the statutory funding framework of the NDDC and is intended to finance development interventions across the Niger Delta.

The issue is particularly significant given the region’s long-standing environmental and socioeconomic challenges linked to oil and gas exploration and production.

The Senate committee is therefore examining whether failures by oil companies to remit statutory payments contributed to revenue leakages and affected the resources available for development in the Niger Delta.

Senate summons oil chiefs

As the EFCC presented details of its recovery efforts, the Senate committee also moved to compel the chief executives of major oil companies to personally respond to queries raised against their companies in the NEITI audit reports.

The committee rejected an attempt by TotalEnergies EP Nigeria Limited to have a representative appear on behalf of its management, insisting that the company’s managing director must personally answer questions before the panel.

The committee consequently directed the Managing Director of TotalEnergies EP Nigeria Limited to appear before it next week.

It also issued what it described as a final opportunity to the managing directors of South Atlantic Petroleum Limited, Oando Oil Limited, Famfa Oil Limited and Green Energy International Limited to appear personally before the committee.

The decision followed concerns over the adequacy of representations made by some companies invited to respond to financial queries contained in the NEITI reports.

The latest summons signals a tougher approach by the Senate panel, which wants direct explanations from the heads of companies whose financial obligations have been flagged in the audit.

Probe to continue

The Senate investigation covers the 2021, 2022 and 2023 NEITI Oil and Gas Industry Audit Reports, which are designed to promote transparency and accountability in Nigeria’s extractive sector.

The audits examine production, payments, revenues and other transactions between oil companies and government institutions while identifying discrepancies and outstanding obligations requiring reconciliation.

The Senate Public Accounts Committee has consequently been inviting companies named in the reports to explain unresolved queries.

The panel had earlier summoned several oil companies over outstanding issues and warned that failure to honour its invitations could lead to the invocation of the constitutional powers of the National Assembly.

For the lawmakers, the investigation goes beyond recovering outstanding funds. It is also aimed at determining whether existing mechanisms are effective enough to ensure that companies operating in Nigeria’s extractive sector comply with their statutory obligations.

The EFCC’s intervention has provided the committee with additional information on how audit findings can translate into investigations and financial recoveries.

The commission’s findings are also expected to assist the Senate as it examines the financial relationship between oil companies and government agencies responsible for collecting statutory revenues.

The committee is expected to continue its investigative hearing on Thursday, with additional oil companies and relevant government agencies potentially invited as lawmakers seek to establish the full extent of outstanding obligations.

Senator Dankwambo said the committee would continue its investigation until it obtained the necessary explanations on the issues raised in the audit reports.

The Senate probe is expected to focus increasingly on personal appearances by company chief executives, particularly where previous representations have failed to resolve outstanding queries.

The investigation could therefore lead to further recoveries, additional summonses or enforcement recommendations where companies are found to have failed to meet their statutory obligations.