Investigation by EFCC leads to 24 petroleum companies paying owed N115bn, $84m in NDDC dues

The Economic and Financial Crimes Commission has successfully recovered over N115bn and $84m in unpaid statutory levies owed to the Niger Delta Development Commission by oil companies, as revealed to the Senate on Wednesday.

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This disclosure was made before the Senate Public Accounts Committee, which is chaired by Senator Ibrahim Dankwambo, during the committee's ongoing investigation into issues raised in the 2021–2023 Nigeria Extractive Industries Transparency Initiative Oil and Gas Industry Audit Report.

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Francis Usani, representing the anti-graft agency, stated that the commission investigated 43 oil companies following queries raised in the NEITI audit, with 24 companies operating in the oil-rich Niger Delta found to have outstanding liabilities arising from the three per cent statutory levy payable to the NDDC.

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According to Usani, the 24 companies were initially found to owe N76.88bn and $81.08m, while 19 others were cleared after the investigation, with the EFCC's intervention prompting some of the affected companies to settle their obligations directly with the NDDC.

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Usani disclosed that the companies had paid N6.71bn and $16.99m directly to the commission, and the EFCC had released N73.37bn and $67.07m of the recovered funds to the NDDC, while N3.51bn and $14.01bn remained in the commission’s recovery account.

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The latest disclosure adds a financial dimension to the Senate’s wider examination of revenue shortfalls and unresolved liabilities identified in NEITI’s audit of Nigeria’s oil and gas sector, with the EFCC focusing primarily on the unpaid three per cent statutory levy due to the NDDC.

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Usani clarified that the commission’s investigation did not rule out the possibility of other outstanding statutory obligations and taxes owed to the Federal Government, and the disclosure is significant given the NDDC’s statutory responsibility for the development of the Niger Delta region.

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The three per cent levy forms part of the statutory funding framework for the commission and is intended to support development interventions in the oil-producing region, with the Senate committee examining the extent to which oil companies have complied with their financial obligations.

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The committee is also investigating whether failures to remit statutory payments contributed to revenue leakages in the sector, and as the EFCC presented details of its recovery efforts, the Senate committee moved to compel chief executives of major oil companies to personally respond to queries raised against their companies in the NEITI audit report.

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

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The committee 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, signaling a tougher approach by the Senate panel.

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The Senate investigation is part of a broader review of the 2021, 2022 and 2023 NEITI Oil and Gas Industry Audit Reports, which are intended to promote transparency and accountability in Nigeria’s extractive industries by examining production, payments, revenues and other transactions between companies and government entities.

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The reports provide a basis for identifying discrepancies and outstanding obligations requiring clarification or reconciliation, and the Senate Public Accounts Committee has consequently been inviting companies named in the reports to explain outstanding queries.

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The panel had earlier summoned several oil companies over unresolved issues arising from the audits and warned that failure to honour its invitations could lead to the invocation of the constitutional powers of the National Assembly, with the committee’s latest action against the oil companies reflecting its determination to establish whether the financial obligations identified in the NEITI reports have been settled.

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For the lawmakers, the issue is not limited to the recovery of funds but also concerns the effectiveness of existing mechanisms for ensuring that companies operating in Nigeria’s extractive sector comply with their statutory obligations, and the EFCC’s intervention demonstrates how audit findings can lead to further investigation and recovery efforts when discrepancies or outstanding liabilities are identified.

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The commission’s investigation provides the Senate with additional information as it examines the financial relationship between oil companies and government institutions responsible for collecting statutory revenues, and the committee is expected to continue its investigative hearing on Thursday as it examines further details contained in the NEITI reports.

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Additional oil companies and relevant government agencies may also be invited as the panel seeks to establish the full extent of outstanding obligations and determine whether any revenue due to the Federal Government or the NDDC remains unremitted, with Dankwambo stating that the committee would continue its investigation until it had obtained the necessary explanations on the issues raised in the audit reports.

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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, and the committee’s investigation could result in further recovery actions, additional summonses or recommendations for enforcement where companies are found to have failed to meet their statutory obligations.