EFCC Recovers N115bn, $84m NDDC Levy From Oil Firms

The Economic and Financial Crimes Commission has recovered more than N115bn and $84m in outstanding statutory levies owed the Niger Delta Development Commission by oil companies, the agency told the Senate on Wednesday.

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

Representing the EFCC, Francis Usani said the commission investigated 43 oil companies following queries contained in the NEITI audit.

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

According to Usani, the 24 companies initially owed N76.88bn and $81.08m.

“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,” Usani told the committee.

He said the EFCC’s intervention prompted some companies to settle their obligations directly with the NDDC, resulting in payments of N6.71bn and $16.99m.

The official further disclosed that N73.37bn and $67.07m had been released to the NDDC from funds recovered by the commission, while N3.51bn and $14.01m remained in the EFCC’s recovery account.

Usani explained that the commission focused primarily on unpaid three per cent statutory levies identified in the NEITI report but did not rule out other outstanding obligations and taxes owed to the Federal Government.

The Senate committee is examining whether failures by oil companies to remit statutory payments contributed to revenue leakages in the oil and gas sector.

The investigation also covers the effectiveness of mechanisms used to ensure compliance with statutory financial obligations.

Oil Chiefs Summoned

The committee has also directed managing directors of several major oil companies to personally appear before it to respond to queries raised in the NEITI audit reports.

It rejected an attempt by TotalEnergies EP Nigeria Limited to send a representative, insisting that its managing director must personally answer questions before the panel.

The committee directed the TotalEnergies managing director to appear next week.

Managing directors of South Atlantic Petroleum Limited, Oando Oil Limited, Famfa Oil Limited and Green Energy International Limited were also given what the committee described as a final opportunity to appear personally.

The Senate panel said the summonses were necessary because previous representations by some companies had failed to adequately resolve financial queries contained in the audit reports.

The investigation forms part of the Senate’s wider examination of the 2021, 2022 and 2023 NEITI Oil and Gas Industry Audit Reports.

The committee is expected to continue its hearings as it seeks further explanations from oil companies and government agencies on outstanding statutory obligations and revenue discrepancies.