By George Ozalla
The Economic and Financial Crimes Commission (EFCC) on Wednesday disclosed that it had recovered more than N115 billion and $84 million in outstanding statutory levies owed the Niger Delta Development Commission (NDDC) by oil companies.
The disclosure was made before the Senate Committee on Public Accounts during its investigation into queries contained in the 2021, 2022 and 2023 Nigeria Extractive Industries Transparency Initiative (NEITI) Oil and Gas Industry Audit Reports.
Representing the EFCC at the hearing, Francis Oka-Phillips Usani said the commission investigated 43 oil companies following queries raised in the NEITI audit reports, with 24 companies operating in the Niger Delta found to have outstanding liabilities arising from the three per cent statutory levy payable to the NDDC.
He said the remaining 19 companies were cleared after investigations established that they had no outstanding liabilities relating to the levy.
According to Usani, the 24 companies were initially found to owe N76,883,705,907.17 and $81,076,655.
He said the EFCC’s intervention led some of the affected companies to settle their obligations directly with the NDDC, resulting in payments of N6.709 billion and $16.994 million.
Usani further disclosed that N73.373 billion and $67.070 million of the recovered funds had been released to the NDDC, while N3.510 billion and $14.005 million remained in the EFCC recovery account.
The figures prompted questions from members of the committee, who sought explanations on how the liabilities accumulated and the steps taken by the relevant authorities to recover money due to the NDDC.
Usani explained that the EFCC investigation was focused on the unpaid three per cent statutory levy due to the NDDC as identified in the NEITI audit reports, adding that it did not cover other taxes or statutory obligations that individual oil companies might owe the Federal Government.
The committee also took action against oil companies whose managing directors failed to appear personally before it to answer questions arising from the audit reports.
The panel rejected an attempt by TotalEnergies EP Nigeria Limited to respond to the queries through a representative and directed the company’s Managing Director to appear personally before the committee next week.
The committee also gave 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 and respond to queries concerning their companies.
Earlier, Seplat Energy, Network E&P Nigeria Limited, All Grace Energy Limited and Aradel Energy Limited had been directed to appear before the committee within 48 hours after they failed to attend an earlier sitting on the NEITI audit queries.
The action followed concerns by lawmakers over the failure of some companies to honour invitations from the committee and provide explanations on issues contained in the audit reports.
The lawmakers also reminded the companies that the National Assembly has constitutional powers to summon persons, companies and government agencies to provide information and explanations on matters under investigation.
The committee subsequently directed the Managing Director of Network E&P Nigeria Limited to appear within 48 hours, warning that failure to comply would attract further action.
The committee also considered a submission by Dubri Oil Company Limited, which disputed a $3.025 million liability attributed to it in the NEITI audit report. The company told the committee that the liability arose from a reconciliation issue with the Nigerian Upstream Petroleum Regulatory Commission and submitted documents in support of its position.
The committee said it would examine the documents before deciding on the company’s claim.
The Public Accounts Committee is examining the NEITI reports to establish outstanding obligations by oil companies, track revenues due to government institutions and determine whether further recoveries are required.
The committee, chaired by Senator Ibrahim Hassan Dankwambo, is expected to continue its examination of the outstanding audit queries at subsequent sittings.
The hearing was attended by Senator Adams Oshiomhole, Senator Osita Izunaso, Senator Tony Nwoye, Senator Nasiru Sani Zangon Daura and Senator Francis Ndubueze, among other members of the committee. Also present were Hon. Ifedayo Abegunde, Executive Director, Corporate Services of the NDDC, and other officials of the commission and relevant government agencies. Abegunde is a former two-term member of the House of Representatives who represented Akure North/Akure South Federal Constituency of Ondo State.
