EFCC Recovers Over N115bn and $84m in Outstanding Statutory Levies
The Economic and Financial Crimes Commission (EFCC) has recovered more than N115 billion and $84 million in outstanding statutory levies owed to the Niger Delta Development Commission (NDDC) by oil companies. This revelation was shared with the Senate during a session of the Public Accounts Committee, which is currently investigating issues outlined in the 2021–2023 Nigeria Extractive Industries Transparency Initiative (NEITI) Oil and Gas Industry Audit Report.
The committee, chaired by Senator Ibrahim Dankwambo, heard from Francis Usani, a representative of the EFCC. He explained that the agency had investigated 43 oil companies following queries raised in the NEITI audit. Of these, 24 companies operating in the Niger Delta were found to have outstanding liabilities related to the three per cent statutory levy payable to the NDDC.
According to Usani, the 24 companies initially owed N76.88 billion and $81.08 million. However, after the investigation, 19 of them were cleared of any wrongdoing. The EFCC’s involvement prompted some of the affected companies to settle their obligations directly with the NDDC. These companies paid N6.71 billion and $16.99 million directly to the commission.
Usani further disclosed that the EFCC had released N73.37 billion and $67.07 million of the recovered funds to the NDDC. The remaining balance of N3.51 billion and $14.01 million is still held in the EFCC’s recovery account.
Focus on Statutory Obligations
The EFCC’s investigation primarily focused on the unpaid three per cent statutory levy due to the NDDC, as identified in the NEITI audit. However, Usani clarified that the commission did not rule out the possibility of other outstanding statutory obligations and taxes owed to the Federal Government.
This disclosure is particularly significant given the NDDC’s statutory responsibility for the development of the Niger Delta region, where oil and gas exploration has led to environmental and socioeconomic challenges. The three per cent levy serves as a key funding source for the NDDC, supporting development interventions in the region.
The Senate committee is examining whether oil companies have fulfilled their financial obligations and whether failures to remit statutory payments contributed to revenue leakages in the sector.
Compelling Company Executives to Appear
As the EFCC presented details of its recovery efforts, the Senate committee took a firm stance, compelling chief executives of major oil companies to personally respond to queries raised against their companies in the NEITI audit report.
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. Consequently, the Managing Director of TotalEnergies EP Nigeria Limited was directed to appear before the committee next week.
The committee also issued 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 panel.
This move reflects a tougher approach by the Senate panel, which is seeking direct explanations from company heads whose operations and financial obligations have been flagged in the audit.
Broader Review of NEITI Reports
The Senate investigation is part of a broader review of the 2021, 2022, and 2023 NEITI Oil and Gas Industry Audit Reports. These audits aim to promote transparency and accountability in Nigeria’s extractive industries by examining production, payments, revenues, and other transactions between companies and government entities.
The reports also serve as a basis for identifying discrepancies and outstanding obligations requiring clarification or reconciliation. The Senate Public Accounts Committee has been inviting companies named in the reports to explain outstanding queries.
Earlier, several oil companies were summoned over unresolved issues arising from the audits, with warnings that failure to comply could lead to the invocation of the constitutional powers of the National Assembly.
Continuing Investigation and Future Steps
The committee’s latest actions reflect its determination to establish whether the financial obligations identified in the NEITI reports have been settled and, where they remain outstanding, why. For lawmakers, the issue extends beyond the recovery of funds to the effectiveness of mechanisms ensuring compliance with statutory obligations.
The EFCC’s intervention demonstrates how audit findings can lead to further investigations and recovery efforts when discrepancies or outstanding liabilities are identified. The commission’s work also provides the Senate with additional information as it examines the financial relationship between oil companies and government institutions responsible for collecting statutory revenues.
The committee is expected to continue its investigative hearings on Thursday as it examines further details contained in the NEITI reports. Additional oil companies and relevant government agencies may 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.
Dankwambo emphasized that the committee would continue its investigation until it had 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 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.
