EFCC recovers N83bn, $98m NDDC levies from oil firms

THE Economic and Financial Crimes Commission (EFCC) has recovered N83.59 billion and $98.07 million in outstanding three percent statutory levies owed to the Niger Delta Development Commission (NDDC) by oil companies.

Special Adviser on Regulatory Compliance to the EFCC, Mr Francis Usani, this on Wednesday while appearing before the Senate Committee on Public Accounts. The committee is investigating findings contained in the 2021–2023 Nigeria Extractive Industries Transparency Initiative (NEITI) oil and gas industry audit report.

The panel, chaired by Senator representing Gombe North, Ibrahim Dankwambo, is examining outstanding statutory obligations owed by companies operating in the extractive sector.

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Usani said the NEITI audit had identified N90.046 billion and $229.534 million in unpaid 3 percent NDDC levies accumulated between 2015 and 2020.

Following the findings, the EFCC invited 43 oil companies for investigation. Of the companies examined, 24 operating in the Niger Delta were found to have outstanding liabilities, while the remaining 19 were cleared and released.

According to Usani, the EFCC directly recovered N76.884 billion and $81.077 million from the 24 companies. The funds were paid into the commission’s recovery account domiciled with the Central Bank of Nigeria (CBN).

He said N73.373 billion and $67.071 million of the recovered funds had subsequently been transferred to the NDDC.As of July 31, the EFCC said N3.510 billion and $14.006 million were still being held in its recovery account.

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Firms pay additional N6.7bn, $17m directly to NDDC

Beyond the funds recovered directly by the EFCC, some oil companies also paid N6.710 billion and $16.994 million directly into the NDDC’s revenue account following the commission’s intervention.

Usani explained that the companies made the payments at the EFCC’s instance and later submitted evidence of payment to the commission for verification.

With the direct recoveries by the EFCC added to the payments made directly to the NDDC, the total amount recovered from the companies rose to N83.59 billion and $98.07 million.

Usani said the EFCC’s investigation was primarily focused on the unpaid 3 percent statutory levy identified by NEITI as being due to the NDDC.

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He, however, noted that the commission was also examining whether the companies had other outstanding statutory obligations and tax liabilities payable to the Nigerian government.

The Senate committee is scrutinising the NEITI 2021–2023 oil and gas audit report, with particular attention to alleged non-remittance and under-remittance of statutory payments by operators.

The probe is also aimed at determining the extent to which oil companies have complied with their financial obligations to the NDDC and other government agencies, while identifying potential revenue leakages in the extractive industry.