The Economic and Financial Crimes Commission has told the Senate that more than N115 billion in statutory obligations owed to the Niger Delta Development Commission by oil companies was recovered following investigations conducted between 2021 and 2023.
The disclosure was made on Wednesday during the Senate Public Accounts Committee’s ongoing examination of findings contained in the Nigeria Extractive Industries Transparency Initiative’s oil and gas audit reports.
According to the EFCC presentation, the liabilities identified during the investigation amounted to N76.883 billion and $81.076 million.
The figures relate primarily to the statutory levy payable to the NDDC by companies operating in the Niger Delta. NEITI’s oil and gas data identifies the NDDC levy as a statutory payment equivalent to 3 per cent of the annual budget of upstream companies.
The EFCC said its investigation involved 43 oil companies, with 24 of them found to have outstanding liabilities. The remaining 19 companies investigated were reportedly cleared of the liabilities under examination.
EFCC details investigation and recoveries
Representing the anti-graft agency before the committee, Francis Oka-Phillips Usani said the investigation began with invitations issued to 43 oil companies.
He explained that the exercise subsequently established outstanding obligations involving 24 companies operating within the Niger Delta.
According to the figures presented to lawmakers, those liabilities stood at N76,883,705,907.17 and $81,076,655.
The EFCC said its intervention resulted in payments being made directly to the NDDC by some of the companies under investigation.
Those direct payments amounted to N6.709 billion and $16.994 million.
The agency further reported that, from the overall amounts recovered or secured through its intervention, N73.373 billion and $67.070 million had been released to the NDDC.
A further N3.510 billion and $14.005 million remained in the EFCC recovery account, according to the presentation to the Senate panel.
The figures provide a breakdown of the recovery process rather than suggesting that the entire amount identified in the initial investigation was paid into the NDDC at once.
Investigation linked to NEITI audit findings
Usani explained that the EFCC investigation was substantially focused on the three per cent statutory contribution due to the NDDC, following issues identified in the NEITI audit.
NEITI’s published audit records cover separate oil and gas reviews for 2021, 2022 and 2023, examining payments by companies and receipts recorded by government institutions.
The agency’s wider work is designed to improve transparency and accountability in Nigeria’s extractive industries by comparing information supplied by companies with records held by government agencies.
The NDDC levy is one of several payment streams tracked through NEITI’s oil and gas data system. Other streams include petroleum taxes, royalties, gas-flaring penalties, company income tax, rentals and payments to the Nigerian Content Development and Monitoring Board.
The EFCC representative stressed that the investigation did not mean other statutory obligations were ignored.
He said the commission also considered other unpaid liabilities and taxes owed to the Federal Government where they arose during the course of the investigation.
Senate continues scrutiny of oil companies
The EFCC presentation formed part of a wider Senate inquiry into unresolved issues contained in NEITI’s audit findings.
The Public Accounts Committee, led by Senator Ibrahim Hassan Dankwambo, has been summoning oil companies to explain queries relating to their financial obligations and dealings with government institutions.
The committee’s latest proceedings also exposed disagreements over how some companies were responding to the lawmakers’ invitations.
After the EFCC presentation, the panel rejected an attempt by TotalEnergies EP Nigeria Limited to respond to a query through a representative, insisting that the company needed to be represented at a higher level.
The committee subsequently directed the company’s managing director to appear before it personally next week.
The decision underscores the panel’s determination to hear directly from senior executives when dealing with significant audit queries.
Four companies given another opportunity
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 and Green Energy International Limited.
The executives were directed to appear physically before the panel.
The Senate’s insistence on personal appearances reflects the increasing pressure on oil companies to provide direct explanations for issues identified through the audit process.
Rather than relying solely on written submissions or junior representatives, lawmakers appear to be seeking executives who can answer questions about their companies’ financial records and statutory obligations.
Senator Dankwambo said the committee’s investigative proceedings would continue on Thursday.
Why the NDDC levy matters
The recovery figures are significant because the NDDC relies heavily on statutory contributions to fund development activities in the Niger Delta.
NEITI’s fiscal allocation and statutory-disbursement reporting shows the scale of the commission’s revenue flows. Its 2022-2023 fiscal audit, for example, reported total NDDC receipts of N924.39 billion during the period, with statutory sources accounting for 99.85 per cent of the total. Oil companies contributed 75.19 per cent of the commission’s overall receipts during those two years.
This makes the enforcement and collection of statutory levies particularly important for the commission’s ability to finance projects and programmes in oil-producing communities.
Where companies fail to pay obligations on time, the consequences can extend beyond an accounting entry. Delayed revenues can affect the availability of funds for infrastructure, environmental interventions and other development initiatives.
At the same time, audit queries do not automatically establish criminal wrongdoing. A liability identified during an audit can arise from unpaid obligations, differences in records, delayed reconciliation or disagreements over how a payment should be calculated.
That is why parliamentary hearings and subsequent verification are important in determining the precise status of each disputed amount.
Recovery highlights role of enforcement agencies
The EFCC’s presentation gives the Senate a picture of how audit findings can move from an accountability report into an enforcement process.
NEITI’s role is primarily centred on transparency, data collection and reporting within the extractive sector. Its published audit reports and data platforms provide information that can be used by government institutions, lawmakers, researchers and civil society to examine financial flows in the industry.
The EFCC, meanwhile, can investigate suspected financial offences and pursue recovery where its statutory mandate is engaged.
The Senate’s current review adds another layer of oversight by questioning companies and government agencies about issues identified in the audit process.
The combination of these mechanisms is intended to reduce gaps between identifying an unpaid obligation and actually recovering the money due to government institutions.
Senate keeps pressure on oil sector
The latest hearing is therefore part of a broader effort by lawmakers to establish what happened to revenues identified as outstanding in Nigeria’s extractive sector.
The EFCC’s reported recovery of more than N115 billion in NDDC-related statutory obligations provides one example of how enforcement action can produce financial recoveries after audit findings raise questions.
But the committee’s continuing summonses show that lawmakers believe significant issues remain unresolved.
With TotalEnergies, South Atlantic Petroleum, Oando Oil, Famfa Oil and Green Energy International still expected to appear, the Senate’s investigation is set to continue.
Further hearings could reveal whether additional liabilities remain outstanding, whether some companies dispute the amounts attributed to them and whether more government revenue can be recovered.
For the moment, the EFCC’s disclosure gives the committee a clearer picture of recoveries already made, while the continuing NEITI audit review keeps attention focused on accountability for Nigeria’s oil and gas revenues.
