EFCC Recovers N115bn, $84m from Oil Firms with Unpaid Levies

• The EFCC has recovered over N115bn and $84m from 24 oil companies operating in the Niger Delta region.
• The recovery efforts were prompted by queries raised in the NEITI audit report, which identified unpaid statutory levies owed to the NDDC.
• The three per cent statutory levy is a key component of the NDDC's funding framework, intended to support development interventions in the oil-producing region.

Out of the sums so far recovered by the commission on behalf of NDDC, total sums of N73.37bn and $67.07m have been released to NDDC, leaving the balance of N3.51bn and $14.01m in EFCCs recovery account.

The Economic and Financial Crimes Commission (EFCC) has made significant strides in recovering outstanding statutory levies owed to the Niger Delta Development Commission (NDDC) by oil companies. According to the EFCC, 24 out of 43 investigated oil companies operating in the Niger Delta region have been found to have unpaid liabilities arising from the three per cent statutory levy payable to the NDDC. The investigation was prompted by queries raised in the 2021-2023 Nigeria Extractive Industries Transparency Initiative (NEITI) Oil and Gas Industry Audit Report. The EFCC's recovery efforts have led to the payment of N6.71bn and $16.99m directly to the commission, with a further N73.37bn and $67.07m released to the NDDC.

The three per cent statutory levy is a key component of the NDDC's funding framework, intended to support development interventions in the oil-producing region. The EFCC's investigation focused primarily on this unpaid liability, but did not rule out the possibility of other outstanding statutory obligations and taxes owed to the Federal Government. This highlights the importance of compliance with financial obligations by oil companies operating in Nigeria. The NEITI audit report identified revenue shortfalls and unresolved liabilities in the oil and gas sector, which has sparked a wider examination by the Senate.

The EFCC's recovery efforts have significant implications for the oil companies involved, potentially exposing them to liability for unpaid statutory payments. The investigation also underscores the need for strict compliance with financial obligations in the sector. As the Senate continues its examination of revenue shortfalls and unresolved liabilities, the spotlight is on the role of oil companies in contributing to these issues. The NDDC's statutory responsibility for the development of the Niger Delta region makes this a critical issue that requires attention.

Lawyers should note that the EFCC's recovery efforts may trigger further scrutiny of oil companies' compliance with their financial obligations, potentially exposing them to liability for unpaid statutory payments.

Source: Original reporting via EFCC probe forces 24 oil firms to pay N115bn, $84m NDDC levies