EFCC recovers $3 million and N1.3 billion from two companies

The Economic and Financial Crimes Commission (EFCC) has recovered $3 million and N1.3 billion in unpaid federal revenues from two companies. The funds were handed over to the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).

The EFCC announced on Tuesday that the money was recovered from Aiteo Exploration and Production Limited and Newcross Exploration & Production Limited. The agency stated that these funds are liabilities arising from unremitted payments to the federal government.

Bawa Kaltungo, who is the acting Zonal Director of the EFCC’s Lagos Zonal Directorate 2, delivered the money to RMAFC on Monday. This information was shared in a statement from the EFCC on Tuesday.

Background of the Case

The EFCC started investigating these companies after it received a petition from a consulting firm hired by RMAFC. The petition claimed there was conspiracy, tax evasion, and economic sabotage that led to revenue losses for the Federation.

An audit showed that stamp duty and pipeline transportation fees were not paid to the government, according to the petitioner. The oil hubs and pipelines connected to this issue include Escravos, Pennington, Trans-Forcados, Odudu, Amenam, and Nembe Creek Trunkline.

The failure to pay these revenues caused significant losses to the government from 2010 to 2019. In response, RMAFC got a presidential fiat on December 20, 2021. This allowed them to recover all outstanding revenues due to the Federation from both public and private companies.

The two firms provided all necessary documents to the EFCC during the investigations.

Findings of the EFCC

The EFCC found that Aiteo did not remit a total of $38.43 million. This amount represents 1.5 percent stamp duty from its acquisition of Oil Mining Lease and the Nembe Creek Trunkline.

Additionally, Newcross Exploration & Production Limited failed to pay $22,841,662.03 in crude oil transportation fees for using the Nembe Creek Trunkline. The EFCC pointed out that the Nembe Creek Trunkline is a joint venture involving the federal government and Aiteo Exploration and Production Limited.

The two companies admitted they owed the money and began making payments into the EFCC’s recovery accounts at the Central Bank of Nigeria (CBN) between January 28 and August 24.

Payments Made

According to the EFCC, Aiteo Exploration and Production Limited repaid $1.5 million and N750 million in unpaid stamp duty.

Newcross Exploration & Production Limited also paid $1,500,000 and over N553.1 million for outstanding pipeline and terminal fees.

Combined, the total payment from both companies amounts to $3 million and N1.3 billion. The failure to pay taxes and fees leads to major revenue loss for the government, especially since Nigeria relies heavily on money from crude oil.

Thus, recovering these funds is a boost for public finances. The EFCC’s operation focuses on recovering proceeds of crimes and ensuring that funds go back to their rightful owners.