EFCC recovers $3m, N1.3bn unremitted revenues from two firms, hands over funds to RMAFC

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

The EFCC said in a statement Tuesday that it recovered the sums from Aiteo Exploration and Production Limited and Newcross Exploration & Production Limited.

It said the funds were part of “liabilities established against the two companies for unremitted statutory payments to the federation.”

The acting Zonal Director of the EFCC’s Lagos Zonal Directorate 2, Bawa Kaltungo, handed the money to the RMAFC on Monday, according to the statement from the nati-graft agency on Tuesday.

How case started

EFCC said it investigated the companies after receiving a petition “from a consulting firm engaged by RMAFC, alleging conspiracy, tax evasion and economic sabotage resulting in revenue losses to the Federation.”

An audit revealed that stamp duty and pipeline transportation fees were not remitted to the government, the petitioner wrote.

The oil hubs and pipelines involved include Escravos, Pennington, Trans-Forcados, Odudu, Amenam and Nembe Creek Trunkline.

Due to the lack of compliance in remitting the revenue, it created a huge loss to the government between 2010 and 2019.

As a result, RMAFC obtained a presidential fiat on 20 December 2021 which authorised “it to recover all outstanding revenues due to the Federation from the affected public and private entities.”

The two companies submitted all their relevant documents to EFCC during investigations.

EFCC’s findings

The anti-graft agency said it discovered that Aiteo did not remit $38.43 million, which is 1.5 per cent stamp duty arising from its acquisition of Oil Mining Lease and Nembe Creek Trunkline.

Also, it said Newcross Exploration & Production Limited did not remit $22,841,662.03 as crude oil transportation fees for the use of Nembe Creek Trunkline.

Nembe Creek Trunkline is operated as a joint venture between the federal government and Aiteo Exploration and Production Limited, EFCC noted.

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

Breakdown of payments

Aiteo Exploration and Production Limited paid back $1.5million and N750 million of unremitted stamp duty, the EFCC said.

According to the agency, Newcross Exploration & Production Limited paid $1,500,000 and over N553.1 million as outstanding pipeline and terminal fees.

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Summed up together, $3million and N1.3billion.were paid by the companies.

The failure to remit statutory taxes and fees results in significant revenue loss for the government, particularly given Nigeria’s heavy dependence on crude oil earnings.

Therefore, the recovery of these outstanding funds represents a boost to public finances.

Proceeds of crimes and revenue recoveries for onward remittance to rightful owners have been a major focus of EFCC’s operations.

Recently in March, the EFCC returned more than N3.9 billion in recovered funds to the Nigerian National Petroleum Company Limited (NNPC Ltd).

In June, it announced the recovery of over N9.4 billion, $21.2 million, and several landed properties in an investigation into the alleged diversion of funds released for the rehabilitation and turnaround maintenance of Nigeria’s refineries.

In August, it handed over N125 million recovered from an alleged land fraud suspect to a Lagos businessman, Akinsewa Akiode.

Similarly, it also announced it had secured the forfeiture of cash and assets worth more than $500 million to the federal government in the past three years.