EFCC Recovers $3m, N1.303bn from Aiteo, Newcross Over Alleged Revenue Evasion

The Economic and Financial Crimes Commission (EFCC) has recovered $3 million and N1.303 billion from two oil companies, Aiteo Exploration and Production Limited and Newcross Exploration and Production Limited, over outstanding statutory payments owed to the Federation.

The recovered funds were formally handed over to the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) on Tuesday.

The EFCC said the recovery followed an investigation into alleged non-remittance of revenues accruing from stamp duties and crude oil pipeline transportation charges by the two companies.

According to a statement issued by the commission’s spokesperson, Dele Oyewale, the Acting Lagos Zonal Director, Bawa Kaltungo, presented the recovered funds to representatives of RMAFC during a handover ceremony.

Oyewale explained that the investigation commenced after the EFCC received a petition from a consulting firm engaged by RMAFC, alleging conspiracy, tax evasion and economic sabotage over revenues due to the Federation.

The petition focused on alleged failures to remit statutory payments arising from stamp duties and pipeline transportation fees associated with several oil facilities, including Escravos, Pennington, Trans-Forcados, Odudu, Amenam and Nembe Creek Trunkline.

The disputed transactions covered the period between 2010 and 2019.

The EFCC spokesperson disclosed that RMAFC had obtained a presidential fiat dated December 20, 2021, authorising it to pursue the recovery of outstanding revenues owed to the Federation by the affected public and private entities.

Following the commencement of investigations, both companies submitted documents detailing their respective remittances.

However, an analysis of the documents reportedly established that Aiteo failed to remit $38.43 million, representing 1.5 per cent stamp duty arising from its acquisition of Oil Mining Lease (OML) 29 and Nembe Creek Trunkline.

“The investigation also established that Newcross Exploration and Production Limited had outstanding payments of $22.84 million in crude oil transportation fees,” Oyewale said.

The EFCC said both companies subsequently acknowledged their respective liabilities and commenced payments into recovery accounts maintained by the commission with the Central Bank of Nigeria (CBN).

According to the commission, Aiteo paid $1.5 million and N750 million towards its outstanding stamp duty obligations.

Newcross also made payments towards its outstanding crude oil transportation charges.

The commission said the recovery exercise ultimately yielded $3 million and N1.303 billion, which have now been transferred to RMAFC for the benefit of the Federation.

The recovery represents another effort by the EFCC and RMAFC to recover statutory revenues allegedly withheld from government coffers by private-sector operators.