The Economic and Financial Crimes Commission (EFCC) has begun to look into the books of oil producing and servicing firms in Nigeria over evasion of statutory levies into the account of the Federal Government.
Government, which through the NCDMB gave this hint last weekend, noted that it invited EFCC into the issue when it discovered that the oil firms deliberately short-changed its agencies in the process.
Reading the riot to the oil firms, NCDMB said that most of them erred over evasion of one per cent payment of contract value, threatening to block debtor firms from projects.
“Operating and service oil and gas companies that default in remitting one per cent of the value of their contracts to the Nigerian Content Development Fund (NCDF) would henceforth be blocked from participating in the industry tendering processes by the Nigerian Content Development and Monitoring Board (NCDMB),” a correspondence between the board and some oil firms sighted by this newspaper showed.
Such non-compliant companies, NCDMB continued, “would also be suspended from getting statutory clearances such as the processing of Expatriate Quota applications.”
Confirming that the commencement of the process of looking at the financials of non-compliant oil firms by the EFCC, Executive Secretary NCDMB, Simbi Wabote said that the board “reserve the right involve the Economic & Financial Crimes Commission (EFCC) for further action in line with our Service Level Agreement.”
He explained that the remittance of one per cent of the value of contracts awarded in the upstream section of the oil and gas industry was mandatory under Section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD Act).
He regretted however, that many companies continued to contravene this provision of the Act, some through non-deduction of the statutory fee, non-remittance of amount deducted at source and mis-interpretation of the applicability of the provisions.
He added that the level of infractions by some firms had been revealed with the deployment of the NCDF Remittance Forensic Audit last November, using third party chartered accounting firms.
Wabote commended operating and service oil companies that have owned up to their indebtedness and have started addressing their infractions, adding,” a greater commendation goes to those who diligently make their remittances accurately without any compulsion form the Board.”
He confirmed that the Board would be willing to discuss with debtor companies on implementing structured payment plans, but would not entertain pleas to write off any indebtedness.
Wabote gave an account of the utilisation of NCDF, noting that “with this Fund, we have been able to support investments and collaborate with industry stakeholders with the roll-out of the $200m
Nigerian Content Intervention Fund (NCI Fund), partnership with project promoters in the establishment of modular refineries, and exited appropriation to become a self-funding agency of government.”
He added that the NCDF has also enabled the Board to progress the construction of its new headquarters building in Yenagoa, Bayelsa State and industrial parks, provide support for Project-100 beneficiaries, fund Human Capacity Development programs and deliver other activities.
The Executive Secretary confirmed that NCDMB had so far disbursed $160 million.
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