From Premium Times Nigeria · Falmata Daniel · · 2m
EFCC recovers $3m, N1.3bn unremitted revenues
EFCC hands $3m and N1.3bn to RMAFC after recovering unremitted revenues from two firms.
In brief
EFCC hands $3m and N1.3bn to RMAFC after recovering unremitted revenues from two firms. The Economic and Financial Crimes Commission recovered $3 million and N1.3 billion in unremitted federal revenues from Aiteo Exploration and Newcross Exploration & Production Limited and handed them to the Revenue Mobilisation…
EFCC recovers $3m, N1.3bn unremitted revenues
The Economic and Financial Crimes Commission 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.
Funds recovered from two firms
The EFCC recovered $3 million and N1.3 billion from Aiteo Exploration and Newcross Exploration & Production Limited.
Liabilities for unremitted payments
The funds were part of liabilities established against the companies for unremitted statutory payments to the federation.
How case started
EFCC investigated the companies after receiving a petition from a consulting firm engaged by RMAFC alleging conspiracy, tax evasion and economic sabotage.
Audit findings
An audit revealed stamp duty and pipeline transportation fees were not remitted to the government, affecting oil hubs and pipelines including Escravos, Pennington, Trans-Forcados, Odudu, Amenam and Nembe Creek Trunkline.
Revenue loss period
The lack of compliance created a huge loss to the government between 2010 and 2019.
Presidential fiat
RMAFC obtained a presidential fiat on December 20, 2021 authorizing recovery of all outstanding revenues due to the Federation.
Company submissions
The two companies submitted all relevant documents to EFCC during investigations.
Aiteo's debt
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.
Newcross debt
Newcross Exploration & Production Limited did not remit $22,841,662.03 as crude oil transportation fees for Nembe Creek Trunkline.
Nembe Creek Trunkline
Nembe Creek Trunkline is operated as a joint venture between the federal government and Aiteo Exploration and Production Limited.
Payments timeline
The companies admitted the money they owed and began making payments into EFCC’s recovery accounts at the Central Bank of Nigeria between January 28 and August 24.
Aiteo payments
Aiteo paid back $1.5 million and N750 million of unremitted stamp duty.
Newcross payments
Newcross paid $1.5 million and over N553.1 million as outstanding pipeline and terminal fees.
Total recovered funds
Summed together, $3 million and N1.3 billion were paid by the companies.
What to remember
The Economic and Financial Crimes Commission recovered $3 million and N1.3 billion in unremitted federal revenues from Aiteo Exploration and Newcross Exploration & Production Limited and handed them to the Revenue Mobilisation Allocation and Fiscal Commission.
