The federal government and the Economic and Financial Crimes Commission (EFCC) have been accused of illegality in administering funds and assets of the Niger Delta Development Commission (NDDC).
Believing in the anti-corruption mantra of the federal government, a coalition of civil society organizations (CSOs) working with The Act for Positive Transformation Initiatives (APTI) launched a campaign for probity and accountability on the NDDC in 2020.
Thus far, the campaign has revealed that the government only pays lip service to the war against corruption, with the CSOs stressing that the government has failed to take any deterrent steps despite the volume of evidence presented.
Speaking at a press briefing on Wednesday, Kolawole Johnson, Head, Directorate of Research, Strategy & Programmes of APTI, disclosed that the government rather took advantage of the campaign to engage in systemic feasting on NDDC’s resources.
According to Johnson, this illegality by the federal government through the EFCC in daily shortchanging the Commission and the people of the Niger Delta region has been ongoing since 2020.
“The Act establishing the Niger Delta Development Commission, without ambiguity, gave the Commission the exclusive power to determine how its assets and funds are to be held and regulated.
“Since 2020, the Economic and Financial Crime Commission has taken over, albeit illegally, the role of collecting 3% of the total annual budget of oil-producing companies (The major revenue source for the NDDC) on behalf of the NDDC without remitting the same to the Commission.
“This was done without any legal justification and in flagrant disregard of the NDDC Establishment Act, 2000. By this act, the EFCC ambushed the provision of section 14(2) (b) of the NDDC Act, diverting and syphoning funds assigned, allotted and due to the NDDC. Note: oil companies are the largest contributor to the NDDC’s revenue.
“This act of the EFCC is ultra-vires of the powers of the EFCC provided in the EFCC Act 2004 of which collecting funds allocated by law to another body enacted by law does not apply,” he stated.
He went further to say: “Curiously, in the course of a close investigation, the anti-graft agency appeared not to have created a dedicated account for this fund, fueling suspicion that the Agency might have turned-in a chunk of the fund into recovery for the Federal Government.
“The said fund cannot be classified under recovery and thus, cannot be kept under government recovery account.
“Some concerned officials from the region have always been willing tools in perpetuating this illegality, perhaps for the satisfaction of feudal lords.
“ The immediate past Minister of Niger Delta Affairs and the present Minister cannot feign ignorance. As recent as December 2022, The Minister, claiming to be working on approval from the President, was hoping to access the sum of Four Hundred and Eighty Billion Naira ((480,000,000,000) from the NDDC’s fund with the anti-graft agency to fund some special emergency projects.
“Notwithstanding the prolonged inability to access the said fund, sources within the oil-producing companies reveal the Minister of Niger Delta Affairs, Mr Umana Okon Umana, still encourages the companies to pay the statutory revenue to the anti-graft agency.
“Of note, by law, EFCC is not a revenue collection agency and thus, cannot make itself one through the back door through hoodwinking and instrument of blackmail.
“The law only gives the power to specify how NDDC assets are to be held to the management and Board of the Commission, not EFCC or any other agency of government, not even the Ministry of Finance or the Federal Inland Revenue Service. EFCC cannot assume the role of NDDC management under any guise. It is unlawful and illegal”.
Meanwhile, APTI has demanded the immediate discontinuance of demand for the 3% of the total annual budget of the oil-producing companies operating onshore and offshore in the Niger Delta, including the gas-producing companies.
APTI also demanded the refund by the EFCC to the NDDC, immediately without illegal deductions of commission or charges whatsoever, within seven (7) days of all the 3% of the total annual budget of the oil-producing companies operating onshore and offshore in the Niger-Delta states including the gas producing companies that have been taken by the EFCC on behalf of the NDDC since 2020.
“The EFCC should within seven working days give a proper account of what has been collected thus far and make the same public for the purpose of accountability.
“While assuming that the Economic and Financial Crime Commission will do what is just in this regard by returning the total sum collected thus far, we call on the Commission to release the fund to a dedicated NDDC account not to be touched till after the general elections and even after the general elections, the management of the Commission should ensure every penny taken out of the fund is properly accounted for probity,” APTI demanded.
