EFCC Clash with Oil-Producing State Governors over Siphoned Billions

In a monumental clash of interests, the Economic and Financial Crimes Commission (EFCC) finds itself at odds with nine governors of oil-producing states, unraveling a high-stakes dispute surrounding a colossal sum of N84.7 billion diverted from the statutory 13 per cent derivation meant for these states.

Tensions escalated dramatically following the EFCC’s demand for the release of N52 billion recovered from the former Accountant General of the Federation, Ahmed Idris, and his accomplices. Idris faces trial over a litany of charges, including money laundering, public fund diversion, abuse of office, and conspiracy—allegations that have fueled the already intense standoff between the EFCC and these governors.

The EFCC’s meticulous investigation exposed the staggering misappropriation of N84.7 billion from the statutory 13 per cent derivation intended for nine oil-producing states. These include Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers. Shockingly, this hefty sum was purportedly siphoned off by a consultancy firm known as Olusegun Akindele Consultancy and other partners, engaged by the states under the umbrella of the Niger Delta Development Commission (NDDC). The firm’s ostensible task was to review and reconcile payments owed to these states from the Excess Crude Account (ECA) during the years spanning 2004 to 2016.

Strikingly, a substantial chunk—N84.7 billion—of these diverted funds allegedly landed in the coffers of Olusegun Akindele Consultancy. This significant revelation has sparked a wildfire of contention, particularly after the EFCC successfully recouped N52 billion linked to dubious consultancy contracts awarded to three of the four beneficiary groups.

The recovered funds, earmarked for the nine oil-producing states by the Federal Executive Council in an August 2021 meeting, have become the nucleus of a contentious battle. The EFCC’s insistence on directly channeling the funds into the Central Bank of Nigeria’s derivation accounts for each state has pitted them squarely against the governors.

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Governor Umo Eno of Akwa Ibom State led the charge to secure the release of the N52 billion to the states through Messrs Platinum Resources Limited. However, the EFCC staunchly opposed this move, demanding comprehensive government account details from all nine states before releasing the funds.

This standoff has intensified with reports indicating that Governor Eno shared only account details for Akwa Ibom, Delta, Bayelsa, and Rivers states—omitting information for the remaining five states. The EFCC, standing firm on its requirement for the complete account information, has amplified the discord between the anti-corruption agency and the governors.

EFCC Chairman Ola Olukoyede’s determined stance aims to deposit the recovered funds into the Central Bank’s derivation accounts for individual states. This unwavering commitment to transparency and accountability has emerged as the catalyst for the escalating tensions between the EFCC and the governors, marking a pivotal moment in the ongoing battle over these retrieved billions.