Police SFU Probes Multi-billion Dollar Fraud in Nigeria’s Oil and Gas Sector

Crack operatives of the Special Fraud Unit, SFU, Ikoyi, Lagos have launched multiple investigations into multi-billion dollar fraud allegedly committed against the Nigerian government in the oil and gas industry.

The investigations, underway since the assumption of office by Commissioner of Police Eloho Edwin Okpoziakpo, followed petitions from concerned citizens and intelligence networks that flagged what sources describe as potentially the biggest scam in the sector’s history.

—$90M CONTRACT PADDING ALLEGATION—

In one case, the SFU is probing a petition by an anti-corruption NGO alleging massive padding of an oil and gas contract to the tune of over $90 million.

Sources said the probe has drawn strong pushback. Persons implicated have allegedly written petitions against the CP and his team, and lobbied the Police Service Commission, PSC, to halt the investigation.

The refusal of SFU officers to accept bribes from a major participant in the alleged fraud is said to have triggered the blackmail. The CP was reportedly invited to the PSC headquarters in Abuja to explain what the unit is investigating.

The NGO behind the petition has threatened to escalate the matter to the National Assembly and the United States Senate if there is any attempt to scuttle the probe, noting that some of the companies involved have roots in the US.

“Their mandate does not allow them to interfere with operational duties of the police,” the group said. “They should focus on promotion and discipline. This cannot happen in America. If they dare interfere, we promise to take it to where the commission or anybody else cannot summon any police officer to answer any question.”

The group insisted it will monitor for further interference and ensure the case is pursued “to its logical conclusion.”

—$617M INDIGENOUS COMPANY FRAUD—

Another major investigation involves a $617 million fraud allegedly perpetrated by an indigenous oil company.

According to SFU sources, a project to boost crude oil production was awarded to the company in 2018. In the same year, an expansion contract for the same project was also awarded to it, even though execution of the original project had not started.

Investigators allege that the vendors for both contracts are companies owned by the prime promoter of the oil firm. The expansion was allegedly used to access “Cash Call” funds which were then shared among conniving officials and the company.

The company is also accused of producing crude and under-declaring volumes, in what investigators describe as systematic theft from government revenue.

—$3BN CRUDE OIL THEFT PROBE—

A third investigation relating to crude oil theft worth over $3 billion is also said to be in the works at the SFU. Details of that probe were not immediately available.

—IGP BACKS UNIT’S INDEPENDENCE—

Officers at the SFU described the unit as the police’s leading arm for economic and financial crimes. They credited IGP Tunji Disu for deploying “a star investigator” to head the unit, and said results are now visible.

“The IGP gave stern directives that no fraud or criminal case should be swept under the carpet no matter the temptation by those involved,” a source said.

The SFU has reportedly received official clearance from authorities in Abuja to conduct the investigations without interference.

Both the IGP and CP Okpoziakpo could not be reached for comment at press time.

—CONTEXT—

The renewed focus on oil and gas fraud comes amid federal efforts to boost crude production and plug revenue leakages. Stakeholders have repeatedly called for stronger enforcement and protection for investigators handling high-profile cases in the sector.

[News Express]