Nigerian lawmakers intensify probe on Nigeria's 32-year joint ventures

Nigerian lawmakers have intensified their probe into Nigeria's 32-year joint ventures with the Nigerian National Petroleum Company (NNPC) and other International Oil Companies (IOCs). The focus of the investigation is on obtaining all tax records of joint venture businesses and production sharing contracts dating back to 1990. Adeoye Adefulu, Partner at Odujinrin & Adefulu, shed light on this matter during an interview with CNBC Africa. The decision to delve into a 32-year period raises questions about the significance of 1990 as the starting point for the scrutiny. Adefulu highlighted that while there may not be a specific landmark event in 1990 within the joint ventures, it was around the time when major production sharing contracts were being negotiated. He emphasized the challenge of accessing records from such a distant timeframe, citing difficulties in retrieving information dating back over three decades. The issue of accountability and transparency within the oil and gas sector has come to the forefront with the lawmakers' demand for the presence of CEOs and the submission of all tax records. Adefulu noted the logistical challenges that arise when multiple entities, including regulatory bodies and executive authorities, call on CEOs to appear before them. The lack of coordination between different investigative bodies adds a layer of complexity to the process. Adefulu questioned the efficiency of the probe, suggesting that a more effective approach would be to initially examine existing records held by government agencies like the NNPC, the Department of Petroleum Resources (DPR), the Federal Inland Revenue Service (FIRS), and the Nigerian Extractive Industry Transparency Initiative (NEITI). By first reviewing these records for any discrepancies or missing information, lawmakers can target their inquiries more precisely. Another point of contention is the discovery that the Office of the Accountant General of the Federation was unaware of certain secret accounts, prompting the call for the Central Bank of Nigeria (CBN) to disclose all domestic accounts. The concern over clandestine financial activities and the potential for corruption underscores the need for increased transparency and accountability across all sectors. Despite the push for transparency in the Nigerian oil and gas industry, Adefulu cautioned against repeating investigations that have already been conducted in previous years. Rather than starting anew, he advocated for building upon existing reports and records to identify areas that require further scrutiny. This approach would not only streamline the investigative process but also instill confidence in stakeholders regarding the integrity of the industry. As the probe unfolds and more information comes to light, Nigerian lawmakers face the challenge of balancing the need for accountability with the efficient use of resources. By focusing on targeted inquiries based on existing records and ensuring coordination among investigating bodies, the investigation into Nigeria's 32-year joint ventures can yield meaningful results and reinforce trust in the country's oil and gas sector.