Reported by Weng Patrick Atokor l Journalist at Weng Global
Nembe Exploration and Production Company Limited has clarified its position following the Economic and Financial Crimes Commission’s (EFCC) recovery of outstanding pipeline transportation fees, stating that the funds in question were owed to its joint venture (JV) rather than to the company itself.
The clarification comes after the EFCC announced the recovery of $3 million and ₦1.303 billion from two oil companies, Aiteo Exploration and Production Limited and Newcross Exploration and Production Limited, over outstanding statutory payments due to the Federation.
The recovered funds were handed over to the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) by the EFCC’s Lagos Zonal Directorate 2 on November 10, 2026.
The development has drawn attention to the financial obligations associated with Nigeria’s oil transportation infrastructure, particularly the Nembe Creek Trunkline, which operates under a joint venture arrangement involving the Federal Government and Aiteo.
What Led to the EFCC Recovery?
According to the EFCC, the recovery followed an investigation into allegations of non-remittance of statutory revenues generated from stamp duties and crude oil transportation fees between 2010 and 2019.
The investigation began after the commission received a petition from a consulting firm engaged by RMAFC.
The petition alleged that revenues accruing to the Federation from transactions involving several oil facilities had not been remitted into designated government accounts.
The affected facilities included Escravos, Pennington, Trans-Forcados, Odudu, Amenam and the Nembe Creek Trunkline.
The EFCC subsequently reviewed documents submitted by the companies to establish their respective payment obligations.
Its findings identified outstanding stamp duty obligations involving Aiteo and pipeline transportation fees associated with Newcross’s use of the Nembe Creek Trunkline.
Understanding Nembe E&P’s Joint Venture Clarification
At the centre of the clarification is the distinction between the financial obligations of an individual oil company and those associated with a jointly operated asset.
Nembe Exploration and Production Company, formerly known as Aiteo Eastern Exploration and Production Company, is associated with the operation of the Nembe Creek Trunkline and Oil Mining Lease 29.
The pipeline is operated under a joint venture arrangement involving the Federal Government and Aiteo.
In such arrangements, the responsibilities and financial entitlements of participating parties are determined by the applicable joint venture agreements.
Nembe E&P’s clarification, as reflected in the supplied report, is that the outstanding pipeline fees were owed to the joint venture rather than to the company in its individual capacity.
This distinction is important because pipeline transportation charges are payments associated with the use of shared infrastructure. The operator, participating partners and other parties may have different financial rights and responsibilities under the relevant arrangements.
Consequently, the identity of the entity entitled to receive a payment is not necessarily the same as the identity of the company responsible for operating the infrastructure.
The clarification therefore raises an important question about how the recovered pipeline fees should be understood within the joint venture’s financial structure.
However, the full company statement and the relevant joint venture documentation were not independently available for this report. The precise contractual basis of the company’s position therefore requires further documentary confirmation.
What the EFCC Said About the Outstanding Payments
In its account of the investigation, the EFCC identified two separate categories of outstanding payments.
The first involved Aiteo Exploration and Production Limited, which the commission said failed to remit $38.43 million in 1.5 per cent stamp duty arising from its acquisition of Oil Mining Lease 29 and the Nembe Creek Trunkline.
The second involved Newcross Exploration and Production Limited, which the EFCC identified as having outstanding crude oil transportation fees of approximately $22.84 million for its use of the Nembe Creek Trunkline.
The commission said both companies submitted relevant documents detailing their respective remittances during the investigation.
Following its review, the EFCC said the companies acknowledged their respective liabilities and began making payments into recovery accounts maintained with the Central Bank of Nigeria.
The investigation covered outstanding revenues associated with transactions and operations between 2010 and 2019.
Breakdown of the Recovered Funds
The EFCC disclosed that additional recovery efforts between January 28 and August 24, 2026, resulted in payments from the two companies.
According to the commission, Aiteo paid $1.5 million and ₦750 million towards outstanding stamp duty obligations.
Newcross, meanwhile, paid $1.5 million and ₦553.128 million towards outstanding pipeline and terminal fees.
The combined payments amounted to $3 million and ₦1.303 billion.
The EFCC subsequently transferred the recovered funds to RMAFC for the benefit of the Federation.
It is important to distinguish the amount recovered from the larger liabilities identified during the investigation. The announced recovery does not establish that all outstanding obligations have been fully settled.
Why the Joint Venture Arrangement Matters
The Nembe Creek Trunkline is an important component of Nigeria’s crude oil transportation infrastructure.
Pipelines play a significant role in moving crude oil from production locations to export terminals. Their operations also generate transportation revenues that form part of the financial arrangements within the petroleum industry.
Where infrastructure is jointly owned or operated, the allocation of revenues can involve several parties, including government interests and private operators.
Nigeria’s oil industry has historically relied on joint venture arrangements to facilitate exploration, production and infrastructure development.
These partnerships allow participating companies and government entities to share responsibilities, investments, operational costs and financial returns.
However, they also require transparent accounting and clear documentation of revenue entitlements.
The clarification by Nembe E&P highlights why distinguishing between company liabilities and joint venture obligations is important when reporting financial recoveries involving shared oil infrastructure.
For regulators, investors and other industry stakeholders, clarity over the ownership and allocation of pipeline revenues is essential to maintaining confidence in the sector.
Implications for Nigeria’s Public Revenue
The EFCC recovery also reflects continuing efforts by Nigerian authorities to improve the collection of statutory revenues from the oil and gas industry.
Nigeria depends significantly on petroleum-related revenues to support public spending, infrastructure development and other government responsibilities.
Unremitted statutory payments can therefore contribute to revenue losses and weaken the resources available to the Federation.
The Revenue Mobilisation Allocation and Fiscal Commission is responsible for monitoring revenues accruing to the Federation and supporting the equitable distribution of public revenue among the three tiers of government.
The recovery exercise followed a presidential fiat obtained by RMAFC on December 20, 2021, authorising the recovery of outstanding revenues owed to the Federation by affected public and private entities.
The involvement of the EFCC demonstrates how financial investigations can support the enforcement of government revenue obligations.
Nevertheless, effective enforcement must also be accompanied by accurate identification of the parties responsible for particular payments.
What Happens Next?
The immediate development is the transfer of the recovered $3 million and ₦1.303 billion to RMAFC.
Further clarification may be required to establish the full implications of Nembe E&P’s position concerning the joint venture’s pipeline fee entitlements.
The relevant company statement, joint venture agreements and official recovery records would help provide a clearer picture of the relationship between the recovered funds and the financial responsibilities of the participating parties.
Neither the announced recovery nor the company’s clarification should be interpreted beyond what the available records establish.
For Nigeria’s oil industry, the issue reinforces the importance of transparent revenue accounting, clear contractual responsibilities and effective oversight of jointly operated petroleum infrastructure.
Ultimately, the central question extends beyond the amount recovered: it concerns how revenues generated from Nigeria’s oil infrastructure are accounted for, who is legally entitled to receive them and whether all outstanding obligations to the Federation are being properly discharged.
Weng Global – Stories beyond borders
Sources
- Economic and Financial Crimes Commission (EFCC) – Official recovery announcement, November 10, 2026.
- Premium Times – EFCC recovers $3m, N1.3bn unremitted revenues from two firms.
- Punch Newspapers – EFCC recovers $3m, N1.3bn from two oil firms.
- Nigeria Extractive Industries Transparency Initiative (NEITI) – Oil and Gas Industry Contextual Report.
- Extractive Industries Transparency Initiative (EITI) – Guidance on Transportation Revenues.
