SFU probes multi-billion-dollar fraud in oil sector

By Emma Nnadozie

The Police Special Fraud Unit, SFU, Ikoyi, Lagos, has commenced investigations into alleged massive fraud running into billions of dollars in Nigeria’s oil and gas sector.
The unit reportedly began probing the alleged fraud following complaints from concerned Nigerians and intelligence networks said to have uncovered what could be one of the biggest scams in the country’s oil and gas industry.
In one of the cases, the investigation followed a petition by an anti-corruption group alleging the padding of a contract by more than $90 million.
Sources said the development had caused discomfort among some individuals who were allegedly attempting to frustrate the investigation, including through petitions against the Commissioner of Police in charge of the unit and his officers.
Sources further alleged that the team handling the case had refused to accept bribes from a major participant in the alleged fraud, who subsequently resorted to blackmailing the unit before the Police Service Commission, PSC.
This reportedly led to the invitation of the Commissioner of Police in charge of the SFU to the commission to explain the activities of the unit under his watch.
According to sources, a non-governmental organization, NGO, (name withheld), has threatened to petition the National Assembly and the American Senate if there is any attempt to scuttle the investigation, noting that the companies allegedly involved in the fraud have links to the United States.
Informed sources said the NGO had threatened a showdown with the PSC, arguing that its mandate did not extend to interfering with the operational duties of the police.
The group reportedly urged the commission to focus on promotion and disciplinary measures against erring officers.
The NGO was also said to have argued that the police should be allowed to carry out investigations without unnecessary interference.
They reportedly stated: “This cannot happen in America. If they dare interfere, we promise to take it to where the commission or anybody cannot summon any police officer to answer any question,” they stated.
According to sources, the NGO believes such interference has weakened the police and diminished its standing in the fight against criminals. It was said to be monitoring developments and insisting that the matter be investigated to its logical conclusion.
Similarly, another case reportedly under investigation involves an alleged $617 million fraud linked to an indigenous oil company.
Sources said a project aimed at boosting crude oil production was awarded to the company in 2018. In the same year, an expansion contract for the project was reportedly awarded to the same company, even though work on the original project had not commenced.
Sources alleged that the investigation had revealed that some of the project vendors were companies owned by the promoter of the indigenous oil company, who allegedly engineered the expansion contract and diverted the funds under the guise of a cash call.
The funds were allegedly shared among officials and the company, sources claimed.
The same company was also alleged to be under-declaring its crude oil production, thereby depriving the government of revenue.
In another development, sources said the SFU was preparing to investigate an alleged crude oil theft valued at more than $3 billion, although details were not immediately available.
Sources said numerous cases had been brought before the unit since the assumption of office by CP Eloho Edwin Okpoziakpo, citing his experience and pedigree.
However, officers who spoke to reporters described the SFU as a leading police unit in economic and financial crime investigations, saying the Inspector-General of Police (IGP) made the right decision by deploying an experienced investigator to head it.
They said the results of the unit’s activities were becoming increasingly visible.
The officers challenged reporters to visit the unit and assess the efforts being made by Okpoziakpo to reposition it as a determined, people-friendly, thorough, proactive and intelligence-driven outfit.
The IGP and the Commissioner of Police could not be reached for comments on the investigations.
However, sources said the unit had received official approval from authorities in Abuja to conduct its investigations effectively and in a result-oriented manner, following directives from the IGP that officers should not suppress fraud or criminal cases regardless of pressure from those involved.

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