…Communities Raise Alarm Over Activities of NAPIMS

By Daniel Abia, Port Harcourt

The Community Development Committees (CDC) of oil and gas producing areas in the Niger Delta have commended President Bola Ahmed Tinubu for initiating actions aimed at rescuing Nigeria’s oil and gas sector from collapse due to alleged widespread corruption.

In particular, the group lauded the ongoing probe of former top management staff of the Nigerian National Petroleum Company Limited (NNPCL), expressing hope that the initiative would reposition the company for optimal productivity and economic growth.

In a statement issued in Port Harcourt on Monday, Joseph Ambakederimo, Chairman of the CDC Board of Trustees, called on the Economic and Financial Crimes Commission (EFCC) to extend its investigation to the activities of the Nigerian Petroleum Investment Management Services (NAPIMS)—now Nigeria Upstream Investment Management Services (NUIMS)—under the previous management.

Ambakederimo emphasized that the EFCC’s investigation into the recently dismissed NNPCL executives would be incomplete without probing the former leadership of NAPIMS. He described NAPIMS as the backbone of Nigeria’s oil industry, adding that transparent oversight of International Oil Companies (IOCs) could significantly boost daily crude oil production from both land and offshore assets.

“It is an open secret that during the tenure of the past NUIMS leadership, daily crude oil production did not increase, despite billions of dollars reportedly spent on various projects. This stagnation was allegedly due to blatant corruption, manipulation of tender processes, and the deliberate frustration of contractors and operators,” Ambakederimo stated.

He referenced revelations from a whistleblower in 2022, which detailed over ten alleged instances of fraud and abuse of office by the previous NAPIMS leadership. “We have summarized the concerns raised by the whistleblowers, and original documents and emails will be submitted to the EFCC to facilitate a full investigation and prosecution,” he added.

According to Ambakederimo, the whistleblower accused the former management of inflating annual cash call budgets and recommended a forensic audit into potential financial reporting misconduct.

“The whistleblower also alleged inflated crude oil handling charges—up to $4 per barrel more than actual costs—which were included in Joint Venture budgets,” he noted.

Additional allegations include procurement fraud in both ongoing and completed tenders, the award of a drillship contract at grossly inflated rates, and the intentional delay and obstruction of contract extensions for existing drilling operations.

The CDC is calling for a comprehensive investigation into all the issues raised by the whistleblower. Ambakederimo stressed that holding defaulters accountable would restore investor confidence in Nigeria’s oil and gas sector, which has suffered stagnation for nearly two decades.

To ensure accountability, he confirmed that a formal class action petition has been submitted to the EFCC. “If the EFCC fails to act expeditiously on our petition, we will be left with no choice but to seek legal redress and enforce a writ of mandamus,” he warned.