Police SFU probes alleged billions of dollars fraud in Nigeria’s oil, gas sector

The Police Special Fraud Unit, SFU, Ikoyi, Lagos, has opened investigations into alleged financial fraud running into billions of dollars in Nigeria’s oil and gas industry.

The investigation was reportedly triggered by complaints from concerned Nigerians and intelligence gathered by various networks over alleged fraudulent activities described as potentially one of the biggest scams in the country’s oil and gas sector.

One of the cases being examined by the unit followed a petition submitted by an anti-corruption organisation over the alleged inflation of a contract by more than $90 million.

However, sources said the investigation had unsettled some individuals allegedly linked to the matter, who were said to be making efforts to frustrate the process, including filing petitions against the Commissioner of Police overseeing the SFU and some officers handling the case.

Sources further alleged that investigators refused to accept bribes allegedly offered by a major participant in the suspected fraud. The individual was subsequently said to have resorted to blackmail and petitioned the Police Service Commission, PSC, against the unit.

The development reportedly prompted the PSC to invite the Commissioner of Police in charge of the SFU to explain the operations and activities of the unit under his leadership.

According to sources, a non-governmental organisation, NGO, whose name was withheld, has threatened to petition the National Assembly and the United States Senate should there be any attempt to halt the investigation.

The NGO reportedly raised the alarm because of alleged links between some of the companies being investigated and the United States.

Sources said the organisation had also threatened a confrontation with the PSC, arguing that the commission should not interfere with the operational responsibilities of the police.

The group reportedly maintained that the PSC should concentrate on matters relating to the promotion of police officers and disciplinary action against erring personnel, rather than interfering with ongoing investigations.

It also reportedly insisted that police investigators should be allowed to conduct their duties without undue interference.

The NGO was quoted as saying: “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.”

According to sources, the organisation believes that unnecessary interference in police investigations has weakened the force and undermined its effectiveness in tackling financial crimes and other criminal activities.

The NGO was said to be closely monitoring the development and insisting that the investigation be allowed to run its full course.

Another major case reportedly being handled by the SFU involves an alleged $617 million fraud linked to an indigenous oil company.

Sources said the company was awarded a project in 2018 aimed at increasing crude oil production. In the same year, an expansion contract was allegedly awarded to the company despite the fact that work on the initial project had reportedly not commenced.

The investigation was said to have uncovered allegations that some vendors engaged for the project were companies allegedly owned by the promoter of the indigenous oil firm.

Sources alleged that the promoter was behind the expansion contract and diverted the funds through what was described as a cash call.

The allegedly diverted money was reportedly distributed among some officials and the company, according to sources.

The indigenous oil company was also accused of under-reporting its crude oil production, a development that sources said had resulted in the loss of government revenue.

Meanwhile, sources said the SFU was preparing to commence an investigation into alleged crude oil theft worth more than $3 billion, although details of the case were not immediately available.

Sources attributed the growing number of cases before the SFU to the experience and professional background of CP Eloho Edwin Okpoziakpo, who assumed leadership of the unit.

Some officers who spoke to reporters described the SFU as one of the police’s leading units in the investigation of economic and financial crimes.

They said the Inspector-General of Police made the right decision by deploying an experienced investigator to head the unit, adding that the impact of the unit’s activities was becoming increasingly noticeable.

The officers challenged reporters to visit the SFU and assess the efforts being made by Okpoziakpo to reposition the unit as a determined, people-oriented, thorough, proactive and intelligence-driven outfit.

The Inspector-General of Police and the Commissioner of Police overseeing the SFU could not be reached for comments on the investigations.

However, sources said the unit had obtained official approval from authorities in Abuja to pursue its investigations effectively and in a result-oriented manner.

The approval reportedly followed directives from the IGP that officers must not suppress or abandon fraud and criminal cases, irrespective of pressure from persons connected to the investigations.