EFCC boss raises alarm over opaque financial reporting in Nigeria’s oil, gas sector

By Christiana Ekpa

The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has raised alarm over persistent opacity in Nigeria’s financial reporting system, particularly within the oil and gas sector, warning that the lack of transparency continues to undermine national development and public trust.

Speaking at a National Conference on Public Accounts and Fiscal Governance organzied by the Senate and House of Representatives Public Accounts Committees (PACs) in Abuja on Tuesday, Olukoyede said that speculative earnings, unverified transactions, and poor oversight in critical sectors like oil and gas have entrenched inefficiency and corruption in public finance.

“Opaque financial reporting, especially in the oil and gas sector, where earnings remain speculative rather than factual, is one of the most disturbing vulnerabilities in our system. These weaknesses feed corruption and erode public trust,” he said.

The EFCC boss, who was represented by the Agency’s Director of Public Affairs, Wilson Uwujaren, went further to highlight several loopholes that continue to threaten Nigeria’s fiscal integrity to include non-compliance with financial regulations, approval of spending beyond official limits, diversion of public funds to private accounts, and the padding of budgets to accommodate projects with no real developmental value.

He also cited digital manipulation of government platforms such as the Government Integrated Financial Management Information System (GIFMIS) and the Integrated Payroll and Personnel Information System (IPPIS), which have become tools for payroll fraud in some Ministries, Departments and Agencies (MDAs).

“Despite years of reforms and development plans, the gap between policy intent and public impact remains wide. We must move from paper reforms to institutional enforcement,” Olukoyede lamented.

While reiterating the Commission’s core mandate of investigation and prosecution, Olukoyede said the EFCC is now equally focused on prevention.

He revealed that in the past 18 months, the agency has taken strategic steps to strengthen internal controls across the public sector.

Key among these efforts is the creation of a Fraud Risk Assessment and Control Department, tasked with identifying and sealing off fiscal loopholes in MDAs. Additionally, the Commission has enhanced its collaboration with both local and international enforcement bodies to curb illicit financial flows.