An inquiry has been initiated by the House of Representative Committee on Local Content, under the leadership of Chairman Boma Goodhead, to look into the reported payment of $35 million, representing 40 percent equity, to a company with a registered value of 10 million naira.
The Committee raised concerns about alleged financial mismanagement by the previous management team of the Nigerian Content and Development Monitoring Board (NCDMB), led by former Executive Secretary, Simbi Wabote, for investing a total of N14 billion naira in shares of a company registered just one year prior in 2020.
It’s worth noting that the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, had criticized the former NCDMB executives for reportedly squandering around $500 million on dubious projects and loans, including the $35 million investment in the Brass modular refinery in Bayelsa State which yielded no tangible results.
During a Committee hearing with NCDMB board representatives, Hon. Boma Goodhead questioned the rationale behind awarding a $35 million contract to a company established in 2020 with a nominal capital of 10 million naira, implying potential financial irregularities.
Further discussions revealed discrepancies in disbursements made without thorough scrutiny and challenges faced post-COVID affecting project timelines. Former Director of Finance & Personnel and Chairman of the Investment Review Committee of NCDMB, Mr. Isaac Iyalla, and his Secretary Mr. Abayomi defended the council’s approval processes for contracts and fund disbursement.
Despite claims of adherence to due process, the Committee requested thorough documentation to support transactions and highlighted concerns over projects being abandoned despite substantial investments.