Reports

EXCLUSIVE: NCDMB Under Felix Ogbe Faces ₦221m Diesel Procurement Scandal as ₦42.5m Contract Goes to Company Registered Three Weeks Later

 

TRACKNEWS ONLINE | INVESTIGATIVE DESK

The Nigerian Content Development and Monitoring Board (NCDMB), under its Executive Secretary, Felix Omatsola Ogbe, is facing questions over diesel procurement contracts worth millions of naira, including an alleged ₦42.5 million contract awarded to a company three weeks before its official registration.

An investigation by NaijaonpointOnline has uncovered details of five diesel procurement transactions reportedly worth a combined ₦221,050,022 between February and April 2024, raising questions about procurement transparency, competition, pricing and the eligibility of companies that received the contracts.

The transactions involved the purchase of automotive gas oil (AGO), commonly known as diesel. According to the procurement records reviewed by NaijaonpointOnline, each of the five purchases was recorded with a single tenderer, raising questions about the level of competition and the justification for the procurement methods adopted.

The findings also reveal substantial price differences between diesel purchased through NCDMB’s reported supply channel, NNPC Retail, and two private vendors that received contracts during the same period.

NCDMB PAID PRIVATE VENDORS MORE THAN TWICE ITS OWN SUPPLY PRICE

One of the major issues uncovered by the NaijaonpointOnline investigation is the difference between the prices paid to NNPC Retail and those paid to private vendors.

On February 1, 2024, NCDMB reportedly purchased diesel from NNPC Retail at ₦1,042 per litre. By April 16, 2024, the price paid through the same channel had risen to ₦1,460 per litre.

However, during the same period, the Board reportedly paid Landsworld Integrated and Logistics Services Ltd and Ebiatoru Global Services ₦2,126 per litre for the same commodity.

The reported private-vendor price was more than double the February price paid through NNPC Retail and approximately 46 per cent higher than the April price.

The disparity raises questions about how the Board determined its procurement prices, whether alternative suppliers were adequately assessed and what measures were taken to ensure value for public money.

Although market conditions, transportation, delivery arrangements and other contractual factors can influence prices, the available records do not establish whether such factors explain the reported differences.

TWO COMPANIES, IDENTICAL ₦42.5 MILLION CONTRACTS

The investigation further revealed that Landsworld Integrated and Logistics Services Ltd and Ebiatoru Global Services reportedly received identical contracts worth ₦42,525,000 each for the supply of 20,000 litres of diesel to the Nigerian Content Tower.

The contract awarded to Landsworld was dated April 16, 2024, while Ebiatoru Global Services reportedly received its award on April 30, 2024.

Both contracts involved the same quantity of diesel, the same destination and the same contract value, with only two weeks separating the reported award dates.

Each contract translates to approximately ₦2,126.25 per litre.

The similarities raise questions about how the contracts were structured, whether the procurement requirements were independently assessed and why separate awards of identical value were made for the same quantity of diesel at the same facility.

However, the similarities alone do not establish that the contracts were improperly split or that the companies had any relationship.

COMPANY REGISTERED THREE WEEKS AFTER CONTRACT AWARD

Perhaps the most significant finding in the NaijaonpointOnline investigation concerns the registration timeline of Landsworld Integrated and Logistics Services Ltd.

Corporate records cited in the investigation reportedly show that the company, registered under RC 7481780, was incorporated on May 7, 2024.

However, the company had reportedly received a ₦42,525,000 diesel supply contract on April 16, 2024.

This means the reported contract award preceded the company’s incorporation by 21 days.

The development raises a fundamental question: what legal status and documentation did the company present when it received the contract?

It also raises questions about the due diligence conducted by NCDMB before approving the award and whether the vendor satisfied the applicable eligibility requirements at the time.

The Board needs to clarify the apparent discrepancy between the contract award date and the company’s reported incorporation date.

NaijaonpointOnline notes that the timeline requires further documentary verification, including examination of the contract approval, award letter, vendor registration documents and any relevant legal arrangements that may explain the circumstances.

INACTIVE BUSINESSES ALSO LINKED TO CONTRACTS

The investigation also raises questions about the reported corporate status of other vendors identified in the procurement records.

Ebiatoru Global Services reportedly appears on the Corporate Affairs Commission (CAC) register as a business name with an inactive status.

Emily Oil and Gas Limited, registered under RC 603680, was also reportedly listed as inactive.

The company reportedly received a separate contract valued at ₦50,519,700 for six months of diesel supply to three different recipients.

Because the Emily Oil and Gas contract covered multiple recipients over an extended period and may have included additional service components, it is not directly comparable to the two 20,000-litre contracts awarded to Landsworld and Ebiatoru.

Nevertheless, the reported corporate statuses raise questions about the timing of any changes, the eligibility of the vendors when the contracts were awarded and the checks conducted by the Board.

An inactive status recorded at a later date would not, by itself, establish that a company was ineligible when it received a contract. The relevant dates and circumstances must be verified.

FIVE SINGLE-TENDERER PURCHASES RAISE PROCUREMENT QUESTIONS

The five reported transactions, valued at ₦221,050,022, raise broader questions about compliance with Nigeria’s Public Procurement Act 2007.

The law establishes principles for public procurement, including transparency, competition, accountability and value for money.

The reported use of single-tenderer procurement across all five diesel purchases raises questions about the methods used to select suppliers and whether the applicable legal conditions for those methods were satisfied.

Single-bidder procurement does not automatically establish a violation of the law in every circumstance. However, the relevant procurement records should demonstrate the legal basis for the methods adopted, the justification for selecting the vendors and the measures taken to protect public funds.

The reported price differences, identical contract values and questions surrounding the corporate status of some vendors make those explanations particularly important.

TRACKNEWS SEEKS RESPONSE FROM NCDMB LEADERSHIP

As part of its efforts to ensure fairness and give all parties an opportunity to respond, NaijaonpointOnline made attempts to reach the Executive Secretary of NCDMB, Felix Omatsola Ogbe, and other relevant officials of the Board for their comments on the findings.

However, as of the time of filing this report, our attempts to obtain their responses had not yielded any reply.

NaijaonpointOnline remains open to receiving responses, clarifications and relevant documents from the NCDMB leadership and the companies mentioned in this investigation.

Any response received will be examined and reflected in subsequent updates where necessary.

₦221 MILLION EXPENDITURE DEMANDS TRANSPARENCY

The five reported transactions involved ₦221,050,022 in public expenditure on diesel between February and April 2024.

The central questions remain:

Why were private vendors reportedly paid substantially more per litre than NNPC Retail?

Why did two companies receive identical ₦42.525 million contracts for the same quantity of diesel at the same facility, just two weeks apart?

How did Landsworld Integrated and Logistics Services Ltd reportedly receive a contract 21 days before its stated incorporation date?

What due diligence did NCDMB conduct on the companies before awarding the contracts?

What procurement procedures were followed, and what safeguards were used to ensure value for public money?

The answers should be established through documentary evidence, official explanations and, where warranted, an independent review of the transactions.

CALL FOR TRANSPARENCY AND ACCOUNTABILITY

The findings of the NaijaonpointOnline investigation warrant clear explanations from NCDMB regarding its diesel procurement practices during the period under review.

The Board’s procurement records, tender documents, contract approvals, delivery notes, payment vouchers and vendor due-diligence reports would be central to determining whether the transactions complied with applicable regulations and whether the Board received the goods and services for which it paid.

As Executive Secretary during the period under review, Felix Omatsola Ogbe faces questions about procurement oversight and the controls in place to ensure transparency and value for money.

The reported discrepancies do not, on their own, establish personal wrongdoing by Ogbe or prove that the contracts were fraudulent. Nevertheless, the issues identified deserve answers in the public interest.

NaijaonpointOnline calls for transparency, accountability and a thorough examination of the reported transactions by the appropriate oversight authorities.

Public funds must be managed responsibly, and Nigerians deserve clear explanations when procurement records raise questions about pricing, competition and the eligibility of contractors.

This investigation was conducted by NaijaonpointOnline based on the procurement details and corporate registration information reviewed for this report. The findings and allegations require verification against the underlying official records. The NCDMB Executive Secretary, relevant officials and the companies named in this report have been given an opportunity to respond; their responses had not been received at the time of publication.

TRACKNEWS ONLINE
INVESTIGATIVE DESK
Accountability. Transparency. Public Interest.