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OML 18: EFCC probes Onajite Okoloko’s Eroton company over alleged fraud



These are not the best of times for EROTON Exploration and Production Company Ltd owned by Delta-born billionaire, Onajite Okoloko as the Nigerian National Petroleum Company Ltd (NNPCL) is said to have taken over the management of Oil Mining License 18 from the firm.

According to a report by TheWhistler, the take over of OML 18 by the NNPC follows an alleged discovery of the mismanagement of the oil asset by Eroton.

OML 18 is an oil-producing block covering 1,035 square kilometers located south of Port Harcourt and contains eleven oil and gas fields with about 714 MMSTB of oil and condensate and 4.7Tcf of natural gas reserves. Eight fields have been developed, but only four are currently producing. They are Cawthorne Channel, Awoba, Akaso, and Alakiri.

In 2014, EROTON acquired the 45 per cent interest previously owned by Shell (30 per cent), Total (10 per cent), and NAOC (5 per cent) in the then OML 18 NNPC -SPDC JV.

Subsequently, in 2018, EROTON farmed-out equity to Sahara Field Production Limited (16.20 per cent) and Bilton Energy Limited (1.80 per cent). Subsequent to the equity acquisition, EROTON Exploration and Production Company became NNPC Ltd ‘s Joint Venture partner on the OML 18 NNPCL-Eroton JV, and the company was designated as the Operator in accordance with relevant provisions of the Joint Operating Agreement between the parties.

It was learnt that over the years, there have been several concerns over the way and manner the block is operated by EROTON, mostly bothering on transparency of procurement processes, confidence in reported production numbers, transparency of matching cash call payments and administration of JV partners’ funds.

The newspaper reports that in a bid to determine a true and impartial state of affairs and in accordance with clauses 2.2.11, 4.1.1, 6.6 -6.8 of the Joint Operating Agreement, the Management of NNPC Ltdvappointed two Auditors – Messrs KPMG and Tamuno George & Co in July 2020, to carry out a forensic audit on the JV operations.

The forensic audit covered areas of budget process and implementation, governance and compliance and possible collusion with third parties.

In the Audit Report of Tamuno George & Co of July 2020, the Audit Firm discovered that the expenses incurred by the company were excessive and over inflated.

For instance, the Audit Report revealed that two travel and tour contracts awarded to Dees Travels & Tour, and Silhouette Travels and Tours at N300,000,000 both totaling N600,000,000 on call-off basis from 1st Nov 2019- 31st May 2020 appear exorbitant and negates the accounting processes of the company.

The Auditors stated further that travel and tour expense paid for in 2019 (N798,631,103.78); 2018 (N389,495,871.86); and 2017 (N382,984,561.02); whose invoices were provided by EROTON to prove genuineness of travel and to expenses from vendors could not be supported with official receipts.

The Audit Report added, “Travel and tours expenses are excessive and inflated without arm’s length transaction.

“The N38,000,000 contract for Christmas Gift Cards in 2019 awarded to Artee Industries Limited is excessive and not at arm’s length.

“The sum of N439,255,269.49 was paid to Oilserv as an advancement in respect of 30 per cent pipeline installation of N1,169,182,468.20 (EROTON’ s purchase Order)/ $12,001,512.89 (Oilserv Invoice) without specifying the 30 per cent was calculated on purchase order or invoice.

“Oilserv limited was paid N439,255,269.49 for services rendered portrays some elements of compromise and casts doubt on the true value of the contract.”

With similar concerns about the mismanagement of the oil assets by EROTON, findings revealed that another partner in the Joint Venture, Sahara Energy, in a letter dated 21st October 2021, petitioned the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), alleging persistent mismanagement of operations of OML 18 by the Company.

Sahara Energy also wrote the NNPC In a letter dated January 10,2020 raising the alarm about the mismanagement of the OML 18 by EROTON.

As soon as the petition got to the Nigerian Upstream Petroleum Regulatory Commission, the commission quickly constituted a committee to investigate the allegations on EROTON to determine the veracity or otherwise of these allegations.

It was learnt that upon the conclusion of their preliminary investigation, the outcome also indicated mismanagement of the asset by EROTON.

NUPRC was said to have confirmed EROTON’s default in making statutory payments (Oil Royalty, Gas Sales Royalty, Gas flare payments, and Concession rentals), award of contracts to unapproved vendors without recourse to due process.

The regulator also confirmed the sale of gas to a related company without the JV partners’ approval, a valid Gas Sales Agreement, and a proper revenue remittal and accountability framework.

In the letters, Sahara Energy requested for the intervention of NUPRC and the NNPC to avoid catastrophic outcomes for the OML 18 JV partners, the Federal Government, the local communities and the environment.

In the letter to NNPC, Sahara Energy alleged that EROTON has continued to act with impunity, adding that it had become imperative to take decisive steps to ensure compliance, by EROTON, with due processes in order to assure prudent management of the OML 18 asset.

The letter, addressed to the NNPC Group Managing Director which was the former nomenclature of the current Group Chief Executive Officer reads, “Sir, we had specifically informed you that EROTON has continuously failed to officially invite Sahara or frustrated attendance at various meetings at which the 2020 Budget were discussed.

“We thought it useful to express some of our grave reservations (which we have severally – follows:

“Following interactions (at Sahara’s insistence) between Sahara and EROTON with a view to streamlining the 2020 budget and reducing costs, the said budget costs were only partially reduced to $412m from the in initially proposed $517,650,000) even though EROTON could justify only US$205m aggregate expenditure.

“Also, EROTON’s proposed 2020 budget sum of USS412,000,000 (with a view to attain increase in production) is unsupported by tenable underlying technical facts. Thus to provide supporting information to justify $205,000,000 production and evacuation facilities which yields the same desired increase in the production for the asset). This is the amount Sahara is willing to accept despite the fact that the asset, on its own (including the anticipated new production can only support $177,000,000 expenditure.

“Despite repeated requests from Sahara, EROTON is unable to provide any tangible explanations for how it intends to fund this budget cashflow deficit nor has provided any tenable supporting information for the $207,000,000 proposed expenditure above the U$205,000,000 portion of the proposed budget that it has supported.

“Despite numerous requests from Sahara as it is entitled to do pursuant to the OML 18 JOA for EROTON to render account of its stewardship of OML 18 and how it expended monies on behalf of Sahara in the period when EROTON held Sahara’s interest in OML 18 in trust, EROTON has failed to render such account and has instead ignored Sahara’s request for an account of its stewardship.

“It has become glaringly obvious that the asset is being run as a ‘family business’ with very poor governance structures, a total lack of transparency and total lack of value for money for expenditure.”

Following the letter by Sahara Energy, NUPRC constituted a committee to investigate the allegations on EROTON to determine the veracity or otherwise of these allegations.

NUPRC’s investigation revealed that EROTON defaulted in making statutory payments on Oil Royalty, Gas Sales Royalty, Gas flare payments and Concession rentals that fell due in excess of $30,151,491.40 and N210,946,398.17 as of December 2021 which remained unpaid.

It was also revealed that the Audit exercises carried out by NNPC Ltd Internal and appointed External Auditors indicated the award of contracts to unapproved vendors without recourse to due process, amongst several other compliance-related issues.

EROTON has also been selling gas to a related company without the JV partners’ approval, a valid Gas Sales Agreement and proper revenue remittal and accountability, despite several requests by the JV parties.

This action contravenes the provisions of the JOA. It was revealed that NNPCL has initiated reconciliation exercises with EROTON to recover all outstanding unremitted revenue due to the federation from NNPCL’s 55 per cent equity.

As at the last reconciliation of non-remitted proceeds from gas sales, EROTON had sold 46.19 BSCF of gas and is yet to remit NNPCL’s share of the revenue, amounting to a total of $36.88m.

Further findings revealed that from 2016 to date, OML18’s net crude production has significantly fallen from about 30,000 barrels per day to less than 1,000 barrels per day despite the JV Partner’s consistent cash call payments over the same period.

Asides from the insecurity-related impact on the corridor of OML 18 operation, the newspaper reports that that there has been the persistent issue of poor implementation of the JV-approved work programs, including the Alternative Crude Oil Evacuation Project.

EROTON is also said to have been heavily indebted to contractors making it challenging to secure service providers in addition to the financial exposure to the JV.

Other infractions include the non-remittance of domestic gas revenue to joint venture partners, default on tax obligations, and shut-in of production for the last 18 months.

NNPC Writes EFCC, Demands Probe Of EROTON OML 18 Mismanagement

Following the Audit exercise initiated by NNPC Ltd, it was gathered that the management of the National Oil Company wrote several letters to EROTON to resolve the underlying commercial and operational issues.

The NNPC had also commenced appropriate steps to invoke relevant provisions of the JOA to remedy this operational malady of OML 18.

In a letter to the EFCC seen, the NNPC stated that, “While we continue to find solutions within our sphere of influence, We kindly request that the EFCC carry out an independent, in-depth investigation into the allegations against Eroton in the interest of the JV and the Nation at large.”


Eroton Reacts, Denies Allegations

EROTON has however denied the allegations stressing that it was not involved in any wrongdoings and it still controls OML 18.

The company stated that it was false for a section of the media to claim that the Nigerian National Petroleum Company Limited had taken over the operatorship of OML 18.

“First, it is important to state that Eroton remains the Operator of OML 18. The issue of operatorship of OML 18 is a contractual one and is governed by the joint operating agreement among participating entities,” the company said.

“We wish to inform the public and our partners that in discussing any change of the operator under the joint operating agreement, there is a clearly defined process, which has not been followed.

“Therefore, any purported change by any other party is nullity ab-initio and without any effect whatsoever,”
It argued that the media publication falsely utilised incorrect information to accuse Eroton of various infractions.

“We wish to clarify and state that these allegations are baseless and unfounded and, as stated above, the due process of the law in line with the joint operating agreement and the rule of law has been breached in the futile attempt to displace the valid and subsisting operator of the joint venture.

“Furthermore, we would like to make it clear that any lack of production from OML 18 alluded to in the false reporting, has been primarily due to the unavailability of Nembe Creek Trunk Line in the last two years and not to any production issues suffered by Eroton,” the firm stated in a statement that was made available to journalists on Sunday.

“The firm said it was also pertinent to note that this was an industry wide problem due to notorious crude theft and sabotage of pipelines in the Niger Delta, stressing that this was a notorious and widely known fact.

“Eroton categorically denies any fraudulent act as stated in the false report in the operations of OML 18, as all issues are contractual and therefore has nothing to do with the jurisdiction of Economic and Financial Crimes Commission as contained in the false reporting,” it stated.

“We would like to stress that Eroton remains the operator of OML 18 despite the attempts of forced displacement of some Eroton staff from our Alakiri Gas Plant on February 24, 2023, by armed and unknown men who claimed to be representatives of the other JV partner, Sahara.

“They acted without the due process of law and in total breach of the terms and conditions as stipulated in the joint operating agreement.

“Eroton remains committed to transparency, integrity and due process, and urges the general public and stakeholders to disregard any misinformation as we continue to operate in compliance with all applicable laws and regulations.”

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Dozie Mmobuosi’s Tingo Group: Fake Farmers, Phones, and Financials—The Fraudulent Nigerian Empire That Never Existed……Part 1



Tingo Group is a holding company that claims to operate primarily in Nigeria in multiple business segments, including (i) food processing and sales (ii) mobile handset sales & leasing and (iii) an online food marketplace called “Nwassa”. The company has a fully diluted market capitalization of ~$1.5 billion as of this writing, with a recent peak market value of $3 billion as of May 22nd, 2023.

The company first went public in August 2021 on the OTC market through a reverse merger with a Thai company that originally intended to acquire a third-tier crypto exchange.

In December 2022, the company entered the Nasdaq by closing another reverse merger with a listed Chinese fintech company. The company was renamed Tingo Group Inc and the ticker changed from MICT to TIO on February 27, 2023.

Tingo was founded in 2001 in Nigeria by “Dozy” Mmobuosi, who currently serves as the CEO of Tingo Group Holdings, the group’s key holding company entity. He has gained international attention, gracing the cover of GQ Africa in December 2022.
Regularly described by media as a billionaire, Dozy made further waves in February 2023 when he attempted to buy Sheffield United, an English football team recently promoted to the Premier league. The deal stalled over questions about whether Dozy’s financial resources were genuine.

Part I: Red Flags In Dozy’s Background

Tingo Group Holdings CEO “Dozy” Mmobuosi Appears To Have Fabricated His Biographical Claim To Have Developed The First Mobile Payment App In Nigeria
We Contacted The Actual Creator Of The App Who Called Dozy’s Claim “A Pure Lie”
Despite his claims to be a successful billionaire entrepreneur, we found numerous red flags related to Dozy.

In a May 2020 interview, Dozy told a detailed origin story of what would later serve as a key biographical claim; how, in 2002, he developed the first mobile payment platform in Nigeria. Per the story, he partnered with a bank on the venture after he couldn’t find an easy way to send money to his brother.

At the end of the interview, Dozy claimed he could not mention the product or the bank due to confidentiality reasons:

“Understandably, I can’t mention the product or the bank in question for the sake of confidentiality.”

The lack of disclosure of the mere name of a company built and sold over 15 years ago runs contrary to the norm for essentially every other successful startup founder’s story.

Regardless, his reticence to disclose the name of the app seems to have gone away. The Tingo website now claims Dozy helped launch Nigeria’s first SMS banking solution called “Flashmecash”. Per the website:

“In 2002 he (Dozy) led the design and launch of Nigeria’s first SMS Banking Solution (Flashmecash), later sold to FMCB who still use it today.”

We reached out to Flashmecash’s actual creator, Deji Oguntonade, whom we verified as the inventor via check of Flashmecash’s patent, along with web searches. He informed us that Dozy’s claims were “totally false” and shared a WhatsApp post he wrote to Nigeria’s top fintechs and regulators making clear that Dozy’s claims were a “pure lie”.

The post provided a detailed background on the app, which Oguntonade reiterated had no connection to Dozy.

Dozy Claimed To Have Received a PhD In Rural Advancement From Malaysian University UPM In 2007
We Contacted UPM To Verify The Degree. They Wrote Back Saying No One By His Name Was Found In Their Verification System
In his Tingo biography, Dozy claimed to have received a PhD in Rural Advancement from Malaysian university UPM in 2007. We contacted the school to confirm this credential. An administrator in the graduate studies department confirmed that the database has records from 2007 and earlier, but that Dozy’s name, including several variations we tried were “not found for verification”.

In 2017, Dozy Was Arrested And Faced An 8-Count Indictment Over Issuance Of Bad Checks, According To The Nigerian Economic And Financial Crimes Commission
In 2017, Dozy was arrested in Nigeria and faced 8 charges including conspiracy, obtaining by false pretense and issuance of approximately U.S. $70,000 in bad checks, according to the Nigerian Economic and Financial Crimes Commission. The case was later settled in arbitration, according to local media and company filings.

In 2019, Dozy Claimed To Launch “Tingo Airlines” And Posted Social Media Messages Encouraging Customers To “Fly With Tingo Airlines Today”
Media Outlets Uncovered That Tingo Had Photoshopped Its Logo On Pictures Of Airplanes. Dozy Later Admitted To Never Owning Any Actual Aircraft
In August 2019, Dozy launched Tingo Airlines, which declared share capital of £1 billion, according to UK company records.

Per reporting by The Athletic, November 2020 Facebook messages urged customers to “fly with Tingo Airlines today”.

The company also had an Instagram page where it posted photoshopped pictures of planes with a Tingo logo on them. The page was removed after observers noticed that the planes had too many windows and were missing a door, owing to a poor photoshop job.

In 2019, Dozy Claimed To Launch “Tingo Airlines” And Posted Social Media Messages Encouraging Customers To “Fly With Tingo Airlines Today”
Media Outlets Uncovered That Tingo Had Photoshopped Its Logo On Pictures Of Airplanes. Dozy Later Admitted To Never Owning Any Actual Aircraft
In August 2019, Dozy launched Tingo Airlines, which declared share capital of £1 billion, according to UK company records.

Per reporting by The Athletic, November 2020 Facebook messages urged customers to “fly with Tingo Airlines today”.

The company also had an Instagram page where it posted photoshopped pictures of planes with a Tingo logo on them. The page was removed after observers noticed that the planes had too many windows and were missing a door, owing to a poor photoshop job.
In April 2023, Tingo’s Co-Chairman Wrote A Public Letter To Dozy, Filed With The SEC, Saying He Could Not Approve The Company’s Annual Report And Felt It “Necessary To Recuse Myself By Resigning” Due To “Many Critical Questions, Comments And Recommendations” That Went “Unanswered And Unheeded”
In September 2021, Christophe Charlier was named co-Chairman of Tingo Inc., tweeting at the time that he was “excited” to work toward “transforming rural farming communities.”

However, less than 2 years later, in April 2023, Charlier resigned suddenly, stating in a letter addressed to Dozy and filed with the SEC:

“I have made numerous efforts to implement best corporate governance practices…Despite my efforts…many critical questions, comments and recommendations which I have sent to management and the Board have once again remained unanswered and unheeded. As a result, I will not be in a position to approve the 10K for 2022 prepared by management and feel it necessary to recuse myself by resigning from the Board”

To Be Continued…………….

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EFCC quizzes ex-Women Affairs Minister Pauline Tallen over N2 billion fraud




The Economic and Financial Crimes Commission (EFCC) on Friday quizzed the former Minister of Women Affairs, Pauline Tallen, over alleged fraud.

A source close to the commission said the ex-minister, who arrived at the Abuja zonal command of the commission on invitation at noon, was still being grilled by investigators of the commission till late Friday night.

Though details of the allegations against the ex-minister were sketchy, a source familiar with the case informed that it bordered on alleged corrupt enrichment to N2 billion.

Part of the money was allegedly diverted from the African First Lady Peace Mission Project.

The spokesman of the commission, Wilson Uwujaren, could not be reached for confirmation.

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Gov. Makinde Appoints Perm. Secs, Accountant General, Executive Secretaries 




Governor Seyi Makinde has approved the appointment of Kikelomo Adijat Adegoke as the substantive Accountant General of Oyo State.




The Head of Service, Mrs. Olubunmi Oni mni, made this known in a statement on Friday in Abuja.




Oni said the appointment took effect on Thursday, May 26, 2023.




The Oyo State Governor has also approved the appointment of eleven Permanent Secretaries in the civil service.




The Permanent Secretaries include: Dr. Olabode Ladipo; Dr. Oyewole Tunde Aremu; Abosede Esther Owoeye; Ismail Abass Adebukola Bioku; Folajinmi Daramola Oni; Dolapo Oluremilekun Popoola; Hakeem Toyin Salami; Tajudeen Raji; Paul Amole Okunloye Oyekunle; Bassir Kolawole Kazeem and Taiwo Olafimihan Adewale.




Governor Makinde also appointed two Executive Secretaries. They include Olusola Orobode and Muibat Olaide Lasisi.




The Head of Service said the appointments came as a result of thorough screening and outstanding performance of the affected officers.

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