Nigeria Extractive Industries Transparency Initiative Awards Contracts Worth Over N78 Million to Tax-Evading Company Owned by Nigerian Politician, Tajudeen Audu Abdulkadir

Secrets Reporters

An investigation has uncovered that the Nigeria Extractive Industries Transparency Initiative (NEITI) has awarded several multimillion-naira contracts totaling ₦78,220,416.00 to a company owned by Tajudeen Audu Abdulkadir, a Nigerian politician and former chieftain of the All Progressives Congress (APC). 

Tajudeen, who defected to the Social Democratic Party (SDP) in 2022 to contest the Kwara State Governorship, has been linked to these contracts through political influence rather than merit.

A source within NEITI, who preferred to remain anonymous, disclosed that the contracts awarded to Tajudeen Audu Abdulkadir’s company, Taju Audu & Company, could have been influenced by his political connections. This raises concerns about the integrity of NEITI’s contract awarding process, especially given the organization’s mandate to promote transparency and accountability in Nigeria’s extractive industries.

NEITI, established as the Nigerian arm of the global Extractive Industries Transparency Initiative (EITI), is a Federal Government agency that reports directly to the President and the National Assembly. Its mission is to ensure transparency in the management of payments made by extractive industries to the government. However, the awarding of contracts to a tax-evading company contradicts this mission and undermines public trust in the agency.

Taju Audu & Company, incorporated on February 9, 2006, with registration number 2006184, has been identified as a tax-evading entity according to Corporate Affairs Commission (CAC). The company’s registered office is located at No. 5 Asuez Crescent, Wuse Zone 4, Abuja. Awarding contracts to a company that does not fulfill its tax obligations is not only unethical but also illegal under Nigerian law.

The Nigerian tax laws, specifically the Companies Income Tax Act (CITA), mandate all companies operating within the country to pay taxes on their earnings. Section 19 of the CITA stipulates penalties for companies that evade tax, including fines and imprisonment for responsible officers. Furthermore, the Public Procurement Act 2007 prohibits the awarding of contracts to companies that do not comply with tax regulations.

It is suspected that the contracts awarded to Taju Audu & Company were a deliberate diversion of funds to political cronies. This practice is not only a violation of the Public Procurement Act but also a breach of the Code of Conduct for Public Officers, which mandates public officers to avoid conflicts of interest and to act in the public interest.

The Public Procurement Act 2007, under Section 16(6), explicitly prohibits the award of contracts to companies with a history of poor performance or non-compliance with tax obligations. The act aims to promote transparency, competition, and accountability in public procurement.

In 2022, the Federal Government inaugurated a 15-member governing board of NEITI to enhance the smooth running of the agency. The board, chaired by Olusegun Adekunle, former Permanent Secretary in the Office of the Secretary to the Government of the Federation (SGF), is responsible for ensuring that NEITI adheres to its mandate of transparency and accountability.

Report on Transactions by NEITI to Taju Audu & Company

On July 29, 2022, the Nigeria Extractive Industries Transparency Initiative (NEITI) paid ₦15,810,048.00 to Taju Audu & Company for the payment of 30% for the final report and 10% submission of working papers for the 2020 OGA. Payment #1000964019-7, Payer Code: 0111011001.

On June 2, 2021, the Nigeria Extractive Industries Transparency Initiative (NEITI) paid ₦5,928,768.00 to Taju Audu & Company for the payment of 15% for signing the contract for the 2020 OGA. Payment #1000802599-7, Payer Code: 0111011001.

On July 13, 2021, the Nigeria Extractive Industries Transparency Initiative (NEITI) paid ₦5,928,768.00 to Taju Audu & Company for the payment of 15% for the inception report for the 2020 OGA report. Payment #1000821037-12, Payer Code: 0111011001.

On September 21, 2023, the Nigeria Extractive Industries Transparency Initiative (NEITI) paid ₦13,790,082.00 to Taju Audu & Company for the payment for the submission of 30% draft report for the 2021 oil & gas audit. Payment #1001098324-17, Payer Code: 0111011001.

On December 7, 2023, the Nigeria Extractive Industries Transparency Initiative (NEITI) paid ₦5,330,000.00 to Taju Audu & Company for reimbursement payment for the 2021 oil and gas audit. Payment #1001127640-12, Payer Code: 0111011001.

On December 7, 2023, the Nigeria Extractive Industries Transparency Initiative (NEITI) paid ₦12,839,000.00 to Taju Audu & Company for 30% of the professional fee upon submission of the final report and 10% of working papers for the 2021 oil & gas report. Payment #1001127640-33, Payer Code: 0111011001.

On December 30, 2023, the Nigeria Extractive Industries Transparency Initiative (NEITI) paid ₦11,156,250.00 to Taju Audu & Company for research & development (establishment of extractive industries data center project, data NASS engagements & public hearings, production of 750 copies of final industry audit reports). Payment #1001142864-18, Payer Code: 0111011001.

On August 4, 2024, the Nigeria Extractive Industries Transparency Initiative (NEITI) paid ₦7,437,500.00 to Taju Audu & Company for the production of the NEITI 2021 oil & gas report in respect to the request of the honorable members of the NASS. Payment #1001202345-1, Payer Code: 0111011001.

Efforts to reach NEITI at the time of writing this report were unsuccessful as mail sent to their email address was not responded to.