Senate panel probes alleged $71.65m, N30.7bn unpaid oil firms’ contributions to NDDC

The Senate Committee on the Niger Delta Development Commission (NDDC) has initiated an inquiry into claims that certain international oil companies have not fulfilled their legal obligation to remit statutory contributions to the commission. The probe began on Friday after a petition was filed by environmental activist Mathew Echo, alleging that Aiteo Exploration and Production Company Limited, renamed Nembe Exploration and Production Company Limited, owes the NDDC approximately $71.65 million and N30.7 billion in unpaid contributions since 2021. The committee's opening session marked the beginning of a formal examination into these financial discrepancies. The investigation follows a petition submitted by Mr. Echo, who highlighted the ongoing failure of some oil firms to meet their statutory responsibilities under Section 2(p) of the NDDC Act. This section mandates that oil companies operating in the Niger Delta must contribute three percent of their annual operating budgets to the commission. According to Mr. Echo, this non-compliance has severely hampered the NDDC’s ability to fund essential development initiatives, leading to delayed projects, unpaid contractors, and hindered environmental recovery efforts in the region. During the hearing, the committee chairman, Senator Asuquo Ekpenyong, emphasized the seriousness of the allegations and assured stakeholders that the investigation would be thorough. He instructed Aiteo Exploration and Production Company Limited to appear before the committee during its next meeting, which is set to take place within two weeks. Additionally, he ordered the NDDC to provide a detailed list of oil companies that have defaulted on their contributions, along with information on the steps taken so far to recover the owed amounts. Established in 2000, the NDDC was created to address the developmental challenges faced by the Niger Delta, a region central to Nigeria’s oil production yet plagued by environmental degradation, poverty, and poor infrastructure. The commission is tasked with overseeing development in key areas such as transportation, education, health, housing, energy, water supply, agriculture, and environmental protection. Its operations involve coordination with federal, state, and local governments to ensure holistic regional progress. Funding for the NDDC comes from multiple sources, including annual federal allocations, contributions from oil companies, ecological funds, and grants. The requirement for oil companies to contribute three percent of their operating budgets is a core component of this funding model. However, according to Mr. Echo, many companies have consistently avoided fulfilling this duty, leaving the commission with insufficient resources to implement necessary interventions. In response to the petition, the Managing Director of the NDDC, Samuel Ogbuku, confirmed that several international oil companies had indeed failed to remit their statutory contributions. While the exact figures were not disclosed, his statement aligned with the allegations presented by Mr. Echo. Mr. Ogbuku expressed concern over the impact of these defaults on the commission’s operational capabilities and stressed the need for strict enforcement of compliance measures. The NDDC’s role extends beyond mere financial management; it is also responsible for environmental restoration and community development in the Niger Delta. With nine oil-producing states, Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers, the region remains a focal point for both economic activity and social challenges. The commission’s inability to secure consistent funding threatens its effectiveness in addressing these issues. As the Senate committee moves forward with its investigation, it is anticipated that further details will emerge regarding the extent of non-compliance and potential remedies. The involvement of regulatory bodies such as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is expected to play a crucial role in enforcing adherence to the legal requirements. The outcome of this probe could have significant implications for the future of the NDDC and the broader development agenda in the Niger Delta.