Senate investigates oil companies owing NDDC over $71.65m and N30.7bn

The Senate Committee looking into the Niger Delta Development Commission (NDDC) has started an investigation. They are looking into claims that some international oil companies have not paid their required contributions to the commission.

The committee began the probe on Friday. A petition from environmental activist Mathew Echo sparked this action. He claims that Aiteo Exploration and Production Company Limited, now called Nembe Exploration and Production Company Limited, owes the NDDC $71.65 million and N30.7 billion in unpaid contributions from 2021.

During the hearing, the committee chairman, Asuquo Ekpenyong, promised that they would look into the claims thoroughly. He said they would involve all parties in the investigation.

Mr Ekpenyong, who is from Cross River South Senatorial District, told Aiteo Exploration and Production Company Limited to appear before the committee in two weeks. He also asked the NDDC to provide a full list of oil companies that have not paid their contributions and what they have done to recover the money.

The NDDC was set up in 2000 to tackle the problems in the Niger Delta. This area is Nigeria’s oil-producing region. Despite producing most of Nigeria's oil wealth, it still faces issues like pollution, poverty, and poor infrastructure.

The Niger Delta includes nine states in southern Nigeria: Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers.

The NDDC's job is to help develop the Niger Delta by planning and carrying out projects in important areas like transport, education, health, housing, electricity, water supply, agriculture, and environmental protection. They also work with federal, state, and local government agencies to coordinate development efforts.

The NDDC gets its funding from the federal government, contributions from oil companies, ecological funds, and grants. Oil companies must pay three percent of their annual operating budgets to support development and environmental projects.

The committee is acting on the petition from Mr Echo, who raised concerns about some oil companies not meeting their obligations to the Niger Delta.

According to Section 2(p) of the NDDC Act, oil companies in the Niger Delta must contribute three percent of their budgets to support infrastructure, environmental projects, and other initiatives.

While presenting his petition, Mr Echo pointed out that many oil companies have not paid what they owe. This lack of payment has hurt the NDDC's ability to carry out its development work.

He noted that this issue has been ongoing for years, leaving the NDDC short of funds to execute important projects.

Mr Echo added that this funding gap has led to unpaid contractors, abandoned projects, and delays in environmental cleanup in the Niger Delta. He asked the committee to investigate and called on the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and other regulators to enforce compliance and punish companies that fail to pay.

Samuel Ogbuku, the NDDC Managing Director, confirmed that many international oil companies have not paid their contributions as required by law.

He told the committee that the NDDC has tried to engage these companies, especially Aiteo Exploration and Production Company Limited, but there has not been much success.

Mr Ogbuku warned that the lack of funding has harmed the projects planned in the NDDC’s 2025 and 2026 budgets. Still, he assured lawmakers that the NDDC would keep trying to recover the unpaid contributions.

During the discussions, committee members suggested stronger actions against companies that do not pay.

Senator Adams Oshiomhole from Edo North proposed that the committee issue formal summons to these companies. This would require them to come with evidence of their remittance records.

Senator Ede Dafinone from Delta Central also suggested stricter penalties for late payments and defaults. He urged the committee to get a complete list of all oil companies that owe the NDDC.