Senate Investigates Non-Remittance of Funds by Oil Companies to NDDC
The Nigerian Senate has initiated an inquiry into the alleged failure of international oil companies to remit a total of $71.65 million and ₦30.7 billion to the Niger Delta Development Commission (NDDC). The ongoing non-compliance is reportedly hampering development in the oil-rich region, with senators expressing concern about its long-term impact.
During an investigative hearing held in Abuja, the Senate Committee on the NDDC instructed involved parties, particularly Aiteo Exploration and Production Company Limited—now known as Nembe Exploration and Production Company Limited—to appear before the committee within a two-week timeframe. This move aims to address allegations surrounding unpaid statutory contributions required by the commission.
The committee is also seeking a detailed report from the NDDC regarding all international oil companies that have failed to meet their remittance obligations. This inquiry was prompted by a petition from environmental activist Matthew Eko, who highlighted the persistent non-compliance of Aiteo since 2021, when it was supposed to remit funds as mandated by the NDDC Act.
According to Section 2(p) of the amended NDDC Act, oil-producing firms in the Niger Delta are obligated to contribute 3% of their annual operating budget to support various development initiatives, including infrastructure and environmental remediation. Following the petition, the NDDC confirmed that Aiteo did not attend the commission’s invitation despite being notified of the proceedings.
Chairman of the Senate NDDC Committee, Senator Asuquo Ekpenyong, opened the hearing by asserting that the committee is committed to ensuring that all relevant parties receive a fair opportunity to present their cases. He acknowledged the possibility that the committee’s invitation to the company might have been issued on short notice, and he expressed willingness to consider this in favor of the absent company.
Echo, the petitioner, used this opportunity to draw attention to broader systemic issues confronting the NDDC, asserting that some oil firms routinely neglect their legal responsibilities. He further mentioned that Aiteo was reported to the Economic and Financial Crimes Commission (EFCC) in 2021 for similar infractions, with only partial recovery of outstanding debts to date.
Dr. Samuel Ogbuku, the Managing Director of the NDDC, emphasized that recovering these statutory remittances has been a significant challenge, despite previous negotiations with the company. He articulated the urgency of this issue by highlighting that the funds in question are fundamentally public resources intended for the development of the Niger Delta region.
Ogbuku also pointed out that delays in receiving federal allocations have compounded the commission’s funding issues, undermining its capacity to address pressing developmental needs in the region. Echoing sentiments of legislative oversight, former Edo State Governor Senator Adams Oshiomhole questioned the rationale behind negotiation requirements for compliance with statutory obligations, urging for stricter measures to enforce remittance laws.
Senator Ede Dafinon reinforced this perspective, advocating for the introduction of penalties for late or non-payment to ensure compliance among oil companies. He highlighted the detrimental effects of inflation on delayed remittances and called for immediate legislative action to amend the law to impose sanctions. The committee subsequently directed the NDDC to compile and submit a comprehensive overview of all defaulting entities, previous settlement discussions, and steps taken to recover outstanding remittances as it seeks to enhance oversight of development and environmental restoration funds in the Niger Delta.
