The Senate Committee on the Niger Delta Development Commission (NDDC) has launched an investigation into allegations that international oil companies have defaulted on statutory remittances to the commission. The probe, initiated on Friday, follows a petition from environmental activist Mathew Echo, accusing Aiteo Exploration and Production Company Limited (now Nembe Exploration and Production Company Limited) of owing $71.65 million and N30.7 billion in outstanding contributions from 2021 to date.
Committee Chairman Assures Thorough Investigation
Committee Chairman Asuquo Ekpenyong, representing Cross River South Senatorial District, assured stakeholders that lawmakers would diligently examine the allegations and engage all relevant parties. He directed Aiteo Exploration to appear before the committee within two weeks. Additionally, the NDDC was instructed to submit a comprehensive list of all oil companies that have failed to remit statutory contributions, along with details of recovery efforts.
NDDC Mandate and Funding Structure
Established in 2000, the NDDC is tasked with addressing developmental challenges in the Niger Delta, Nigeria's oil-producing region comprising nine states: Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers. The region has suffered from environmental degradation, poverty, and inadequate infrastructure despite generating the bulk of the nation's oil wealth. The commission's mandate includes planning and implementing projects in transportation, education, health, housing, electricity, water supply, agriculture, and environmental protection.
Under the NDDC Act, funding sources include annual federal allocations, contributions from oil-producing companies (three percent of annual operating budgets), ecological funds, and grants. These contributions are vital for infrastructure development and environmental remediation.
Petitioner Highlights Decade-Long Default
Presenting the petition, Mr. Echo stated that the persistent failure of some oil companies to remit contributions has severely hampered the NDDC's capacity to execute its developmental mandate. He noted that the non-remittance has persisted for decades, leading to unpaid contractors, abandoned projects, and delays in environmental remediation. The petitioner urged the committee to investigate and called on the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce compliance, including sanctions against defaulting firms.
NDDC Managing Director Confirms Defaults
NDDC Managing Director Samuel Ogbuku acknowledged that several international oil companies have failed to meet their statutory obligations. He informed the committee that the commission has engaged Aiteo Exploration and other firms with little progress. The funding shortfall has negatively impacted the implementation of projects in the 2025 and 2026 budgets. Mr. Ogbuku assured lawmakers that the commission would continue pursuing recovery of all outstanding remittances.
Lawmakers Call for Stronger Enforcement
During deliberations, committee members advocated tougher measures against defaulting companies. Senator Adams Oshiomhole (Edo North) proposed issuing formal summons to affected firms, compelling them to appear with documentary evidence of remittance records. Senator Ede Dafinone (Delta Central) urged stricter sanctions, including penalties for late payments and defaults. He also called for a comprehensive list of all oil companies owing statutory remittances.
