* Orders company to appear within two weeks
Sunday Aborisade in Abuja
The Senate has commenced an investigation into the alleged non-remittance of statutory contributions running into $71.65 million and N30.7 billion by an international oil company to the Niger Delta Development Commission (NDDC), warning that persistent defaults are undermining development efforts across the oil-producing region.
The Senate Committee on the NDDC, which opened the investigative hearing in Abuja, also directed the company at the centre of the petition to appear before it within two weeks.
The panel also requested the commission to submit a comprehensive list of all international oil companies (IOCs) with outstanding statutory remittances.
The probe followed a petition by environmental activist, Mathew Echo, who alleged that Aiteo Exploration and Production Company Limited, now known as Nembe Exploration and Production Company Limited, had failed to remit statutory contributions to the NDDC from 2021 to date as required under the NDDC Act.
Section 2(p) of the NDDC Act, as amended, requires oil-producing companies operating in the Niger Delta to contribute three per cent of their annual operating budgets to the commission to support infrastructure, environmental remediation and other development programmes.
The company, according to a statement by the committee on Saturday, did not appear before it despite an invitation.
Declaring the hearing open, Chairman of the Senate Committee on the NDDC, Senator Asuquo Ekpenyong, said the committee was investigating allegations of non-compliance with the provisions of the NDDC Act and would ensure that all parties were given a fair hearing.
He, however, said the committee was prepared to give the company the benefit of the doubt over its absence, noting that the notice of invitation might have been too short.
“The Managing Director has also indicated that there are other companies with outstanding remittances. We want the NDDC to furnish this committee with a comprehensive list showing those that have complied with their obligations and those that have not,” Ekpenyong said.
He added that the committee had resolved to invite the company to appear before the lawmakers within two weeks to respond to the allegations.
Presenting the petition, Echo described the case as a reflection of a wider challenge facing the commission, alleging that some oil companies had consistently failed to comply with their statutory obligations for years.
He claimed that the company had previously been reported to the Economic and Financial Crimes Commission (EFCC) in 2021 over alleged non-remittance and that although part of the outstanding obligations was reportedly recovered, substantial arrears remained unpaid.
According to him, the outstanding liabilities amount to about $71.65 million and more than N30.7 billion.
“If these funds had been remitted as required by law, they would have significantly enhanced the commission’s capacity to execute development projects across the Niger Delta,” he said.
The petitioner further argued that continued non-remittance had weakened the NDDC’s ability to finance ongoing projects, settle obligations to contractors and undertake environmental remediation across the region.
Responding, Managing Director and Chief Executive Officer of the NDDC, Dr. Samuel Ogbuku, said recovering statutory remittances from oil companies remained one of the commission’s biggest challenges despite years of engagement with operators.
He disclosed that the commission had held several meetings with the company, including negotiations at its Lagos office involving NDDC officials and consultants engaged to facilitate the recovery process.
“We held several meetings and at a point we thought we were close to reaching an agreement. We exchanged letters, met repeatedly and initially believed there was cooperation, but unfortunately the expected outcome did not materialise,” he said.
He stressed that the disputed funds belonged to the people of the Niger Delta and not to the commission.
“These are public funds meant for the development of the Niger Delta. Many people assume the NDDC receives all the money due to it and therefore expect corresponding levels of development. The reality is different because many statutory remittances are delayed or not made at all,” he said.
The NDDC chief added that the commission also faced delays in receiving statutory allocations from the Federal Government, compounding its funding challenges.
“Contrary to public perception, the statutory three per cent contributions expected from international, multinational and indigenous oil companies are not remitted consistently.
“We have discovered widespread delays and instances of outright non-remittance by some operators,” he stated.
Describing the petition as a serious matter, he said years of discussions, negotiations and even the involvement of the EFCC had yet to produce a lasting solution.
“We believe this committee’s intervention will send a strong signal to the entire industry that compliance with statutory obligations is not optional,” he added.
During deliberations, former Edo State Governor, Senator Adams Oshiomhole, questioned why compliance with a clear statutory obligation should be a subject of negotiation.
“The law is explicit on what operators are required to pay. Why should compliance become a matter for negotiation?” he asked, proposing that the affected companies be compelled to appear before the committee with documentary evidence of their remittance records.
Senator Ede Dafinone also advocated stronger enforcement measures, arguing that the absence of penalties for delayed or non-payment had encouraged persistent defaults.
He noted that delayed remittances lose value because of inflation and the time value of money, thereby reducing resources available for development.
He called on the National Assembly to consider legislative amendments introducing sanctions for late payment and outright default to strengthen compliance with the law.
The committee subsequently directed the NDDC to submit details of all defaulting companies, previous reconciliation meetings and efforts made to recover outstanding remittances as the Senate intensifies oversight of funds meant for the development and environmental restoration of the Niger Delta.
