Senate Probes Alleged $71.65m, N30.7bn NDDC Remittance Default by Oil Firm

Nigeria's Senate has launched an investigation into an international oil company accused of failing to remit significant funds to the Niger Delta Development Commission (NDDC). The alleged non-remittance amounts to $71.65 million and N30.7 billion, funds that are crucial for development efforts in the oil-producing region.

The probe was initiated following a petition by environmental activist Mathew Echo. He alleges that Aiteo Exploration and Production Company Limited, now operating as Nembe Exploration and Production Company Limited, has been in default of its statutory contributions to the NDDC since 2021. Under the NDDC Act, oil-producing companies are required to contribute three percent of their annual operating budgets to the commission to fund infrastructure, environmental remediation, and other development programs.

The Senate Committee on the NDDC, which commenced an investigative hearing in Abuja, has summoned the company to appear before it within two weeks to respond to the allegations. The committee's chairman, Senator Asuquo Ekpenyong, stated that while the company did not appear at the initial hearing despite an invitation, the committee is prepared to give them the benefit of the doubt, suggesting the notice might have been too short.

Furthermore, the committee has requested the NDDC to provide a comprehensive list of all international oil companies with outstanding statutory remittances. This indicates a broader concern about compliance within the sector. Echo's petition highlighted that this is a recurring issue, with some oil companies allegedly failing to meet their obligations for years. He also noted that while some arrears were reportedly recovered after a previous report to the Economic and Financial Crimes Commission (EFCC) in 2021, substantial amounts remain unpaid.

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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.