Senate probes alleged $71.65m, N30.7bn NDDC remittance default by oil firm

The Senate has commenced an investigation into the alleged failure of some International Oil Companies (IOCs) to remit statutory contributions to the Niger Delta Development Commission (NDDC), with lawmakers giving Aiteo Exploration and Production Company Limited, now known as Nembe Exploration and Production Company Limited, two weeks to appear before its committee.

The probe followed a petition by environmental activist Mathew Echo, who alleged that Aiteo owes the NDDC outstanding statutory remittances of $71.65 million and N30.7 billion, covering the period from 2021 to date.

Under the NDDC Act, oil-producing companies operating in the Niger Delta are required to remit three per cent of their annual operating budgets to the Commission to fund infrastructure, environmental remediation and other development projects.

The company was absent when the Senate Committee on NDDC opened its investigative hearing on the petition.

Declaring the hearing open, Chairman of the committee, Asuquo Ekpenyong, said the lawmakers were investigating allegations that Aiteo breached Section 2(p) of the NDDC Act, as amended in 2017, by failing to remit its statutory contributions to the Commission.

Presenting the petition, Echo said the persistent failure of some oil companies to comply with the law has significantly weakened the NDDC’s ability to deliver on its developmental mandate.

He said the Commission, established to address decades of environmental degradation and underdevelopment in the Niger Delta, has continued to grapple with inadequate funding due to the non-remittance of statutory contributions by several oil firms.

According to him, many IOCs have failed to meet their obligations for more than a decade, depriving the Commission of funds needed to execute critical projects across the region.

Echo described Aiteo as a habitual defaulter, recalling that the company was reported to the Economic and Financial Crimes Commission (EFCC) in 2021 over outstanding remittances.

Although part of the debt was reportedly recovered, he alleged that the company has continued to default, with arrears now standing at $71.65 million and N30.7 billion.

He warned that the continued non-remittance had contributed to unpaid contractors, abandoned projects and delayed environmental remediation in the Niger Delta.

The petitioner urged the Senate to widen the investigation to cover other defaulting oil companies and work with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and other regulators to enforce compliance and sanction erring firms.

Responding, the Managing Director of the NDDC admitted that recovering statutory remittances from IOCs remained one of the Commission’s biggest challenges.

He disclosed that the Commission had held several meetings with Aiteo, including engagements at the company’s Lagos office, to agree on a repayment plan, but the discussions failed to yield the expected result.

The NDDC boss said the funding shortfall has adversely affected the implementation of projects contained in the Commission’s 2025 and 2026 budgets, adding that efforts to recover all outstanding remittances would continue.

During deliberations, members of the committee called for stricter enforcement against defaulting companies.

Senator Adams Oshiomhole urged the committee to issue formal summons to the affected firms, compelling them to appear with documentary evidence of their remittance records.

Also, Senator Ede Dafinone called for tougher sanctions, including penalties for late payment and outright default, and requested a comprehensive list of all oil companies indebted to the Commission.

The committee thereafter resolved to summon Aiteo to appear before it within two weeks and directed the NDDC to submit a comprehensive list of all defaulting oil companies, including records of previous reconciliation meetings and recovery efforts.

Speaking further, the lawmakers affirmed that the investigation forms part of their oversight of statutory remittances meant to fund development and environmental restoration across the Niger Delta.