Senate Probes Alleged $71.65m, N30.7bn NDDC Remittance Default by Aiteo, Summons Company
•Seeks list of all defaulting IOCs, weighs tougher sanctions
Sunday Aborisade in Abuja
The Senate has commenced an investigation into the alleged non-remittance of statutory contributions amounting to $71.65 million and N30.7 billion by Aiteo Exploration and Production Company Limited, now known as Nembe Exploration and Production Company Limited, to the Niger Delta Development Commission (NDDC), warning that persistent defaults were undermining development efforts across the oil-producing region.
The Senate Committee on the NDDC, which opened the investigative hearing in Abuja, also directed the oil 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 the international oil companies (IOCs) with outstanding statutory remittances.
The probe followed a petition by environmental activist Mathew Echo, who alleged that 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 oil company, according to a statement issued yesterday by the Committee, 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 oil company the benefit of the doubt over its absence, noting that the notice of invitation might have been too short.
“The Managing Director (of NDDC) 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 oil company to appear before 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 amounted 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.
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 Nembe Exploration and Production Company Limited, including negotiations at its Lagos office involving NDDC officials and consultants engaged to facilitate the recovery process.
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.
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 affected companies be compelled to appear before the committee with documentary evidence of their remittance records.