•Nigerian Senate
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), as required under the NDDC Act.
The Senate Committee on NDDC opened the probe yesterday following a petition alleging that Aiteo Exploration and Production Company Limited, now known as Nembe Exploration and Production Company Limited, owes the Commission outstanding statutory remittances of $71.65 million and N30.7 billion 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 support infrastructure development, environmental remediation and other intervention projects in the region.
Aiteo did not appear before the committee despite an invitation to the investigative hearing, reports The Nation.
Declaring the hearing open, Chairman of the Senate Committee on NDDC, Senator Asuquo Ekpenyong, said the lawmakers were investigating allegations that the company breached Section 2(p) of the NDDC Act, as amended in 2017, by failing to make the statutory remittances.
Presenting the petition, environmental activist Matthew Echo said the non-remittance of statutory contributions by some oil companies had weakened the Commission’s capacity to execute its development mandate.
He said the NDDC was established to address environmental degradation and developmental challenges in the Niger Delta but had continued to face funding constraints due to non-compliance by some oil firms.
According to the petitioner, several International Oil Companies have allegedly failed to meet their statutory obligations for years, depriving the Commission of funds needed for critical projects across the region.
Echo alleged that Aiteo had previously been reported to the Economic and Financial Crimes Commission (EFCC) in 2021 over outstanding remittances.
Although part of the debt was reportedly recovered, he claimed the company remained indebted to the Commission to the tune of $71.65 million and N30.7 billion.
He further alleged that the funding shortfall had contributed to delayed development projects, unpaid contractors and slow environmental remediation efforts in the Niger Delta.
The petitioner urged the Senate to extend its investigation to other defaulting oil companies and work with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and other regulators to enforce compliance with the law.
Responding, the Managing Director of the NDDC, Dr. Samuel Ogbuku, acknowledged that recovering statutory remittances from International Oil Companies remained a major challenge for the Commission.
He told the committee that the NDDC had held several meetings with Aiteo, including engagements at the company’s Lagos office, to agree on a repayment plan, but the discussions did not yield the expected outcome.
According to him, the funding gap has affected the implementation of projects captured 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 of the NDDC Act.
Senator Adams Oshiomhole proposed that formal summons be issued to the affected companies, directing them to appear before the committee with documentary evidence of their remittance records.
Senator Ede Dafinone also advocated stiffer sanctions, including penalties for late payment and default, and requested a comprehensive list of all oil companies indebted to the Commission.
The committee subsequently directed Aiteo Exploration and Production Company Limited to appear before it within two weeks and mandated the NDDC to submit a comprehensive list of all defaulting companies, together with records of reconciliation meetings and recovery efforts.
The Senate said the investigation would continue as part of its oversight of statutory remittances intended to fund development and environmental restoration in the Niger Delta.
