The Senate Committee on the NDDC has opened an investigation into allegations that Nembe Exploration and Production Company Limited, formerly Aiteo Exploration and Production Company Limited, failed to remit $71.65 million and N30.7 billion in statutory contributions to the Niger Delta Development Commission, and has summoned the company to appear within two weeks alongside a full list of every oil company with outstanding remittances.
The probe followed a petition from environmental activist Mathew Echo alleging the company failed to remit statutory contributions to the NDDC from 2021 onward, as required under Section 2(p) of the NDDC Act, which obliges oil producing companies operating in the Niger Delta to contribute three percent of their annual operating budgets toward infrastructure, environmental remediation and other development programmes in the region. According to a committee statement, the company did not appear at the hearing despite an invitation. Committee Chairman Asuquo Ekpenyong, opening the session, said the panel is investigating allegations of non compliance with the Act and intends to give all parties a fair hearing, though he said the committee is prepared to give the company the benefit of the doubt over its absence since the invitation notice may have been too short. The Managing Director has indicated there are other companies with outstanding remittances, Ekpenyong said, and we want NDDC to furnish this committee with a comprehensive list showing which companies have complied with their obligations and which have not, adding that the committee has resolved to invite the company back within two weeks to respond directly to the allegations.
Presenting the petition, Echo described the case as symptomatic of a wider problem facing the commission, alleging some oil companies have consistently ignored their statutory obligations for years. He said the company was previously reported to the Economic and Financial Crimes Commission in 2021 over alleged non remittance, and while part of the outstanding sum was reportedly recovered at the time, substantial arrears remain unpaid, now totalling roughly $71.65 million and more than N30.7 billion, funds that, had they been remitted as required by law, would have significantly boosted the commission’s capacity to execute development projects across the Niger Delta.
NDDC Managing Director Samuel Ogbuku said recovering statutory remittances from oil companies remains one of the commission’s biggest ongoing challenges despite years of engagement with operators, disclosing that NDDC has held several meetings with the company, including negotiations at its Lagos office involving both NDDC officials and consultants engaged specifically to facilitate recovery. He called the petition a serious matter, noting that years of discussion, negotiation and even EFCC involvement have yet to produce a lasting resolution. During deliberations, former Edo State Governor Senator Adams Oshiomhole questioned why compliance with a clear statutory obligation should be treated as a matter for negotiation at all, arguing the law is explicit about what operators owe and proposing that affected companies simply be compelled to appear before the committee with documentary evidence of their remittance records.
