Precious Anga
Lagos — The Senate has opened an investigation into the alleged failure of some international oil companies (IOCs) to remit statutory contributions to the Niger Delta Development Commission (NDDC), directing Aiteo Exploration and Production Company Limited, now known as Nembe Exploration and Production Company Limited, to appear before its Committee on the NDDC within two weeks.
The probe followed a petition submitted by environmental activist Mathew Echo, who alleged that Aiteo owes the Commission outstanding statutory remittances amounting to $71.65 million and ₦30.7 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 finance infrastructure development, environmental remediation and other intervention projects across the region.
Aiteo was absent when the Senate Committee on NDDC commenced its investigative hearing on the petition.
Declaring the hearing open, Chairman of the Committee, Senator Asuquo Ekpenyong, said lawmakers were investigating allegations that the company breached Section 2(p) of the NDDC Act, as amended in 2017, by failing to remit its statutory obligations to the Commission.
Presenting the petition, Echo argued that the persistent failure of some oil companies to comply with the law had significantly weakened the NDDC’s capacity to deliver development projects across the Niger Delta.
He said the Commission, established to address decades of environmental degradation and socio-economic neglect in the oil-producing region, continues to struggle with inadequate funding because several operators have failed to fulfil their statutory obligations.
According to him, a number of international oil companies have defaulted on their remittances for more than a decade, depriving the Commission of funds required for critical infrastructure, environmental restoration and community development projects.
Echo described Aiteo as a recurring defaulter, recalling that the company was reported to the Economic and Financial Crimes Commission (EFCC) in 2021 over outstanding remittances.
Although part of the outstanding liability was reportedly recovered, he alleged that the company has continued to default, with arrears now standing at $71.65 million and ₦30.7 billion.
He warned that the prolonged non-remittance had contributed to abandoned projects, delayed environmental remediation and unpaid contractors across the Niger Delta.
The petitioner urged the Senate to expand its investigation to include other defaulting oil companies and work with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and other regulators to enforce compliance and sanction erring operators.
Responding to the petition, the Managing Director of the NDDC admitted that recovering statutory contributions from oil companies remains one of the Commission’s biggest funding challenges.
He disclosed that the Commission had held several meetings with Aiteo, including engagements at the company’s Lagos office, in an attempt to agree on a repayment plan, but the discussions failed to produce the desired outcome.
According to him, the funding shortfall has adversely affected the execution 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 measures against defaulting companies.
Former Edo State Governor, Senator Adams Oshiomhole, urged the committee to issue formal summons compelling the affected firms to appear before lawmakers with documentary evidence of their remittance records.
Similarly, Senator Ede Dafinone called for tougher sanctions against defaulting companies, including penalties for late payments and outright non-compliance. He also requested a comprehensive list of all oil firms indebted to the Commission.
The committee subsequently resolved to summon Aiteo to appear before it within two weeks and directed the NDDC to submit a detailed list of all defaulting oil companies, including records of previous reconciliation meetings and ongoing debt recovery efforts.
