The Senate has intensified its oversight of the Niger Delta Development Commission (NDDC), summoning NEMBE Exploration and Production Company (NEPL) to explain allegations that it failed to remit more than $71.64 million and ₦30.74 billion in statutory contributions owed to the intervention agency.
The Senate Committee on the NDDC gave the oil firm two weeks to appear before lawmakers after considering a petition alleging that the outstanding remittances, spanning 2015 to 2024, had deprived the commission of funds needed to execute critical infrastructure projects and tackle environmental degradation across the Niger Delta.
Chairman of the committee, Senator Asuquo Ekpenyong, ordered that fresh summons be served on the company through official correspondence, electronic mail and national newspaper publications, insisting that only the company’s Managing Director or Chief Executive Officer would be accepted to appear before the panel.
The committee also directed the NDDC to submit a comprehensive list of oil companies that have complied with their statutory remittance obligations and those still in default.
“We have come to find out that this is actually false. There’s a lot of delays in payment and outright non-remittance,” Ekpenyong said.
The petition, filed by environmental lawyer and oil spill litigation expert Matthew Echo on behalf of the Registered Trustees of the Niger Delta Development Initiative, accused NEPL of failing to remit the mandatory three per cent contribution to the NDDC as required under Section 14(2)(b) of the NDDC Act.
Echo told lawmakers that the alleged default had weakened the commission’s ability to fund development projects, address environmental pollution and respond to decades of ecological damage in oil-producing communities.
According to the petition, reconciliation meetings involving the NDDC, the company and consultants confirmed that NEPL owed $71,663,832 and ₦30,738,854,898. Although the company allegedly acknowledged the debt, it has paid only ₦1.5 billion.
The petitioner recalled that the NDDC petitioned the Economic and Financial Crimes Commission (EFCC) in 2021 over the alleged non-remittance, leading to partial recovery before payments reportedly stopped.
Echo urged the Senate to compel the company to settle the outstanding liabilities and consider recommending regulatory sanctions, including the suspension of its operations, should it continue to default.
Backing the petition, NDDC Managing Director and Chief Executive Officer, Dr. Samuel Ogbuku, said the commission had repeatedly engaged oil companies to improve compliance but continued to face resistance from some operators.
“I want to thank this committee for its prompt intervention. Let me also extend my gratitude to the petitioner who, as a citizen of Nigeria and an indigene of the Niger Delta who cares about the region and its development, deemed it necessary to raise this petition,” he said.
Ogbuku explained that statutory contributions from oil companies remain the commission’s financial backbone and disclosed that poor compliance had affected implementation of the NDDC’s 2025 and 2026 budgets.
“Our major challenge has been with some IOCs. We have written several letters and held numerous meetings. Initially, we thought they were cooperating, but these are public funds, not our personal funds,” he added.
Responding to questions from lawmakers, Ogbuku revealed that after a reconciliation meeting held on February 2, 2024, both parties agreed on the outstanding indebtedness, yet only ₦1.5 billion has been paid since then.
Senator Enyinnaya Abaribe said the Senate was exercising its constitutional oversight powers under Section 88 of the Constitution, adding that while the company deserved a fair hearing, it must appear before the committee to account for the allegations.
Former Edo State Governor, Senator Adams Oshiomhole, argued that the company’s partial payment amounted to an admission of liability.
“They have paid a token. For me, it is important that they have paid a token because what that tells me is that they are aware that they are under legal obligation to pay a certain amount. To falsify the books and pay less, in my view, is a crime,” Oshiomhole declared.
He also lamented the continued environmental devastation in oil-producing communities, insisting that the suffering of Niger Delta residents remains an ongoing national concern.
Senator Ede Dafinone described the alleged withholding of statutory contributions as a possible act of economic sabotage and urged the National Assembly to strengthen the NDDC Act by introducing stiffer penalties for companies that fail to comply with the law.
The committee adjourned the hearing for two weeks, directing NEMBE Exploration and Production Company to appear before the panel and respond to the allegations.
Photo Caption: Senate Committee Chairman on NDDC, Senator Asuquo Ekpenyong, with Senators Enyinnaya Abaribe and Victor Umeh during the investigative hearing on the alleged NDDC levy default by NEMBE Exploration and Production Company in Abuja.