FG says oil companies owe NDDC $4bn

The Federal Government on Thursday said oil companies operating in Nigeria are collectively owing the Niger Delta Development Commission (NDDC), over $4b.

Godswill Akpabio, minister of Niger Delta Affairs, said this on Thursday in a briefing at the Presidential Villa, Abuja.

“ NDDC is owed over $4b by the international oil companies and the federal government is making every effort to collect the money. They were expected to pay 3% of their annual budget to the NDDC, all of them are owing the NDDC.” said Akpabio.

The indebtedness, BusinessDay gathered spanned from several years unpaid commitments from the 3 percent each of the IOCs are mandated to remit to the interventionist agency from their annual budget.

Nigeria’s national oil company involved in joint venture partnerships with the oil companies is also among the indebted companies.

Akpabio said the funds were part of monies NDDC was expected to use in executing development projects in the oil-producing region in Nigeria and vowed that government will do whatever it takes to recover the funds from the oil companies.

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The Minister also revealed that the NDDC was owing contractors about N3 trillion though some of the are unverified.

“ We are investigating the NDDC through the forensic auditing. Since my assumption of office, l have checked and have not seen even a 5km of road done by the NDDC. We are still searching to understand where the funds they spent went into and we are going to find them”

Akpabio also said that 21 sites have been completed while new contracts will soon be awarded for 36 new sites under the Ogoni cleanup plan.

Also speaking on the 3 percent dedicated to the host communities under the recently signed Petroleum Industry Act, Akpabio said that the Ministry should be allowed to manage the funds, but added that it will ensure that none of the host communities will be shortchanged,

“The problem of the host community fund is not the percentage nor is the problem money. But how the money will be utilized judiciously to avoid acrimony, he said.