NASS committee summons 17 oil firms over non-remittance of 3% budget to NDDC

For non-remittance of 3% of their budgets to the Niger Delta Development Commission (NDDC), the joint Senate and House of Representatives committee on Niger Delta affairs on Tuesday summoned 17 oil companies that have erred in compliance and directed them to appear before them within one week.

The NDDC law mandates that the oil companies remit to the commission 3% of their annual budget, but the companies have consistently rebuffed several attempts to provide copies of their budgets in order to determine the actual remittances.

During the budget defence of NDDC before the joint committee, Tuesday, it was revealed that non-remittance of the percentage by the oil companies have amounted to $273 million and N72 billion in both dollar and naira accounts, respectively.[admnager ad_id="desktop_1" placement="desktop" lazy="false"]

The erring oil companies are Shebah Express Petroleum, Atlas Petroleum, Allied Energy, Frontier Oil, Seven Energy Limited, Belma Oil Producing Limited, AITECO Exploration and Production, Dubri Oil, Conoil Producing, Continental Oil and Gas.

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Others are Enageed Resources Limited, New Cross Exploration and Production, Pan Ocean Oil Corporation Nigeria Limited, Nigeria Petroleum Development Resources, Munipulo Petroleum Development Company, Prime Exploration, Production Company and Nigeria LNG Limited, respectively.

Chairman of the joint committee, Peter Nwaboshi explained that it became imperative to invite the erring companies to interface with the lawmakers and proffer reasons why they are not obeying the law.

“We have invited all oil companies indebted to NDDC to come and tell lawmakers why they will not obey the law of the country. Some of the have confirmed that they owning NDDC,” he stated.

Nwaboshi further disclosed that apart from the 17 oil companies that have failed to comply, a subsidiary of the NNPC – the Nigerian petroleum development corporation (NPDC) is also owing N54 billion.

He revealed that as at when last the committee checked, Allied Energy owed $43 million, Pan Ocean Oil Corporation of Nigeria was owing $46 million while the Federal Government owed N1 trillion in the non-remittance.

Expressing dissatisfaction with the situation, Nwaboshi recalled how the 8th Senate made several effort to ensure that the companies complied but that it all failed because,  he said, “most oil companies tamper with their annual budgets.”

Commenting on the order by President Muhammadu Buhari for forensic audit be carried on NDDC, Nwaboshi said “we welcome forensic audit of NDDC because the 8th Senate did technical audit and our findings is very appalling. We are going to do our own full investigation. We have resolved to do full audit of NDDC.”

Revealing further, he said the joint NASS committee has in the cause of investigation found out that monies meant for NDDC were deposited in the Nigerian Port Authority (NPA), describing it as an act of illegality and mandated the Central Bank of Nigeria to quickly find ways on pulling back the fund into NDDC account.