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NDDC: Reps probe recovery of over $4bn owed by IOCs

The House of Representatives on Wednesday unveiled plans to investigate the activities of International Oil Companies (IOCs) operating in the Niger Delta region as well as the recovery of over $4 billion allegedly owed Niger Delta Development Commission (NDDC).

The resolution was passed sequel to the adoption of a motion sponsored by Hon. Donald Kimikanboh Ojogo, who frowned at the flagrant breach of the NDDC Act, 2000 which was established in response to heightened agitations and violent yearnings for special intervention in the following oil-producing states.

As encapsulated in Section 2(1), the oil-producing states are Abia, Akwa-Ibom, Anambra Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers.

He said: “The House notes that Section 14(1) of the NDDC Act states: ‘The Commission shall establish and maintain a fund from which shall defray expenditures incurred by the Commission. (2) There shall be paid and credited to the fund established under subsection (1) of this section: (a) from the Federal Government, the equivalent of 15 percent of the total monthly statutory allocations due to member States of the Commission from the Federation Account; this being the contribution of the Federal Government to the Commission – (b) 3 percent of the total annual budget of any oil producing company operating, onshore and offshore, in the Niger-Delta Area; including gas processing companies; (c)50 percent of monies due to member States of the Commission from the Ecological Fund, (d) such monies as may from time to time, be granted or lent to or deposited with the Commission by the Federal or a State Government, any other body or institution whether local or foreign.

“The House further notes that while the Federal Government has adhered to Section 14 (1a), the International Oil Companies (IOCs) have continually subjected Section 14(1b) to total neglect and distasteful disrespect, thereby putting the NDDC in a state of fiscal incapacity, culminating in serious indebtedness to contractors; more so, that the NDDC is being owed $4 billion by the IOCs.

“The House is aware that the indebtedness of the IOCs to the NDDC had culminated in the drive by the Economic and Financial Crimes Commission (EFCC) to commence the debt recovery process.

“The House is worried that the Economic and Financial Crimes Commission in its recovery process, has continually held on to all such recovered monies without remitting same to the NDDC for the Commission to meet its obligations,” he noted.

To this end, the House resolved to set up an ad-hoc committee to investigate the flagrant disobedience of the aforementioned Section of the NDDC Act 2000 (as amended) by the international oil companies operating in the Niger Delta region.

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