Senate Probes Aiteo Over Alleged $71.65m, ₦30.7bn NDDC Remittance Debt

The Senate has commenced an investigation into allegations that some oil companies operating in the Niger Delta have failed to remit statutory contributions required by law to the Niger Delta Development Commission (NDDC).

The investigation, launched by the Senate Committee on NDDC on Friday, followed a petition alleging that Aiteo Exploration and Production Company Limited, now known as Nembe Exploration and Production Company Limited, owes the Commission outstanding statutory contributions amounting to $71.65 million and ₦30.7 billion.

The alleged outstanding payments reportedly cover the period from 2021 to date.

Under the NDDC Act, oil-producing companies operating in the Niger Delta region are required to contribute three per cent of their annual operating budgets to the Commission to support development projects, environmental restoration and other interventions across the region.

However, Aiteo did not appear before the committee despite being invited for the investigative hearing.

Declaring the hearing open, Chairman of the Senate Committee on NDDC, Senator Asuquo Ekpenyong, said the lawmakers were examining claims that the company breached Section 2(p) of the NDDC Act, as amended in 2017, by allegedly failing to meet its statutory obligations.

Presenting the petition before the committee, environmental activist Matthew Echo said failure by some oil companies to make their required contributions had affected the NDDC’s ability to deliver critical projects in the Niger Delta.

He argued that the Commission was established to address challenges linked to environmental degradation, infrastructure gaps and underdevelopment in oil-producing communities, but continued funding difficulties had slowed its interventions.

According to Echo, several International Oil Companies (IOCs) have allegedly failed to fulfil their financial obligations to the Commission over the years, depriving the region of funds required for development projects.

He specifically alleged that Aiteo’s outstanding liability had previously been reported to the Economic and Financial Crimes Commission (EFCC) in 2021, leading to the recovery of part of the debt.

However, he claimed the company still had outstanding obligations amounting to $71.65 million and ₦30.7 billion.

The petitioner urged the Senate to expand the investigation to cover other companies allegedly owing the NDDC and work with relevant regulatory agencies, including the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), to ensure compliance with the law.

Responding to the allegations, the Managing Director of the NDDC, Dr Samuel Ogbuku, acknowledged that recovering statutory contributions from oil companies remained a major challenge for the Commission.

Ogbuku told lawmakers that the NDDC had engaged Aiteo on several occasions, including meetings at the company’s Lagos office, in an attempt to resolve outstanding payment issues and establish a repayment arrangement.

He said those discussions had not produced the desired outcome.

The NDDC managing director further explained that funding gaps caused by unpaid statutory contributions had affected the implementation of some projects captured in the Commission’s 2025 and 2026 budgets.

During deliberations, members of the committee called for stronger enforcement mechanisms to ensure compliance with the NDDC Act.

Senator Adams Oshiomhole proposed that formal summons should be issued to affected companies, requiring them to appear before the committee and provide documentary evidence of their remittance records.

Similarly, Senator Ede Dafinone called for stricter penalties against companies that fail to meet their obligations, including possible sanctions for delayed payments and default.

The committee subsequently directed Aiteo Exploration and Production Company Limited to appear before it within two weeks.

It also mandated the NDDC to submit a comprehensive list of all companies allegedly owing statutory contributions, alongside records of reconciliation meetings and recovery efforts.

The Senate said the investigation would continue as part of its oversight responsibility to ensure that funds meant for development and environmental restoration in the Niger Delta are properly remitted and utilised.