International Oil companies default on NDDC remittance, withhold $4bn – Akpabio

The Minister of Niger Delta Affairs, Godswill Akpabio, on Thursday in Abuja, revealed that international oil companies operating in the Niger Delta have over the years defaulted in statutory remittances of $4 billion to the Niger Delta Development Commission (NDDC).

The Minister also disclosed that the NDDC forensic audit report is ready, expressing optimism that President Muhammadu Buhari would implement the audit report to the letter. He remarked that President Buhari is a no-nonsense leader, adding that, indeed, the implementation of the audit report has already started gradually.

Akpabio, revealing the oil companies default on Thursday at the weekly ministerial briefing at the State House, Abuja, indicated that oil companies operating in the Niger Delta ought to contribute three percent of their annual budgets to the commission, noting that no company has complied with the mandate.

Akpabio also disclosed that the NDDC owes contractors three ₦3 trillion. He pointed out that not all awarded contracts with costs translate to debt.

Akpabio highlighted that the Niger Delta Development Commission has completed about 109 projects, which, according to him, would soon be commissioned, noting that the   implementation is concentrated in the South-South.

The Minister observed that funds from the Niger Delta Ministry, which was established in 2008 with a ₦200 billion, shrank to ₦19 billion in 2020 and then rose slightly to ₦24 billion in 2021. He said that ₦10 billion, out of the allocated fund, has been committed to fixing the East-West Road.

Akpabio aligned with President Buhari on the 3 percent allocation to oil host communities in the Petroleum Industry Act signed by the President. He stated that the issue is not the 3 percent allocation but how to deliver the 3 percent fund to host communities.