The Senate has opened an investigation into the alleged failure of NEMBE Exploration and Production Company (NEPL) to remit $71.64 million and ₦30.74 billion in statutory contributions to the Niger Delta Development Commission (NDDC), with the oil firm given two weeks to appear before lawmakers to answer the allegations.

The Senate Committee on the NDDC ordered the company’s appearance after hearing a petition alleging that the outstanding remittances, covering 2015 to 2024, had deprived the intervention agency of critical funds needed for development and environmental remediation across the Niger Delta.

Committee Chairman, Senator Asuquo Ekpenyong, directed that fresh summons be served on the company through official correspondence, electronic mail and national newspaper publications, stressing that only the company’s Managing Director or Chief Executive Officer would be allowed to represent it at the next hearing.

He also directed the NDDC to furnish the committee with a comprehensive list of oil companies that had complied with their statutory remittance obligations and those yet to do so.

“We have come to find out that this is actually false. There’s a lot of delays in payment and outright non-remittance,” Ekpenyong said.

The petition, filed by environmental activist and oil spill litigation lawyer Matthew Echo, Esq., on behalf of the Registered Trustees of the Niger Delta Development Initiative, accused the company of failing to remit its statutory three per cent contribution to the NDDC as required under Section 14(2)(b) of the NDDC Act.

Echo told the committee that the alleged default had significantly weakened the commission’s capacity to execute development projects, tackle environmental degradation and address the ecological consequences of decades of oil exploration in the region.

According to the petition, reconciliation meetings involving the NDDC, the company and consultants established that NEPL owed $71,663,832 and ₦30,738,854,898, but despite acknowledging the outstanding liability, the company had paid only ₦1.5 billion.

The petitioner further recalled that the NDDC had petitioned the Economic and Financial Crimes Commission (EFCC) in 2021 over the alleged default, leading to partial recovery before the company allegedly stopped making further remittances.

Echo urged the committee to compel the company to pay the outstanding sums and consider recommending regulatory sanctions, including the suspension of its operations, should it continue to default.

Responding, NDDC Managing Director and Chief Executive Officer, Dr. Samuel Ogbuku, endorsed the petition, saying it reflected the commission’s experience with several International Oil Companies (IOCs).

“I want to thank this committee for its prompt intervention. Let me also extend my gratitude to the petitioner who, as a citizen of Nigeria and an indigene of the Niger Delta who cares about the region and its development, deemed it necessary to raise this petition.”

Dr. Ogbuku said the commission had intensified reconciliation efforts with the Federal Government and oil companies to improve funding, noting that statutory remittances remained the backbone of the NDDC’s operations.

“To improve our funding, we initiated reconciliation processes with our stakeholder institutions, particularly the International Oil Companies, which are required by law to remit three per cent of their annual budgets to the NDDC.”

He disclosed that while the commission had made progress in recovering ecological funds and other statutory allocations, and had also received support from the EFCC in recovering some outstanding IOC contributions, compliance by several operators remained poor.

“Our major challenge has been with some IOCs. We have written several letters and held numerous meetings. Initially, we thought they were cooperating, but these are public funds, not our personal funds.”

According to him, inadequate remittances have constrained implementation of the commission’s 2025 and 2026 budgets and threatened ongoing infrastructure projects across the Niger Delta.

Questioning the NDDC boss, Senator Enyinnaya Abaribe said the Senate was exercising its constitutional oversight powers under Section 88 of the Constitution and noted that the company had been properly invited under its current name, NEMBE Exploration and Production Company.

He, however, maintained that the principle of fair hearing required that the company be given another opportunity to appear before the committee.

Abaribe also sought clarification on what had happened after a reconciliation meeting held on February 2, 2024.

Dr. Ogbuku replied that both parties had agreed on the outstanding indebtedness but that the company had paid only ₦1.5 billion since then.

“After the reconciliation meeting, both parties adopted the figures representing the company’s outstanding indebtedness. Since then, while we have continued to expect payment, the company has paid only ₦1.5 billion.”

Former Edo State Governor, Senator Adams Oshiomhole, argued that the partial payment showed the company recognised its legal obligation.

“They have paid a token. For me, it is important that they have paid a token because what that tells me is that they are aware that they are under legal obligation to pay a certain amount. To falsify the books and pay less, in my view, is a crime.”

Oshiomhole also lamented the continuing environmental degradation in oil-producing communities, insisting that the suffering in the Niger Delta remained a current reality rather than a historical issue.

Senator Ede Dafinone described the alleged withholding of statutory contributions as a possible case of economic sabotage and called for stronger sanctions against companies that failed to comply with the NDDC Act.

He argued that, unlike the Petroleum Industry Act, the NDDC Act contained no effective penalties for non-compliance and urged lawmakers to address the gap to discourage delayed or unpaid remittances.

The committee adjourned the hearing for two weeks to enable NEMBE Exploration and Production Company to appear before the Senate panel and respond to the allegations. (Guardian)

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