Fresh concerns have erupted in the oil region over alleged slow or poor remittance of obligations by oil majors to the Niger Delta Development Commission (NDDC).

Fears are rife that about $4bn may be owed to the Commission by IOCs as at end of 2023, helping to ramp up over N3 trillion debt owed to contractors.

The debts arise from the 3% of the operational budgets of oil companies as mandated by the Petroleum Industry Act (PIA).

Reports indicate that the Senate and House of Representatives have frequently noted that IOCs are not fully adhering to the NDDC Act 2000, which requires them to pay 3% of their total annual budget to the commission.

Now, contractors have joined the push, urging oil multinationals and other stakeholders to comply with remittance of their obligatory financial commitment to the NDDC for the commission to effectively drive its development goals in the area.

In a statement by the NDDC contractors titled: “NDDC contractors raise alarm over non-remittance of statutory funds to the NDDC “, the body said the delay or outright failure by some of the funding partners of the Commission to commit to their financial obligations were slowing the successful operations of the Commission.

The statement was signed by Joe Adia, Oghogho Uwede, Prince Victor Fakar, Friday Dollar, Janai Obot, of the Board of Trustees (BOT), Omowoma Ovririe, the Legal Adviser, Sylvester Iyade, president of the group.

The appeal drew the ‘urgent’ attention of the Federal Government, regulatory authorities, and the general public to the persistent non-compliance by certain oil and gas companies in the remittance of their statutory obligations to the Niger Delta Development commission.

“These obligations, as clearly provided under the Niger Delta Development Commission Act and the Petroleum Industry Act, are fundamental to the development, stability, and sustainability of oil-producing communities. It is deeply concerning that despite these clear legal provisions, several operators continue to delay, underpay, or outright default in meeting their financial responsibilities.

“The direct consequences of this include: delays and abandonment of critical infrastructure projects, mounting financial strain on contractors executing government-backed projects, growing frustration and unrest among host communities.

“The Contractors Association has, in the interest of peace and stability, exercised considerable restraint while engaging relevant stakeholders through lawful and constructive channels. However, the continued disregard for statutory obligations is no longer sustainable.

“We therefore call on the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Federal Inland Revenue Service, and all relevant authorities to urgently conduct a comprehensive audit of oil companies’ statutory obligations, enforce full compliance without further delay, implement transparent mechanisms to ensure timely and accurate remittances.

“We also urge all defaulting oil companies to act responsibly and in good faith by fulfilling their obligations as required by law. While we remain committed to dialogue and peaceful resolution, we wish to state clearly that failure to address these concerns within a reasonable timeframe may leave stakeholders with no option than to explore all lawful means to protect their interests and ensure accountability.”

The group said the development of the Niger Delta is a collective responsibility that must not be compromised.

Debts owed to the NDDC either by the oil majors or the FG seem to send signals that the same people that failed to pay up may be the same people blaming youths of the oil region of restiveness. (BusinessDay)