Senate probes alleged $71.64m, ₦30.7bn NDDC levy default by NEMBE

The Senate has intensified its oversight of the oil and gas sector with the launch of an investigation into the alleged non-remittance of $71.64 million and ₦30.74 billion in statutory contributions by NEMBE Exploration and Production Company (NEPL) to the Niger Delta Development Commission (NDDC).
The Senate Committee on the NDDC gave the company two weeks to appear before it to explain the alleged default, warning that the matter concerns funds earmarked for the development of oil-producing communities in the Niger Delta.
The investigation followed a petition alleging that the company failed to remit its mandatory three per cent contribution to the commission between 2015 and 2024, contrary to the provisions of Section 14(2)(b) of the NDDC Act.
Chairman of the committee, Senator Asuquo Ekpenyong, ordered that fresh summons be served on the company through official correspondence, electronic mail and newspaper publications, insisting that only its Managing Director or Chief Executive Officer would be allowed to appear before the panel.
He also directed the NDDC to submit a detailed list of oil companies that have complied with their statutory remittance obligations and those that remain indebted to the commission.
“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.
Presenting the petition, environmental lawyer and oil spill litigation expert, Matthew Echo, alleged that the company’s failure to remit the statutory levy had denied the commission billions of naira required for infrastructure, environmental remediation and other development interventions across the Niger Delta.
He said reconciliation meetings involving the NDDC, NEPL and consultants established that the company owed $71,663,832 and ₦30,738,854,898, but had paid only ₦1.5 billion despite acknowledging the liability.
Echo further informed the committee that the NDDC had petitioned the Economic and Financial Crimes Commission (EFCC) in 2021 over the alleged default, resulting in partial recoveries before the company allegedly discontinued further payments.
He urged lawmakers to compel the company to settle the outstanding liabilities and consider stronger regulatory measures, including the suspension of its operations, if the default persists.
Backing the petition, NDDC Managing Director and Chief Executive Officer, Dr. Samuel Ogbuku, said inadequate remittances from some oil companies had become a major obstacle to the commission’s mandate.
He noted that the NDDC had embarked on extensive reconciliation exercises with the Federal Government and International Oil Companies to improve compliance, describing statutory contributions as the commission’s principal source of funding.
“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,” Ogbuku said.
According to him, poor compliance has affected the execution of the commission’s 2025 and 2026 budgets and slowed the delivery of critical infrastructure projects across the region.
During the hearing, Senator Enyinnaya Abaribe said the Senate was acting within its constitutional oversight powers under Section 88 of the Constitution but stressed that the company should be given another opportunity to defend itself in keeping with the principle of fair hearing.
Responding to lawmakers’ questions, Ogbuku disclosed that a reconciliation meeting held on February 2, 2024, ended with both parties agreeing on the outstanding liabilities, but only ₦1.5 billion had been paid since then.
Former Edo State Governor, Senator Adams Oshiomhole, argued that the partial payment amounted to an admission of liability.
“They have paid a token. That tells me they recognise they are under a legal obligation to pay. To falsify the books and pay less, in my view, is a crime,” Oshiomhole said.
Also contributing, Senator Ede Dafinone described the alleged withholding of statutory contributions as a possible act of economic sabotage and called for amendments to the NDDC Act to introduce stronger sanctions against defaulting companies.
The committee subsequently adjourned proceedings for two weeks to enable NEMBE Exploration and Production Company to appear before the Senate panel and respond to the allegations.