Managing director Niger Delta Development Commission (NDDC), Mr Chibuzor Ugwuoha has raised alarm that some of the international oil companies (IOC’s) owe the commission royalties of about to $50 million.
The NDDC boss disclosed this known in Abuja last week when the board of the Nigerian Extractive Industries Transparency Initiative (NEITI) paid him a visit.
Harping on the need for collaboration between the two agencies, the NDDC boss said the partnership was important so as to achieve greater results in the oil and gas industry as it affects the development of the Niger Delta region, stressing tat NEITI is the agency that is empowered to undertake the task.
The NDDC boss said NEITI’s increased role was essential to ensure that things were done properly, like getting the government and some international oil companies (IOC’s) to pay up their debts to his commission.
According to him, “the Act that established the commission had stated how the commission is to be funded – 15% of the volume of money going to the member states, 3% of IOCs’ annual budget and 50% of ecological fund going to the area. As we speak today part of the money due to the commission is yet to be realised or paid by the industry or the IOCs.”
The NNDC boss also hinted that government was also defaulting in the payment of its due to the commission, adding that: “We are equally aware that certain amount of money due to the commission from the government yet to be paid and that makes development a difficult because we need a lot of money to be able to develop the region.”
Explaining why it costs so much to construct roads compared to what is spent in other parts of the country, the NDDC said: “Those of us who know the terrain of that region will agree with me that where it is possible to construct one kilometre of road in some places with less challenges that it will need X naira to do, we will need X times five to build in the Niger Delta because of the terrain.
“There are places you cannot reach because you have to build bridges. The soil itself is not stable, so you need to do a lot of soil stabilisation. In some communities today you cannot even reach there. If you want to reach there, it will take about three days because there is no road. Then you can imagine what is happening to health service.”
Without mincing words, he said, the area needs resources because there is no way development could be achieved in the region without resources.
He added: “All of us know what is happening. The people are crying that they live in the midst of wealth but they have nothing to show. It has become a national concern.”
Responding, the executive secretary of NEITI, Alhaji Haruna Saheed, explained in his response that the 2005 audit report was part of the objectives they are mandated to achieve, adding that as a core mandate, the agency was poised to pursue accountability and transparency in the extractive industry. He also disclosed that the 2006, 2007 and 2009 audit reports would soon be inaugurated.
He added that the report had been a lot of concern in the sector and that NEITI would ensure that the oil firms remit certain contributions to the country.
“You are coming to ensure we are able to recover the debt. You have to see our remediation to see that things are done with dispatch. We have to make the oil firms to see it as a responsibility on them and make them pay. You will be carried along,” he assured his visitors.
Discussion about this post