Oil and gas companies operating in Nigeria remitted $6.755 billion and ₦1.529 trillion to the Niger Delta Development Commission (NDDC) between 2021 and 2025 as statutory contributions, even as outstanding obligations climbed to $290 million and ₦163 billion, lawmakers heard on Thursday.
The figures were presented during an investigative hearing by the Senate Public Accounts Committee examining the Nigeria Extractive Industries Transparency Initiative (NEITI) audit reports covering the 2021–2023 period. While the Senate’s inquiry centres on those audit years, the NDDC submitted reconciled payment records extending to 2025 to provide lawmakers with a more current financial position.
Representing the commission, Executive Director of Corporate Services Ifedayo Abegunde said the remittances were derived from the statutory 3% levy on the annual operating budgets of oil and gas companies, a funding mechanism established under the NDDC Act to finance infrastructure, environmental remediation and socio-economic development projects across the Niger Delta.
Despite the sizeable inflows, the commission disclosed that several operators have yet to meet their statutory obligations. According to the NDDC, unpaid contributions currently stand at $290 million and ₦163 billion, highlighting persistent compliance challenges within parts of Nigeria’s petroleum industry.
To support its submission, the commission presented lawmakers with a 64-page reconciliation report detailing company-by-company approved operating budgets, remittances made and outstanding liabilities. The document is expected to form part of the Senate’s broader review of compliance with statutory payments across the extractive sector.
Committee Chairman Senator Ibrahim Dankwambo said members would suspend deliberations on the report pending a detailed examination of the figures and supporting documentation before taking further legislative action.
Separately, the committee is investigating Aiteo Exploration and Production Company Limited, now operating as Nembe Exploration, over alleged unpaid statutory remittances amounting to $71.65 million and ₦30.7 billion. The outcome of that investigation could influence future enforcement of statutory payment obligations across the upstream oil and gas industry.
The Senate’s review comes as Nigeria intensifies efforts to strengthen transparency and accountability in the management of extractive sector revenues. Timely remittance of statutory contributions remains critical to the NDDC’s ability to finance infrastructure, environmental restoration and community development projects in the oil-producing Niger Delta, where funding requirements continue to outpace available resources.
For investors and industry participants, the investigation also underscores growing regulatory scrutiny of compliance with statutory financial obligations, as authorities seek to improve governance and enhance public confidence in the management of revenues generated from Nigeria’s petroleum sector.
