Oil and gas companies remitted a total of $6.75 billion and ₦1.529 trillion to the Niger Delta Development Commission (NDDC) over a four-year period, the commission has told the Senate.

The disclosure came during a hearing of the Senate Public Accounts Committee, which is investigating audit queries raised by the Office of the Auditor-General into the operations of the extractive industry between 2021 and 2023.

Ife Dayo Abegunde, NDDC’s Executive Director in charge of Projects, who represented Managing Director Samuel Ogbuku at the hearing, told the committee that despite the substantial remittances, oil companies still owe $290 million and ₦163 billion in statutory contributions to the commission.

Fuel Subsidy and Deductions

Mohammed Shehu, Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), also appeared before the committee and revealed that Nigeria spent ₦1.16 trillion on fuel subsidies in 2021 alone. He added that ₦1.20 trillion was deducted from federal crude oil sales revenue, while ₦16.2 billion was used to cover crude oil and petroleum product losses, ₦22.05 billion for pipeline repairs, and ₦6.75 billion for strategic reserves.

Shehu also raised concerns about the calculation method for the 13 per cent derivation fund, arguing that the current approach “undermines the constitutional objectives” of the policy.

A History of Stalled NDDC Audits

The public hearing comes as part of ongoing efforts to provide legislative oversight over the operations of the NDDC and the compliance of oil companies with their statutory obligations to the development of the Niger Delta region.

The committee, chaired by Senator Ibrahim Dankwambo (Gombe North), is examining the extent to which audit recommendations have been implemented.

NDDC has a history of stalled audits. In October 2023, President Bola Tinubu directed the Ministry of Niger Delta Affairs to conduct a comprehensive forensic audit of the NDDC from 2001 to 2023, following growing concerns over corruption and mismanagement. However, that directive has yet to be fully implemented.

The current hearing is part of the National Assembly’s broader effort to strengthen oversight of revenue-generating agencies and ensure that funds meant for the development of the Niger Delta are properly accounted for and utilised.