.. .says it is up to date
Olusola Bello
The former Governor of Akwa Ibom, Senator Godswill Akpabio on Thursday accused oil companies operating Niger Delta of defaulting in the payment in their statutory remittances to the Niger Delta Development Commission (NDDC) to the tune of $4 billion.
But Shell Petroleum Development Company (SPDC) distance itself from such practice , saying that it is up to date as far as it obligations are concerned with NDDC.
The company’s General Manager External Relations, Igo Weli told Business Standards that both SPDC and SNEPCO always ensure that they make the payment and even demand for receipt from NDDC.
He said Shell is a responsible organization which has reputation to protect and because of this, it does all it can to be up to date when it comes to NDDC payment.
“A while ago we published the contribution of Shell and it partners to NDDC”
Attempt to get NDDC’s side of the story was not successful as the person I spoke with said I should direct my questions to the Minister, as he is the only one that understands why he made the statement.
Akpabio, Minister of Niger Delta Affairs, made the claim during at the weekly ministerial briefing held at the State House in Abuja.
He noted that oil firms operating in the area are expected to provide three percent of their annual budgets to the commission, but none has complied with this.
Akpabio stressed that the Ministry of Niger Delta will take a keen interest in the implementation of the three percent Petroleum Industry Act (PIA) compensation to host communities.
The former Akwa Ibom governor also stated that the NDDC owes contractors three ₦3 trillion. He, however, explained that not all awarded contracts with costs can be regarded as debt.
On the progress made so far in the Commission, the Niger Delta minister disclosed that about 109 projects – which would be commissioned soon – have been implemented in the South-South.
Funds from the Niger Delta Ministry – which was established in 2008 with a hundred ₦200 billion – shrank to ₦19 billion in 2020 and then rose slightly to ₦24 billion in 2021.
The minister revealed that ₦10 billion – out of the allocated fund – has been dedicated to fix the East-West Road.