President Muhammadu Buhari, and the Senate have been petitioned by the Niger Delta Development Commission (NDDC) seeking intervention for the payment of N1.8 trillion unpaid statutory allocations and ecological funds for the year 2000 to 2015.
The Commission said the sum of N1,797,713,966,652.29 was for unpaid statutory allocations while N45,091,075,401.66 was for unpaid ecological funds.
The Managing Director/ Chief Executive Officer of NDDC, Mr. Nsima Ekere, who signed the letter, urged that the Minister of Finance, Mrs. Kemi Adeosun be prevailed upon to commence the full implementation of the funding provisions of the NDDC Act 2000 section 14(2)(a) & (c).
Ekere, appearing before the Senate Committee on Niger Delta Affairs, said the recent order by Vice President Yemi Osinbajo, to NDDC contractors to return to site, had caused the contractors to besiege his office to demand their contract payments.
He added that the NDDC could only deliver on its mandate when it was adequately funded by the Federal Government in line with the establishing Act.
He also called for the establishment of a joint committee between the Commission and the Finance Ministry to reconcile outstanding claims due to the NDDC, and develop a mutually acceptable workable repayment plan.
The Minister of Budget and National Planning, Senator Udo Udoma, noted that the funding of the commission was based on law.
Speaking before the Senator Peter Nwaoboshi led committee, Udoma said there was a full budgetary provision for the commission like other agencies, but added that there was the challenge of releases.
He however added that since the claims were based on the establishing Act, whatever was owed the commission should be given to it.
Nwaoboshi urged the Federal Government to urgently commence repayment of the money in the interest of the people of the Niger Delta.
Meanwhile the letter by the NDDC boss reads in part:
“Since taking over management of the organisation on the 4th November 2016, we have carried out a careful diagnostic review of the operations and the results show the Commission has 8,558 projects in its portfolio with about N123 trillion of contingent liabilities on the balance sheet.
“The Niger Delta Regional Development Master Plan has not been properly implemented, as such there has been no systemic or sustainable development of the region and this is reflected in the low quality of infrastructure deliverables that decay rapidly, poor socio-economic development of the people, and pipeline vandalism which further exacerbates our funding challenges.
“Our findings suggest that at the root of these issues is the poor governance of the institution due to weak administrative controls and poor corporate culture.
“To address these challenges we have come up with a four point agenda; the 4R strategy which will Restructure the bloated balance sheet, Reform our governance systems, Restore the Master Plan from which we deviated, and re-orient our human resource to Reaffirm our commitment to doing what’s right.
“The implementation of this plan will result in the irreversible reform of the NDDC and ensure that we execute in collaboration with stakeholders, a Niger Delta Regional Development Master Plan that can be delivered for the benefit of the people.
“Whilst dealing with these internal organisational issues that will improve our performance, we shall also keep focused on the needs of the people of the region through the integrated regional development of infrastructure and the socio-economic improvement of the people. These initiatives will ultimately improve security especially in host communities where the Oil & Gas firms operate.”
“Permit me at this stage to bring to your attention that since inception in 2000, the Commission has not received the complete statutory allocation due from the Federation account and the Ecological Fund despite the clear and unambiguous provisions of section 14(2)(a) and (c) of the NDDC Act of 2000.’
“From our computations the whooping sum of N1,797,713,966,652.29 is owed NDDC in unpaid statutory allocations and N45,091,075,401.66 in unpaid ecological funds for the period 2000 to 2015.’
“The total amount outstanding to the Commission is thus N1,842,805,042,053.95 (one trillion eight hundred and forty two billion, eight hundred and five million, forty two thousand and fifty three naira ninety five kobo) only. I have enclosed a schedule showing the detailed computation for your perusal.’
“Your Excellency Mr. President, in light of the afore-mentioned, is most respectfully invited to consider and approve the following: A directive to the Honorable Minister of Finance to immediately commence the full implementation of funding provisions of the NDDC Act 2000 section 14(2)(a) & (c).
“A directive to the Honorable Minister of Finance to setup a joint committee with the Commission, to reconcile and agree outstanding claims due the Commission over the years as a result of the stated under payments”.