FG is owing us N1.8 trn for 15 years, NDDC petitions, writes Senate

NIGER Delta Development Commission, NDDC has petitioned the Federal Government, saying that it was being owed a total of one trillion, eight hundred and forty two billion, eight hundred and five million, forty two thousand and fifty three Naira, ninety kobo ( N1,842,805,042,052.95) since the inception of the Commission in 2000 for a period of 15 years.

According to the petition  which was addressed to President Muhammadu Buhari and copied the Senate President, Senator Bukola Saraki, the NDDC said that from its computation, the whooping sum of N1,797,713,966,652.29 is owed it in unpaid statutory allocations and N45,091,075,401.66 unpaid ecological funds for the period 2000 to 2015.
The letter dated 21st February, 2017 and received by the Office of the President of the Senate 23rd February, 2017, was signed by NDDC Managing Director/ Chief Executive Officer, Nsima Ekere.

In the letter, titled, ‘Status Of The Niger Delta Development Commission (NDDC) And Outstanding Statutory Payments”, Ekere urged President Muhammadu Buhari to direct the Minister of Finance, Mrs. Kemi Adeosun to immediately commence the full implementation of funding provisions of the NDDC Act 2000 section 14(2)(a) & (c).
The NDDC Managing Director who appeared before the Senator Peter Nwaoboshi  led Senate Committee on Niger Delta Affairs to complain about the matter, said that the petition to the President became imperative because following a directive by Vice President Yemi Osinbajo that contractors should go back to sites, the office became a Mecca of sort as contractors who were being owed bombarded the office to ask for payment.
According to him, if the NDDC must deliver and work, it must be adequately funded by the federal government in line with the Act establishing the Commission, adding that the only source of funding comes from the international oil companies.
The NDDC has also asked the President to  direct the Minister of Finance to set up a joint committee with the Commission that would reconcile and agree outstanding claims due the Commission over the years as a result of the stated under payments as well as develop a mutually acceptable payment plan to ensure these payments are brought up to date in a reasonable timeframe.
Meanwhile, the Federal government said that the issue of funding the NDDC is not budgetary, but based on law.
Speaking on the matter when he appeared before the Senate Committee, Minister of Budget and National Planning, Senator Udo Ndoma who noted that there full budgetary provision for the Commission, said that where the problem is at the moment is releases, adding that it is a legal issue and that whatever was owed the NDDC should be given to the Commission.
Meanwhile, the Chairman of the Committee on Niger Delta Affairs, Senator Peter Nwaoboshi who urged the Federal government to pay off the money for the overall interest of the people of the Niger Delta, said that the meeting was called for because the government refused to pay, adding that it is a matter of law which must be adhered to.
The NDDC Managing Director’s letter to the President and which was copied Senate President Bukola Saraki read in full, “Permit me to thank you on behalf of the Governing Board of the Niger Delta Development Commission for the opportunity given us to interpret your vision and bring positive change to the Niger Delta region.
“Since taking over management of the organization 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 #123 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 vandalisation 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 organizational 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.
“This Governing Board has a limited time to complete its assignment which includes deploying an ambitious reform programme to turn around the Commission’s performance and improving service delivery to the people of the region. Achieving these objectives requires additional funding for the Commission.”
In the Prayers, Ekere said, “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.
“To develop a mutually acceptable payment plan to ensure these payments are brought up to date in a reasonable time frame. Please accept the assurances of our best regards. Most respectfully submitted.”