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The Niger Delta Development Commission (NDDC) has asked all the oil and gas companies operating in the Niger Delta region to fulfil their financial statutory obligations to the Commission by remitting all their outstanding remittances to its coffers.
According a firm engaged by the Commission to undertake the facilitation and remittance of the unremitted monies, Paris Trust, all the oil and gas companies operating in the Niger Delta region have defaulted in the remittance of the three per cent of their annual budget to the Commission.
Section 14(2)(b) of the NDDC Act, 2014 says three percent of the total annual budget of any oil producing company operating on shore and offshore, in the Niger-Delta area, including gas-processing companies, shall be paid and credited to the fund established by the NDDC for the defrayal of all expenditure.
The firm which is undertaking the facilitation and payment of the monies said it would be left with no option than to resort to legal action if at the end of a seven-day ultimatum, they failed to make the remittances.
“Take notice therefore that if at the expiration of seven (7) clear days from the date of your receipt of this letter you still fail, refuse and or neglect to liquidate the outstanding indebtedness due and owing to NDDC, we shall without fail commence legal action against you in a court of law, to recover the said sum together with any additional interest that may have accrued thereon since 2015,” the firm wrote in the letter signed by Timothy Bagwams, a principal partner at the firm.
Among top oil companies owing the Commission that had already been served letters are Nigeria National Petroleum Corporation (NNPC), National Liquefied Natural Gas (NLNG),Chevron, Shell and Agip. Others are African Petroleum, Pan Ocean oil, Petro Bas, Seplat, Haliburton, South Atlantic Petroleum and Zenon, Slumberger and First Exploration among others.
Over 50 oil companies are owing and have been served letters by the firm as at July 26, 2019.
Source; Leadership Newspaper