Finance

NEITI says NDDC generated N755.96 billion in 3 years


Nigeria’s Extractive Industries Transparency Initiative (NEITI) has revealed that the Niger Delta Development Commission generated the sum of  N755.96 billion between 2017 and 2019.

NEITO disclosed this in its Fiscal Allocation and Statutory Disbursement (FASD) report on Thursday, for the years 2017 to 2019, according to the News Agency of Nigeria.

The report revealed that N551.08 billion (73 per cent) was contributed by oil and gas companies to the NDDC.

What NEITI is saying

It said that N755.96 billion was generated by the NDDC within the period under consideration.

  • The breakdown showed that N551.08 billion (73 per cent) was contributed by oil and gas companies, while the balance of 203.90 billion Naira (27 per cent) was Federal Government’s contribution to the commission.
  • The report further revealed that the total expenditure by the commission during the period under review was N882.3 billion.
  • The report added that expenditure showed N778.29 billion (88.20 per cent) expended on development projects, while operational cost accounted for N104.07 billion (11.80 per cent) of the total, citing that there was a gap between actual development projects expenditure as per audited financial statements and project monitoring list provided by the commission in the sum of N522.60 billion.
  • “While N679 billion was reported in NDDC’s financial statement, the project monitoring list reported expenditure of N157 billion on physical projects among the nine member states,” it stated.
  • It also warned that 40 oil and gas companies defaulted in their payment obligation to the commission.
  • For the PTDF, the report revealed that revenue for the period was at N155.34 billion, citing that 95 per cent came from signature bonus paid by oil and gas companies.
  • It stated that out of N86.34 billion utilised by the agency within the period under review, N59.84 billion was spent on core operating expenses while N26.35 billion and N143 million was for personnel/ administrative expenses and capital respectively.

What you should know

  • Last year, Nairametrics reported that the Federal Government stated that International Oil Companies (IOCs) operating in the Niger Delta are owes the Niger Delta Development Commission (NDDC) about $4 billion.
  • Minister for Niger Delta Affairs, Senator Godswill Akpabio, said that the oil firms operating in the area are expected to provide 3% of their annual budgets to the commission, as their contribution to its funding, however, none of the IOCs have complied with this.



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