The Paris Trust Limited, a firm responsible for the collection of unremitted statutory allocation to the Niger Delta Development Commission (NDDC) from oil and gas companies operating in the region, has said that the failure of the companies to pay their dues to the commission is impairing development in the region.
The Principal Partner, Paris Trust Limited, Mr. Timothy Bagwams, told reporters yesterday in Abuja that the firm has been authorized by the NDDC to serve letters to the defaulting companies to remit their dues to the commission.
He said that developmental activities of the commission are funded by monies paid by the oil companies, lamenting that since 2015, majority of the companies have failed to remit the statutory 3 percent 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 off shore, 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,” Bagwams quoted the NDDC Act.
“But as I speak with you the companies are owing NDDC more than N1.2 trillion, and this is why the Commission is achieving little in addressing the developmental needs of the region,” he added.
He confirmed that the NDDC through Paris Trust has asked the Federal Government and all the oil and gas companies operating in the Niger Delta region to fulfill their financial statutory obligations to the Commission by remitting all their outstanding remittances to its coffers.
He said the Commission has written to the Office of the Secretary to the Government of the Federation and Federal Ministry of Finance requesting for the remittance of the money which is well over N1.5trn.
He said, “Since 2015, the Federal Government has not been remitting its statutory 15 per cent of the total monthly statutory allocations due to member States of the Commission from the Federation Account as well as the 50 percent of monies due to member States of the Commission from the Ecological Fund.”
He said the firm is undertaking the facilitation and payment of the monies and noted that it would be left with no option than to resort to legal action if at the end of a seven-day ultimatum; they fail to make the remittances.
Over 50 oil companies are owing and have been served letters by the firm as of July 26, 2019.
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