Managing Director of the Niger Delta Development Commission (NDDC), Dr. Sam Ogbuku, has disclosed to the House of Representatives Committee on NDDC that the agency is currently owed over N2 trillion.
This substantial amount, according to Ogbuku, represents 15% of the allocation designated for the nine states constituting the Niger Delta region since 2000, which has yet to be disbursed.
During his appearance before the committee, Ogbuku highlighted the financial challenges facing the NDDC, emphasizing that despite the approval of budgets for the years 2021, 2022, and 2023, the commission has not received the necessary funds. He appealed to the lawmakers to intervene and help resolve the issues impeding the financial stability of the NDDC.
The Managing Director stressed the significant impact of the outstanding debt on the operations of the agency, noting, “The NDDC Act says the monthly allocation from the federal government is 15 percent of the allocation of nine states of the Niger Delta. But I can assure you that since the inception of NDDC, it has not gotten that.”
Ogbuku further explained that the federal government only allocates funds based on what it deems fit for the NDDC in a given year. He highlighted the unique challenges faced by the commission, stating that it did not have budgets for the years 2021, 2022, and 2023 until they were fast-tracked for passage in April of the current year.
Observers in the Oil sector say the revelation of the substantial debt underscores the financial strain on the NDDC and emphasizes the urgency of addressing the outstanding financial obligations to enable the commission to fulfill its mandate effectively.
