Group Faults NDDC’s 2010 Budget

The Niger Delta Development Commission (NDDC) budget for this fiscal year has come under some harsh criticism even as the Petroleum Industry Bill (PIB) received thumps up for coming up with new provisions for the oil and gas region.

Stakeholder Democracy Network (SDN), a civil society group which took a swipe on the NDDC budget however, said the PIB which has been a seeming endless saga that has primarily been noted for battles between government and industry interests over various commercial provisions.

Spokesperson of the group, Mr. Inemo Semiama, said in an interview with newsmen on Wednesday that receiving less attention has been the scope for the bill to either address or institutionalize further a swathe of impacts on communities in the Niger Delta.

According to the group, ‘’existing law, and crucially the way it is enforced, has led to a tolerance for a level of oil spills that would not be accepted in any other part of the world.

There are some provisions in the bill – such as a mandatory clean up reserve fund – that at least partly acknowledge this problem.

“As the passage of the PIB is unlikely to wait much longer there is an urgent need for effective public hearings that will address both the 10 percent provision and the role of the PIB in reducing the devastating environmental impacts of oil operations’’, the group said.

On the $1.6 billion NDDC 2010 budget, the SDN said the budget was only passed at the end of July by the National Assembly, claiming that it was passed without any meaningful breakdown of its main activity – capital projects – other than a single line for the expenditure that it will make in each state.

“Its annual budget appears never to have been released publicly, leaving it less transparent than even the most opaque of states. In the next couple of months the NDDC will rush to contract out its 2010 budget before the end of the year, with a very high risk that patronage priorities will trump development needs,” SDN said.

They said the NDDC can help overcome its appalling reputation as a patronage contracting machine by “demonstrating that a high degree of public transparency will help protect its enlarged budget from the abuse that has been a persistent characteristic over the past nine years’’.