NDDC - neiti

Transcription

NDDC - neiti

NIGERIA EXTRACTIVE INDUSTRIES TRANSPARENCY
INITIATIVES (NEITI)
SECTION 1
Revenues, Deductions, Analysis of
Disbursement and Application of Funds
by Niger Delta Development Commission
Prepared by:
SIAO Partners
18b Olu Holloway road
Ikoyi Lagos
Nigeria
August, 2013
Report on Revenues, Deductions, and Analysis of Disbursement and Utilization of Funds of the Federal
Beneficiary Agencies 2007 – 2011 – Niger Delta Development Commission (NDDC)
Confidential
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Table of Contents
Table of Contents .......................................................................................................................... 2
List of tables................................................................................................................................... 4
1
2
3
4
5
Introduction ........................................................................................................................... 5
1.1
Vision and Mission Statement.......................................................................................... 5
1.2
Organizational Structure .................................................................................................. 5
1.3
Core Functions ................................................................................................................. 7
1.4
The Niger Delta Region: Brief Regional Fact file ........................................................... 7
1.4.1
Socio-Economic Indices in the Niger Delta Region ............................................... 10
1.4.2
Economic Opportunities in the Niger Delta Region ............................................... 11
NDDC Revenue Review ...................................................................................................... 12
2.1
NDDC Statutory Revenue .............................................................................................. 12
2.2
Annual Distribution of Total Revenue ........................................................................... 13
2.3
NDDC Revenue Distribution by Sources (2007 - 2011)................................................ 15
2.3.1
Revenue Sources Summary .................................................................................... 15
2.3.2
2007 Revenue Sources ............................................................................................ 16
2.3.3
2008 Revenue Sources ............................................................................................ 18
2.3.4
2009 Revenue Sources ............................................................................................ 21
2.3.5
2010 Revenue Sources ............................................................................................ 23
2.3.6
2011 Revenue Sources ............................................................................................ 25
Recurrent Expenditure ....................................................................................................... 28
3.1
Annual Distribution of Total Recurrent Expenditure ..................................................... 28
3.2
Annual Revenue against Recurrent Expenditure ........................................................... 31
Capital and Development Expenditure............................................................................. 32
4.1
Introduction. ................................................................................................................... 32
4.2
Total Capital Expenditure (CAPEX) 2007 – 2011......................................................... 33
4.3
Total Revenue against Total Capital Expenditure.......................................................... 34
4.4
Components of the Capital Expenditure ........................................................................ 36
4.5
Summary Composition of the NDDC Expenditure ....................................................... 39
NDDC State Projects .......................................................................................................... 41
5.1
Abia State Projects ......................................................................................................... 41
5.2
Akwa Ibom State Projects .............................................................................................. 42
5.3
Bayelsa State Projects .................................................................................................... 43
5.4
Cross River State Projects .............................................................................................. 44
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5.5
Delta State Projects ........................................................................................................ 45
5.6
Edo State Projects........................................................................................................... 46
5.7
Imo State Projects........................................................................................................... 47
5.8
Ondo State Projects ........................................................................................................ 48
5.9
Rivers State Projects....................................................................................................... 49
5.10
6
Reconciliation of Projects Master list and Financial Statements ................................... 51
6.1
7
Regional Projects of NDDC ....................................................................................... 50
Prior to 2007 NDDC Development Projects and Programmes ...................................... 52
Recommendations and Conclusion ................................................................................... 58
7.1
Key Findings .................................................................................................................. 58
7.1.1
Absence of Updated Financial Statements ............................................................. 58
7.1.2
NDDC Revenue - Federal Government .................................................................. 58
7.1.3
NDDC Revenue - Oil and Gas Companies ............................................................. 59
7.1.4
Project Duplication ................................................................................................. 60
7.1.5
Non Performing or Stagnated Projects ................................................................... 61
7.1.6
Projects with Payments Exceeding Contract Sum .................................................. 62
7.1.7
Allocation of Fund to State Offices ........................................................................ 63
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List of tables
Table 1: Breakdown of the Niger Delta .......................................................................................... 8
Table 2: Breakdown of the Niger Delta ........................................................................................ 13
Table 3: Overview of the total revenue received by the NDDC 2007 - 2011 .............................. 15
Table 4: Overview of the total revenue for oil companies 2007 - 2011 ....................................... 15
Table 5: Revenue Distribution ...................................................................................................... 16
Table 6: 2007 Oil & Gas Contribution Companies ...................................................................... 17
Table 7: 2008 revenue breakdowns .............................................................................................. 18
Table 8: Breakdown of Oil and Gas Companies and their Contributions .................................... 19
Table 9: 2009 Breakdown of revenue ........................................................................................... 21
Table 10: Breakdown of Oil Companies ...................................................................................... 22
Table 11: Revenue breakdown 2010............................................................................................. 23
Table 12: Breakdown of Oil Companies and their contributions ................................................. 24
Table 13: Breakdown of revenue sources 2011 ............................................................................ 25
Table 14: Breakdown of Oil Companies and their contributions ................................................. 26
Table 15: Breakdown of the total recurrent expenditure .............................................................. 28
Table 16: Annual Capital Expenditure ......................................................................................... 33
Table 17: Total Revenue v. Total Capital Expenditure ................................................................ 34
Table 18: Niger Delta Development Commission's Projects Nominal Roll 2007 - 2011 ............ 36
Table 19: Niger Delta Development Commission's Projects Contract Sum on Classification Basis
2007 - 2011 ....................................................................................................................... 37
Table 20: Niger Delta Development Commission's Projects Contract Sum on State Basis
2007 - 2011 ....................................................................................................................... 38
Table 21: Breakdown of NDDC Expenditure ............................................................................... 39
Table 22: Breakdown of Abia State Projects ................................................................................ 41
Table 23: Breakdown of Akwa Ibom State Projects ..................................................................... 42
Table 24: Breakdown of Bayelsa State Projects ........................................................................... 43
Table 25: Breakdown of Cross River State’s Projects .................................................................. 44
Table 26: Breakdown of Delta State Projects ............................................................................... 45
Table 27: Breakdown of Edo State Projects ................................................................................. 46
Table 28: Breakdown of Imo State Projects ................................................................................. 47
Table 29: Breakdown of Ondo State Projects ............................................................................... 48
Table 30: Breakdown of Rivers State Projects ............................................................................. 49
Table 31: Breakdown of Regional Projects of the NDDC ............................................................ 50
Table 32: Result of reconciling the Project Master list and the Financial Statements ................. 51
Table 33: Breakdown of sums spent before 2007 ......................................................................... 52
Table 34: Project Specific Breakdown in 2007 ............................................................................ 53
Table 35: Breakdown of 2008 Projects ......................................................................................... 54
Table 39: Project Duplication Breakdown .................................................................................... 60
Table 40: Payments Exceeding Contract Sum .............................................................................. 63
Table 41: Allocation of Fund to State Offices .............................................................................. 64
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1
Introduction
The Niger Delta Development Commission was established in 2000 by the NDDC Establishment
Act. This Act repealed the oil mineral producing areas Commission decree 1998, and among
other things. It also established the Niger Delta Development Commission with a re-organised
administrative structure for increased effectiveness. The Act sets out the mandate of the
Commission which is to deploy allocations from the Federation Account for tackling ecological
problems which arise from exploration of oil minerals in the Niger-Delta area.
The Commission was created largely as a response to the demands of the population of the Niger
Delta, a populous area inhabited by a diversity of minority ethnic groups. During the 1990s these
ethnic groups, most notably the Ijaw and the Ogoni established organisations to confront the
Nigerian Government and multinational oil companies such as Royal Dutch Shell. The
minorities of the Niger Delta have continued to agitate and articulate demands for greater
autonomy and control of the area's petroleum resources. They justify their grievances by
reference to the extensive environmental degradation and pollution from oil activities that have
occurred in the region since the late 1950s. However, the minority communities of oil producing
areas have received little or no direct fundingfrom the oil industry and environmental
remediation measures are limited and negligible. The region is highly underdeveloped and is
poor even by Nigeria's standards for quality of life.
Sometimes violent confrontation with the State and oil companies, as well as with other
communities has constrained oil production as disaffected youths or organisations deliberately
disrupt oil operations in attempts to effect change. These disruptions have been extremely costly
to the Nigerian oil industry, and both the multinationals and the Federal Government have vested
interests in permitting uninterrupted extraction operations; the Niger Delta Development
Commission is a result of these concerns and is an attempt to satisfy the demands of the Nigerdelta's population.
1.1 Vision and Mission Statement
The Vision of the NDDC is "A lasting solution to the socio economic challenges of the Niger
Delta Region" while the Mission Statement of the NDDC is “to facilitate the rapid, even, and
sustainable development of the Niger Delta into a region that is economically prosperous,
socially stable, ecologically regenerative, and politically peaceful”.
1.2 Organizational Structure1
The organizational structure of the NDDC is spelt out in the ACT establishing it. The Act provides for
governing board which consists of:
a) A Chairman;
1
As gleaned from the ACT
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b) One person who shall be an indigene of an oil producing area to represent each of the
following member States, that is,
i.
Abia
ii.
Akwa-Ibom State;
iii.
Bayelsa State;
iv.
Cross River State;
v.
Delta State;
vi.
Edo State;
vii.
Imo State;
viii.
Ondo State; and
ix.
Rivers State;
c) Three persons to represent non-Oil mineral producing States provided that such membership
should be drawn from the remaining geo-political zones which are not represented in the
Commission;
d) One representative of Oil producing companies in the Niger Delta nominated by the Oil
producing companies;
e) One person to represent the Federal Ministry of Finance;
f) One person to represent the Federal Ministry of Environment;
g) The Managing Director of the Commission; and
h) Two Executive Directors;
The Managing Director shall, subject to the general direction of the Board, be
responsible:
a) For the day to day administration of the Commission;
b) For keeping the books and proper records of the proceedings of the Board; and
c) for
The administration of the secretariat of the Board and

The general direction and control of all other employees of the Commission.
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1.3 Core Functions
The Commission’s core functions include:
 Formulation of policies and guidelines for the development of the Niger Delta area.
 Conception, planning and implementation, in accordance with set rules and regulations,
of projects and programs for sustainable development of the Niger Delta area in the field
of transportation including roads, jetties and waterways, health, employment,
industrialization, agriculture and fisheries, housing and urban development, water supply,
electricity and telecommunications.
 Surveying the Niger Delta in order to ascertain measures necessary to promote its
physical and socio-economic development.
 Preparing master plans and schemes designed to promote the physical development of the
Niger Delta region and the estimation of the member states of the Commission.
 Implementation of all the measures approved for the development of the Niger Delta
region by the Federal Government and the states of the Commission.
 Identify factors inhibiting the development of the Niger Delta region and assisting the
member states in the formulation and implementation of policies to ensure sound and
efficient management of the resources of the Niger Delta region.
 Assessing and reporting on any project being Funded or carried out in the region by oil
and gas companies and any other company, including non-Governmental organizations,
as well as ensuring that Funds released for such projects are properly utilized.
 Tackling ecological and environmental problems that arise from the exploration of oil
mineral in the Niger Delta region and advising the Federal Government and the member
states on the prevention and control of oil spillages, gas flaring, and environmental
pollution.
 Liaising with the various oil mineral and gas prospecting and producing companies on all
matters of pollution, prevention, and control.
 Executing such other works and performing such other functions, which in the option of
the Commission are required for the sustainable development of the Niger Delta region
and its people
1.4 The Niger Delta Region: Brief Regional Fact file
 The Niger Delta region of Nigeria is a massive wetland of significant biological diversity
with bulk proven oil reserves in Nigeria.
 The region, situated in the southern part of Nigeria and bordered to the south by the
Atlantic Ocean and to the East by Cameroon, it occupies a surface area of about 112,110
square kilometres. Also, it represents about 12% of Nigeria's total surface area.
According to the 2006 Census figure the population of the region was recorded to have a
population of 31.224 million
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Table 1: Breakdown of the Niger Delta
Land
Area Population2
(Sq.Kms)
States
Capital
Abia
Umuahia
4,877
2,833,999
Akwa - Ibom
Uyo
6,806
3,920,208
Bayelsa
Yenagoa
11,007
1,703,358
Cross-River
Calabar
21,930
2,888,966
Delta
Asaba
17,163
4,098,391
Edo
Benin
19,698
3,218,332
Imo
Owerri
5,165
3,934,899
Ondo
Akure
15,086
3,441,024
Rivers
Port Harcourt
10,378
5,185,400
112,110
31,224,577
Niger Delta
The very rich culture and heritage of the region is based on the presence of about 40 different
ethnic groups speaking around 250 languages and dialects. The numerous ethnic groups include
Ijaws, Ogonis, Ikwerres, Etches, Ekpeyes, Ogbas, Engennes, Obolos, Isoko, Nembes, Okrikans,
Kalabaris, Urhobos, Itsekiris, Igbos, Ika-Igbos, Ndoni, Oron, Ibeno, and Yorubas. Other groups
include Ibibios, Anang, Efiks, Bekwarras, and Binis etc.
 The heritage of the people is reflected in modes of dressing, marriages, traditional culture
and festivals.
 The traditional economic activities of the communities fall into two main categories:
 Land based type on the drier parts at the northern end of the Delta, which includes
farming, fishing, collecting and processing palm fruits, as well as hunting
 Water based type of economy at the southern parts of the Delta including fishing and
trading, with a less diversified economy.
 The diverse ethnic groups living in the region have a long history of participating in trade
and travel, which has led to the widespread exchange of ideas and art forms, among the
various groups and with the Western nations.
2
Source: The 2006 Census
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Population
2006 Niger Delta Population
150,000,000
100,000,000
50,000,000
Nigeria
Male
Niger Delta
Female
Total
Niger Delta
Male
16,092,797
Female
15,131,780
Total
31,224,577
Nigeria
71,709,859
68,293,683
140,003,542

 The predominant settlement type in the Niger Delta is small and scattered hamlets. The
vast majority of settlements comprise largely rural communities in dispersed village
settlements. The typical community consists of compounds, which are closely spaced
groups of small buildings housing 50 to 500 people, most of whom are farmers or fisherfolks.

 There are also larger settlements, which are usually separated from other clusters of rural
residences by their outer, rotational farmlands, oil palm or rubber plantation, bush or
stretches of secondary forest. These towns are usually located along roads, which radiate
from a 'core town' where churches, schools, market places and other functions are
situated. Most rural settlements lack essential amenities, such as medical facilities,
efficient marketing services, adequate shopping facilities, good water, power supply, and
good transportation systems.
 In the Niger Delta States, as in other States in the federation, administration of affairs at
the state level is vested in the elected Governor, a Deputy Governor and a cabinet of
appointed Commissioners, which constitute the State Executive Council. Special
Advisers, Assistants, Advisory Committees and the state bureaucracy or the civil service
and parastatals assist in the discharge of state functions. The State has a unicameral
legislature i.e. the House of Assembly with elected members from different
constituencies working together to determine the laws of the State.
 The States’ judiciary consists of customary courts of appeal, Magistrate courts, and High
Courts from which appeals go to the Federal Court of Appeal.
 At the Local Government level, an elected chairperson assisted by supervisory
councillors administers the Government. The elected members of the Local Government
Council form the legislative organ at this level. The councils can make by-laws in the
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area of their jurisdiction. Area or customary courts form the judiciary at the local
Government level.
 The Niger delta region is being estimated to consist of 13,329 settlements with some
recognised urban centres such as Port Harcourt, Warri, Asaba, Benin, Akure, Calabar,
Uyo, Umuahia, Aba, Owerri and Yenagoa. The territorial coverage consists of 9 states
with 185 local Government areas as indicated in the political map below.
The region has some key large scale industries which related to the oil and hydrocarbon sectors.
These include refineries, petrochemical plants, liquefied natural gas plants, and a fertilizer plant.
Numerous economic activities revolve around these industries, which employ the bulk of the
industrial work force in the region.
However, these provide limited employment opportunities and have not been able to absorb the
growing workforce of the region. The other major employers in the region are the Federal and
State Governments who invest heavily in infrastructure and large scale projects particularly in
the last decade.
1.4.1
Socio-Economic Indices in the Niger Delta Region
The following are the socio economic indices that spread through the Niger-Delta region and
also inhibit the sustainable growth and development:
 Wide spread poverty and apathy where greater percentage of the population are living
below poverty line;
 Extreme low level of industrial development;
 Poor health facilities and high mortality rate;
 High rate of unemployment among the youth;
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 Inadequate transportation structure with movement and access to settlements being
hampered by poor road network and difficult conditions especially in the riverine areas;
 Epileptic or Non-existence of electricity supplies in the region (not being linked to
national electricity grid);
 Poor sanitation and absence of efficient waste management planning;
 General environmental degradation due to oil and gas activities in the region;
 Social disorder such as violent conflicts, kidnapping, random killing and other relative
crimes and vices.
1.4.2
Economic Opportunities in the Niger Delta Region
Notwithstanding the challenges that becloud the Niger Delta region,
The following are perceived viable economic opportunities that can transform and advance the
development and sustained growth of the region in general:
 Immense potential for primary agricultural production;
 Establishment of trade zone for agricultural processing, aquaculture business and rural
enterprises;
 Opportunity for livestock production and processing venture;
 Optimization of oil and gas activities such as petro-chemical plant and enhancement of
other downstream operations;
 Development of viable and eco-friendly forestry and solid minerals activities; and
 Cultural and historic landscapes of the region can also lead to the development of tourism
ventures.
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NDDC Revenue Review
2.1 NDDC Statutory Revenue
The revenue sources for the Commission were well defined in the enabling Act under section 14
sub-sections 1 and 2:
 The Commission shall establish and maintain a Fund from which shall be defrayed all
expenditure incurred by the Commission.
 There shall be paid and credited to the Fund established in respect of the above:
o The Federal Government shall paid equivalent of 15 per cent of the total monthly
statutory allocations due to member States of the Commission from the Federation
Account; this being the contribution of the Federal Government to the Commission.
o 3 per cent 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;
o 50 per cent of monies due to member States of the Commission from the Ecological
Fund;
o Such monies as may from time to time, be granted or lent to or deposited with the
Commission by the Federal or a State Government, any other body or institution whether
local or foreign;
o All monies raised for the purposes of the Commission by way of gifts, loan, grants-in-aid,
testamentary disposition or otherwise; and
o Proceeds from all other assets that may, from time to time, accrue to the Commission.
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2.2 Annual Distribution of Total Revenue
The Niger Delta Development Commission's revenue for the five years period commencing from
1st January, 2007 to 31st December, 2011 is analyzed below:
Table 2: Breakdown of the Niger Delta
2011
N
million
%
2010
N
million
%
2009
N
million
%
2008
N
million
%
2007
N
million
TOTAL
%
N million
%
UNAUDITED
UNAUDITED
UNAUDITED
AUDITED
FEDERAL GOVT - FAAC
56,077
33.4%
44,938
33.3%
51,318
36.2%
40,570
47.8%
24,000
37.1%
216,902
36.5%
OIL COMPANIES
111,576
66.5%
89,773
66.5%
89,928
63.5%
43,942
51.8%
40,531
62.6%
375,751
63.3%
SUNDRY INCOMES
125
0.1%
385
0.3%
330
0.2%
277
0.3%
190
0.3%
1,307
0.2%
ANNUAL
CONTRIBUTION
AUDITED
167,778
135,097
141,575
84,790
64,721
28%
23%
24%
14%
11%
24%
-5%
67%
31%
593,961
%
ANNUAL % CHANGE
The Niger Delta Development Commission receipts consist of Federal Account Allocation, oil
companies and sundry (other incomes). The Commission earned NGN593.961 billion during the
period under review i.e. FASD 2007 - 2011 from the following sources:
 Federal Govt. Subventions
 Oil Companies Contribution
 Donation and Grants
 Recovery on Mass transits
 Insurance Claims
 Other Income
 Disposal of assets
 Contractors’ fee
 Bank Interest
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The Commission’s earnings grew from N64.721 billion in the fiscal year 2007 to NGN167.778
billion in the fiscal year 2011. This represents 159 percent growth within the years under review.
The cumulative total revenue from all sources was recorded at NGN593.961 billion; the Federal
Government has contributed NGN216.902 billion that is, 36.5 percent while the receipts from oil
companies accounted for NGN375.751 billion which also represents 63.3 percent.
However, the sundry incomes such as interest on deposits and others accounted for NGN1.307
billion with relative shareof 0.2 percent.
NDDC Revnue (N'million)
150
FEDERAL GOVERNMENT FAAC
100
OIL COMPANIES
50
0
SUNDRY OTHER INCOMES
OIL COMPANIES
ANNUAL % CHANGE
2011
2010
2009
2008
2007
NDDC Revenue 2007 - 2011
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
OIL COMPANIES
FEDERAL GOVERNMENT FAAC
2011
2010
2009
2008
2007
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2.3 NDDC Revenue Distribution by Sources (2007 - 2011)
2.3.1
Revenue Sources Summary
The table below presents a summary of the revenue distribution by sources over the review
period. The subsequent table will provide an annual by annual breakdown of the summary table
and the appropriate analysis.
Table 3: Overview of the total revenue received by the NDDC 2007 - 2011
Source
2007
N
2008
N
2009
N
2010
N
2011
N
Federal
Government
Oil Companies
Sundry (Other
Incomes)
Total
24,000,000,000
40,570,000,000
51,317,566,107
44,937,757,491
56,076,920534
40,531,352,200
189,832,000
43,942,473,000
277,491,000
89,927,822,349
329,529,734
89,773,376,789
385,391,640
111,576,195,210
125,064,883
64,721,184,200
84,789,964,000
141,574,918,190
135,096,525,920
167,778,180,627
The Table below provides the oil companies that were captured as revenue source
Table 4: Overview of the total revenue for oil companies 2007 - 2011
Oil Company
2007
N
2008
N
2009
N
2010
N
2011
N
SHELL PET
DEV CO
CHEVRON NIG
LTD
EXXON MOBIL
NIG AGIP OIL
COY
TOTALFINA
ELF
TOTALELFAMENAM
ADDAX OIL
COY
AGIP ENERGY
& NAT. RES
NIG. PET. DEV.
CO (NPDC)
AGIP EXPL
COY
AMNI OIL COY
ESSO EXPL
PRODUCING
SNEPCO
PAN OCEAN
OIL COY
BRASS PET.
11,503,901,672
11,991,948,984
13,260,813,255
16,596,531,610
32,436,592,660
4,568,180,598
4,694,432,150
8,761,021,322
12,140,533,456
11,743,520,928
6,150,937,600
3,161,132,000
5,821,687,940
1,689,351,578
29,908,285,941
1,817,931,833
18,118,738,073
4,243,412,388
12,914,589,581
2,485,830,398
2,014,465,268
2,863,577,064
13,146,954,742
15,705,720,469
15,806,277,258
1,667,907,736
32,701,619
4,560,000,000
3,497,000,000
3,480,761,976
4,355,672,560
13,771,790,100
843,691,223
386,184,125
495,528,000
895,850,956
2,564,973,300
48,472,550
1,206,987,437
3,867,751,573
804,765,583
2,413,119,753
2,725,501,400
1,617,576,554
509,029,572
1,275,275,126
190,500,000
3,951,341,565
6,490,954,315
98,992,954
483,154,862
139,997,200
15
807,032,722
125,800,000
828,197,361
112,497,750
1,053,313,964
3,819,878,385
5,121,908,574
860,096,700
251,613,172
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Oil Company
(MONIPULO)
OIL COY
OMEL ENERGY
NIG LTD
STAR-DEEP
PET. OUTER
SHELF LTD
TOTAL
UPSTREAM
DUBRI OIL
COY
TEXACO OIL
COY
STAT OIL NIG
LTD
BG EXPL &
PROD NIG LTD
MIDWESTERN
OIL
SAHARA
ENERGY
SEPLAT PET.
ENERGIA JV
SUNDRY OIL
COYS
TOTAL
2007
2008
2009
2010
2011
4,494,845,535
2,247,042,884
2,574,724,839
2,239,374,916
5,874,984,192
5,001,056,887
2,168,000
40,397,623
316,973,672
17,896,678
30,579,534
656,925,750
30,702,227
3,452,906,667
556,464,874
3,530,762,014
2,932,800,000
659,751,048
28,193,850
114,077,550
1,066,056,405
40,531,352,200
980,344,968
43,942,473,000
89,927,822,349
89,773,376,789
111,576,195,210
2.3.2
2007 Revenue Sources
The table below illustrates the breakdown of revenue from the statutorily recognised
contributors.
Table 5: Revenue Distribution
FEDERAL GOVERNMENT
OIL COMPANIES
2007
N
%
24,000,000,000
40,531,352,200
189,832,000
37.1%
62.6%
0.3%
64,721,184,200
The Commission received NGN64.721 billion from all its sources. The receipts from the Federal
Government accounted for NGN24 billion while receipts from the oil and gas companies
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Confidential
accounted for NGN40.531 billion and the other incomes from the incidental activities accounted
for NGN189.832 million.
The Federal Government’s contribution to the Commission was a single line subvention which
was paid quarterly into the CBN bank accounts of the Commission.
The oil companies contributed 62.6 percent (which should amount to three percent of their
annual budgets), the Federal allocation recorded 37.1 percent while the sundry other income of
the Commission was 0.3 percent as shown in the chart below:
2007
FGN ALLOCATION
OIL COMPANIES
OTHER INCOMES
0.3%
37.1%
62.6%
Table 6: 2007 Oil & Gas Contribution Companies
OIL & GAS COMPANIES
SHELL PET DEV CO
CHEVRON NIG LTD
EXXON MOBIL
NIG. AGIP OIL COY
TOTALFINA ELF
TOTALFINA ELF-AMENAM
ADDAX OIL COY
AGIP ENERGY & NAT. RES.
NIG. PET. DEV CO (NPDC)
AGIP EXPL COY
AMNI OIL COY
ESSO EXPL PRODUCING
SUNDRY OIL COYS
17
2007
N
%
11,503,901,672
4,568,180,598
6,150,937,600
3,161,132,000
2,014,465,268
1,667,907,736
4,560,000,000
843,691,223
48,472,550
804,765,583
190,500,000
3,951,341,565
1,066,056,405
28.4%
11.3%
15.2%
7.8%
5.0%
4.1%
11.3%
2.1%
0.1%
2.0%
0.5%
9.7%
2.6%
40,531,352,200
100%
2
2
Confidential
OIL & GAS COMPANIES
2007
N
%
The breakdown of receipts from oil and gas companies indicates that SPDC contributed 28.4
percent that is, NGN11.503 billion while Exxon Mobil contributed 15.2 percent that is, NGN6.15
billion; both Chevron and Addax contributed 11.3 percents each that is, NGN4.56 billion
respectively. The least contribution came from NPDC with 0.1 percent that is, NGN48.472
million. In addition, other unidentified contributions from sundry oil companies accounted for
2.6 percent that is, NGN1.066 billion
2007 - OIL COYS' REV. (N million)
SHELL PET DEV CO
1,066, 3%
191,
1%
805, 2%
48, 0%
CHEVRON NIG LTD
EXXON MOBILE
3,951,
10%
NIG. AGIP OIL COY
844, 2%
TOTALFINA ELF
11,504, 28%
ADDAX OIL COY
4,560, 11%
4,568, 11%
1,668, 4%
AGIP EXPL COY
AMNI OIL COY
2,014, 5%
2.3.3
3,161,
8%
ESSO EXPL PRODUCING
SUNDRY OIL COYS
6,151, 15%
Table 7: 2008 revenue breakdowns
FEDERAL GOVERNMENT OIL COMPANIES
2008
N
%
40,570,000,000
43,942,473,000
277,491,000
47.8%
51.8%
0.3%
84,789,964,000
18
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2
Confidential
The Commission received NGN84.789 billion from all sources. The receipts from the Federal
Government accounted for NGN40.57 billion while receipts from the oil and gas companies
accounted for NGN43.942 billion and the other incomes from the incidental activities accounted
for NGN277.491 million.
The oil companies contributed 51.8 percent (which ought to be three percent of their total annual
budgets), the Federal allocation recorded 47.8 percent while the sundry other income of the
Commission was 0.3 percent as depicted in the chart below
2008
FGN ALLOCATION
OIL COMPANIES
OTHER INCOMES
0.3%
47.8%
51.8%
Table 8: Breakdown of Oil and Gas Companies and their Contributions
OIL COMPANIES
SHELL PET DEV CO
SNEPCO
CHEVRON NIG LTD
EXXON MOBILE
NIG. AGIP OIL COY
PAN OCEAN OIL COY
TOTALFINA ELF
ADDAX OIL COMPANY
19
2008
N
%
11,991,948,984
6,490,954,315
4,694,432,150
5,821,687,940
1,689,351,578
98,992,954
2,863,577,064
3,497,000,000
386,184,125
27.29%
14.77%
10.68%
13.25%
3.84%
0.23%
6.52%
7.96%
0.88%
Confidential
2
2
OIL COMPANIES
2008
N
%
1,206,987,437
2.75%
2,413,119,753
5.49%
483,154,862
1.10%
1,617,576,554
3.68%
30,579,534
0.07%
656,925,750
1.49%
43,942,473,000
100%
The breakdown of receipts from oil and gas companies indicates that SPDC contributed 27.29
percent that is, NGN11.991 billion while SNEPCO contributed 14.77 percent that is, NGN6.49
billion; Exxon Mobil accounted for 13.25 percent that is, NGN5.821 billion.Chevron contributed
10.68 percent that is, NGN4.694 billion. The least contribution came from OMEL with 0.07
percent that is, NGN30.579 million.
AGIP EXPL COY
BRASS PET. (MONIPULO) OIL CO
ESSO EXPL PRODUCING
OMEL ENERGY NIG LTD
STAR-DEEP PET. OUTER SHELF LTD
Also, the number of companies that contributed in 2008 increased to 15 from the 13 contributors
in 2007.
The Chart below depicts the percentage contribution of the oil and gas companies that fall under
the NDDC categorization.
1,618, 4%
483, 1%
657, 1%
SHELL PET DEV CO
31, 0%
SNEPCO
2,413, 5%
CHEVRON NIG LTD
1,207, 3%
EXXON MOBILE
386, 1%
NIG. AGIP OIL COY
11,992, 27%
3,497, 8%
PAN OCEAN OIL COY
TOTALFINA ELF
ADDAX OIL COMPANY
2,864, 7%
6,491, 15%
99, 0%
1,689, 4%
AGIP EXPL COY
ESSO EXPL PRODUCING
5,822, 13%
OMEL ENERGY NIG LTD
4,694,
11%
STAR-DEEP PET. OUTER SHELF LTD
20
2
2
2.3.4
Confidential
Table 9: 2009 Breakdown of revenue
FEDERAL GOVERNMENT - FAAC
OIL COMPANIES
2009
N
%
51,317,566,107
89,927,822,349
329,529,734
36.2%
63.5%
0.2%
141,574,918,190
100
The Commission received NGN141.574 billion from all its sources. The receipts from the
Federal Government accounted for NGN51.317 billion while receipts from the oil and gas
companies accounted for NGN89.927 billion and the other incomes from the incidental activities
accounted for NGN329.529 million.
The Federal Government contribution to the Commission was a single line subvention which
was paid quarterly to CBN bank accounts of the Commission.
The oil companies contributed 63.5 percent (which ought to be three percent of their annual
Commission was 0.2 percent as illustrated in the chart below:
2009
FGN ALLOCATION
OIL COMPANIES
0.2%
36.2%
63.5%
21
OTHER INCOMES
2
2
Confidential
Table 10: Breakdown of Oil Companies
OIL COMPANIES
2009
SHELL PET DEV CO
CHEVRON NIG LTD
EXXON MOBIL
NIG. AGIP OIL COY
TOTALFINA ELF
TOTAL UPSTREAM
ADDAX OIL COMPANY
AGIP EXPL COY
DUBRI OIL COY
AMNI OIL COY
ESSO EXPL PRODUCING
STAR DEEP PET. OUTER SHELF LTD
TEXACO OIL COY
STAT OIL NIG. LTD
N
13,260,813,255
8,761,021,322
29,908,285,941
1,817,931,833
13,146,954,742
2,239,374,916
32,701,619
3,480,761,976
495,528,000
3,867,751,573
2,725,501,400
139,997,200
2,168,000
509,029,572
1,275,275,126
4,494,845,535
316,973,672
3,452,906,667
%
14.75%
9.74%
33.26%
2.02%
14.62%
2.49%
0.04%
3.87%
0.55%
4.30%
3.03%
0.16%
0.00%
0.57%
1.42%
5.00%
0.35%
3.84%
89,927,822,349
100.00%
The receipts from oil and gas companies indicated that Exxon Mobil contributed 33.26 percent
that is, NGN29.908 billion while SPDC contributed 14.75 percent that is, NGN13.260 billion;
Total Fina Elf accounted for 14.62 percent that is, NGN13.146 billion, the Chevron contributed
9.74 percent that is, NGN8.761 billion. The least contribution came from Dubril Oil with 0.002
percent (that is, NGN2.168 million).
Following the trend of the previous year, the number of companies increased to 17 from 15 and
not all the 2008 companies were contributors in 2009.
The chart below illustrates the percentage contribution of each oil and gas company.
22
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2
2
SHELL PET DEV CO
CHEVRON NIG LTD
4,495, 5%
2,
0% 1,275, 1%
3,453, 4%
509, 1%
3,868
, 4%
EXXON MOBILE
NIG. AGIP OIL COY
317, 0%
TOTALFINA ELF
140, 0%
2,726, 3%
TOTAL UPSTREAM
13,261, 15%
ADDAX OIL COMPANY
496, 1%
3,481, 4%
8,761, 10%
33, 0%
AGIP EXPL COY
2,239, 2%
BRASS PET. (MONIPULO) OIL
CO
DUBRI OIL COY
13,147, 15%
AMNI OIL COY
29,908, 33%
ESSO EXPL PRODUCING
STAR DEEP PET. OUTER
SHELF LTD
TEXACO OIL COY
1,818, 2%
2.3.5
STAT OIL NIG. LTD
Table 11: Revenue breakdown 2010
OIL COMPANIES
2010
N
%
44,937,757,491
89,773,376,789
385,391,640
33.3%
66.5%
0.3%
135,096,525,920
companies accounted for NGN89.773 billion and the other incomes from the incidental activities
accounted for NGN385.391 million.
Commission was 0.3 percent. This is illustrated in the chart below
23
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2
2
2010
FGN ALLOCATION
OIL COMPANIES
OTHER INCOMES
0.3%
33.3%
66.5%
The number of oil companies rose to 18 this year from 2009’s 17 companies.
Table 12: Breakdown of Oil Companies and their contributions
OIL COMPANIES
2010
N
16,596,531,610
3,819,878,385
12,140,533,456
18,118,738,073
4,243,412,388
15,705,720,469
5,874,984,192
4,355,672,560
895,850,956
251,613,172
40,397,623
125,800,000
828,197,361
2,247,042,884
17,896,678
3,530,762,014
980,344,968
SHELL PET DEV CO
SNEPCO
CHEVRON NIG LTD
EXXON MOBILE
NIG. AGIP OIL COY
TOTALFINA ELF
TOTAL UPSTREAM
ADDAX OIL COMPANY
DUBRI OIL COY
AMNI OIL COY
ESSO EXPL PRODUCING
TEXACO OIL COY
STAT OIL NIG. LTD
SUNDRY OIL COMPANIES
%
18%
4.26%
13.52%
20.18%
4.73%
17.49%
6.54%
4.85%
1.00%
0.28%
0.04%
0.14%
0.92%
2.50%
0.02%
3.93%
1.09%
89,773,376,789
100%
The receipts from oil and gas companies indicated that Exxon Mobil contributed 20.18 percent
that is, NGN18.118 billion while SPDC contributed 18 percent that is, NGN16.596 billion; Total
24
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2
2
Fina Elf accounted for 17.49 percent that is, NGN15.705 billion, the Chevron contributed 13
percent that is, NGN12.140 billion. The least contribution came from Texaco Oil Co. with 0.02
percent that is, NGN17.896 million. In addition, other unidentified contributions from sundry oil
companies accounted for 1.09 percent that is, NGN980.344 million
The trend changed in 2010 as the number of oil and gas companies decreased to 17 when
compared with the previous year’s figure of 18.
828,
1%
126, 0%
2,247
252, 0% , 3%
3,531, 4%
40, 0% 18, 0%
896, 1%
SHELL PET DEV CO
980, 1%
SNEPCO
CHEVRON NIG LTD
4,356, 5%
EXXON MOBILE
NIG. AGIP OIL COY
16,597, 18%
TOTALFINA ELF
5,875
, 7%
3,820
, 4%
TOTAL UPSTREAM
ADDAX OIL COMPANY
12,141, 14%
15,706, 17%
DUBRI OIL COY
AMNI OIL COY
ESSO EXPL PRODUCING
18,119, 20%
TEXACO OIL COY
4,243, 5%
STAT OIL NIG. LTD
SUNDRY OIL COMPANIES
2.3.6
Table 13: Breakdown of revenue sources 2011
OIL COMPANIES
2011
N
%
56,076,920,534
111,576,195,210
125,064,883
33.4%
66.5%
0.1%
167,778,180,627
100%
25
2
2
Confidential
companies accounted for NGN111.576 billion and the other incomes from the incidental
activities accounted for NGN125.064 million.
Commission was 0.1 percent. This is depicted in the chart that follows.
2011
0.1%
33.4%
FGN ALLOCATION
OIL COMPANIES
OTHER INCOMES
66.5%
Table 14: Breakdown of Oil Companies and their contributions
OIL COMPANIES
2011
N
32,436,592,660
5,121,908,574
11,743,520,928
12,914,589,581
2,485,830,398
860,096,700
15,806,277,258
5,001,056,887
13,771,790,100
2,564,973,300
807,032,722
112,497,750
1,053,313,964
2,932,800,000
SHELL PET DEV CO
SNEPCO
CHEVRON NIG LTD
EXXON MOBIL
NIGERIA AGIP OIL COY
PAN OCEAN OIL COY
TOTALFINA ELF
TOTAL UPSTREAM
ADDAX OIL COMPANY
AGIP EXPL COY
AMNI OIL COY
ESSO EXPL PRODUCING
BG EXPL. & PROD. NIG LTD
26
%
29%
4.59%
10.53%
11.57%
2.23%
0.77%
14.17%
4.48%
12.34%
2.30%
0.72%
0.10%
0.94%
2.63%
Confidential
2
2
OIL COMPANIES
2011
N
2,574,724,839
30,702,227
556,464,874
659,751,048
28,193,850
114,077,550
TEXACO OIL COY
STAT OIL NIG. LTD
MIDWESTERN OIL
SAHARA ENERGY
SEPLAT PET. ENERGIA J V
%
2.31%
0.03%
0.50%
0.59%
0.03%
0.10%
111,576,195,210
100%
The receipts from the oil and gas companies indicates that SPDC contributed 29 percent that is,
NGN32.436 billion while Total Fina Elf contributed 14.17 percent that is, NGN15.806 billion;
Addax Petroleum accounted for 12.34 percent that is, NGN13.771 billion, the Exxon Mobil
contributed 11.57 percent that is, NGN12.914 billion; Chevron accounted for 10.53 percent that
is, NGN11.743 billion. The least contributions came from both Texaco Oil Co and Sahara
Energy Ltd with 0.03 percent that is, NGN30.702 million and NGN28.193 million respectively.
The number of contributors changed again in 2011 as the oil and gas companies in the table
above, was 20 in total.
The Chart that follows shows the percentage breakdown of the aforementioned contributors
2011 - OIL COYS REV. (N million)
1,053
, 1%
2,933, 3% 31, 0%
28, 0%
2,565, 2% 112, 2,575 556,
0%
, 2%
0%
114, 0%
660, 1%
807, 1%
SHELL PET DEV CO
SNEPCO
CHEVRON NIG LTD
EXXON MOBILE
NIGERIA AGIP OIL COY
PAN OCEAN OIL COY
TOTALFINA ELF
TOTAL UPSTREAM
32,437, 29%
13,772, 12%
ADDAX OIL COMPANY
AGIP EXPL COY
5,001, 4%
AMNI OIL COY
ESSO EXPL PRODUCING
15,806, 14%
BG EXPL. & PROD. NIG LTD
5,122, 5%
11,744, 11%
TEXACO OIL COY
STAT OIL NIG. LTD
12,915, 12%
MIDWESTERN OIL
860, 1%
SHAHARA ENERGY
2,486, 2%
SEPLAT PET. ENERGIA J V
27
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2
2
3
Recurrent Expenditure
The Niger Delta Development Commission recurrent expenditure includes the Commission's
cost of administration; salaries; fees; remuneration; allowances; pensions and gratuities payable
to the members of the Board and the employees of the Commission.
The cost of administration also includes the overhead expenses of the following directorates:
 administration and human resources;
 community and rural development;
 utilities Infrastructural development and Waterways;
 environmental protection and control;
 finance and supply;
 agriculture and fisheries;
 planning, research, statistics and management information System;
 legal services
 education, health, and social services;
 commercial and industrial development, and
 Projects monitoring, and supervision.
3.1 Annual Distribution of Total Recurrent Expenditure
Table 15: Breakdown of the total recurrent expenditure
STAFF SALARIES &
EMOLUMENTS
RETIREMENT
BENEFITS & PENSION
ADVERT, PUBLICITY, &
COMM. REL
BOARD EXPENSES
CONFERENCES,
W/SHOP & SEMINARS
CONSULT, LEGAL AND
PROF
OFFICE
MAINTENANCE
2011
2010
2009
N
million
N
million
N
million
%
%
2008
%
N million
2007
%
N million
TOTAL
%
N million
%
UNAUDITED
UNAUDITED
UNAUDITED
AUDITED
8,145
58.69%
5,681
56.21%
2,474
35.08%
2,763
41.45%
2,193
42.22%
0
0.00%
0
0.00%
0
0.00%
243
3.65%
192
3.70%
435
1.01%
502
3.61%
562
5.57%
458
6.49%
367
5.51%
393
7.57%
2,283
5.32%
83
0.60%
243
2.40%
237
3.35%
113
1.70%
133
2.56%
809
1.89%
14
0.10%
39
0.38%
14
0.19%
11
0.17%
35
0.68%
113
0.26%
404
2.91%
168
1.67%
278
3.95%
354
5.31%
321
6.19%
1,526
3.56%
613
4.41%
701
6.94%
526
7.45%
394
5.91%
333
6.40%
28
AUDITED
21,257
2,566
49.55%
5.98%
Confidential
2
2
2011
2010
2009
N
million
N
million
N
million
%
%
2008
%
N million
2007
%
N million
TOTAL
%
N million
%
UNAUDITED
UNAUDITED
UNAUDITED
AUDITED
TRAVEL,
HOTEL
ACCOM & ENTERTAIN
1,942
13.99%
1,483
14.67%
1,260
17.86%
626
9.40%
559
10.76%
INSURANCE
184
1.32%
181
1.79%
414
5.87%
507
7.61%
184
3.55%
1,471
3.43%
MEDICAL
MOTOR
VEH.
MAINTENANCE
MISC.
OFFICE
EXPENSES
PRINTING
&
STATIONERY
129
0.93%
39
0.38%
41
0.58%
64
0.97%
27
0.53%
301
0.70%
194
1.40%
181
1.79%
156
2.21%
221
3.31%
222
4.27%
27
0.19%
20
0.20%
28
0.40%
36
0.54%
18
0.35%
128
0.30%
109
0.78%
41
0.40%
70
1.00%
61
0.91%
80
1.54%
361
0.84%
RENT & RATES
CONTIGENCIES
SECURITY
STAFF TRAINING
DEV
TELEX,
TEL
POSTAGES
204
1.47%
154
1.52%
246
3.49%
93
1.39%
108
2.09%
805
1.88%
396
2.86%
302
2.99%
327
4.63%
436
6.55%
224
4.31%
1,686
3.93%
546
3.94%
252
2.49%
118
1.67%
123
1.84%
57
1.09%
1,095
2.55%
164
1.18%
21
0.21%
25
0.35%
86
1.30%
67
1.29%
363
0.85%
223
1.60%
39
0.39%
382
5.41%
166
2.49%
47
0.90%
856
2.00%
5,870
974
&
10,107
32%
7,053
24%
16%
6,666
16%
5,194
12%
42,900
100%
The Commission's recurrent expenditures for the five years under review grew from annual total
of NGN5.194 in 2007 to NGN13.880 billion in the fiscal year 2011.
The growth rate is depicted in the chart below and shows the years and the amounts in millions.
2011 2010 2009 2008 2007
2.27%
&
13,880
N million
N million
N million
N million
N million
0
13.68%
&
BANK CHARGES & COT
TOTAL
AUDITED
2000
4000
6000
8000
10000 12000 14000
The analysis of the Commission's recurrent expenditure over the fiscal year 2007 to 2011
indicates that NGN42.900 billion has been expended for the five years under review. The
salaries, wages and other related expenses accounted for over 50 percent of this amount.
29
2
2
Confidential
The table above shows that salaries and wages accounted for 49.55 percent that is, NGN21.257
billion while transport and travelling associated cost recorded 13.68 percent that is, NGN5.87
billion. The office maintenance and associated costs accounted for 5.98 percent that is,
NGN2.566 billion while the advertisement and publicity also accounted for 5.32 percent that is,
NGN2.283 billion.
However, the least expenses was recorded in the miscellaneous office account head with 0.30
percent with a NGN128 million.
RECURRENT (N million)
BANK CHARGES & COT
TELEX, TEL & POSTAGES
STAFF TRAINING & DEV
CONTIGENCIES & SECURITY
RENT & RATES
PRINTING & STATIONERY
MISC. OFFICE EXPENSES
MOTOR VEH. MAINTENANCE
MEDICAL
INSURANCE
TRAVEL, HOTEL ACCOM &…
OFFICE MAINTENANCE
CONSULT, LEGAL AND PROF
CONFERENCES, W/SHOP &…
BOARD EXPENSES
ADVERT, PUBLICITY, &…
RETIREMENT BENEFITS &…
STAFF SALARIES &…
856
363
1,095
1,686
805
361
128
974
301
1,471
5,870
2,566
1,526
113
809
2,283
435
21,257
30
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2
2
3.2 Annual Revenue against Recurrent Expenditure
2007
N million
2008
N million
2009
N million
2010
N million
2011
REVENUE / RECURRENT EXPS
N million
-
50,000
100,000
150,000
200,000
2011
N million
RECURRENT EXPS 13,880
2010
N million
10,107
2009
N million
7,053
2008
N million
6,666
2007
N million
5,194
REVENUE
135,097
141,575
84,790
64,721
167,778
The comparison of the recurrent expenditures with the revenue receipts of the Commission over
the five year period indicates that the expenses have not exceeded 8 percent of the total receipts.
The years 2007, 2008 and 2011 recorded 8 percent of the revenue while 2009 and 2010 recorded
5 percent and 7 percent respectively.
31
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2
2
4
Capital and Development Expenditure
4.1 Introduction.
The NDDC sees to the implementation of its mandate by executing relevant projects in the entire
Niger Delta region. The Projects are conceptualized, designed, and executed based on extensive
consultation with locals, input from interested parties and critical analysis by experts. They are
awarded based on their ability to give maximum impact to the local region and beyond the
constraints of allotted budget.
The list below illustrates the typical projects and programmes embarked on by the Commission.
While some have been completed, a large number of them were reported to be ongoing within
the region
 Education which includes books, scholarship and infrastructures;
 Health including drugs, medical professionals and hospital infrastructures;
 Transportation including mass transit on roads and waterways;
 Road infrastructures such as bridges, landing jetty and land reclamation;
 Electrification projections;
 Skill acquisition and youth development;
 Agricultural development programmes;
 Security and logistics projects;
 Environment and waste management;
 Portable water projects etc.
32
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2
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4.2 Total Capital Expenditure (CAPEX) 2007 – 2011
Table 16: Annual Capital Expenditure
2007
2008
2009
2010
2011
TOTAL
PROGRAMMES
N' million
N' million
N' million
N' million
N' million
N' million
%
Education
20,557
22,302
23,110
-
65,969
6.86%
Health6
5,495
10,083
21,602
37,180
3.87%
Water Resources8
10,216
14,084
16,463
40,763
4.24%
Electricity
11,304
32,349
42,298
85,951
8.94%
Agriculture
13,916
14,936
28,853
3.00%
Transportation
7,629.60
771.60
7,120
7,209
Environment, Drainages & Sewages
Land Jetty
17,863
31,684
51,396
100,943
10.49%
Road Bridges
69,202
96,490
122,166
287,858
29.92%
Housing/Civic Centre/Town Hall
568
1,278
1,667
3,513
0.37%
Skilled Acquisition/Youth Dev
2,548
5,816
6,920
15,284
1.59%
Master plan
3,623
3,984
3,847
11,454
1.19%
Proj. Security & Logistics
-
5,459
6,025
11,483
1.19%
Others
22,797
7,221
7,088
272,693
28.35%
-
0.00%
164,173
ANNUAL % CONTRIBUTION
17%
259,416
27%
102,325
325,498
34%
133,262
102,325
133,262
11%
14%
961,943
The table above represents the completed template by the NDDC. It indicates that NGN961.943
billion has been expended on developmental projects and programmes by the Commission within
the five years under review.
The analysis was skewed because the breakdowns for the years 2010 and 2011 were not
allocated to respective projects and programmes but lump sums of NGN102.325 and
NGN133.262 was stated as overall capital and development expenses made in the two years
respectively.
The annual capital expenditures were not regular nor grew incrementally over the period. The
value increased from NGN164.173 billion in 2007 to N259.416 billion in 2008 with a relative
increase of 58 percent while in 2009, it increased with a relative growth of 25% that is,
NGN325.498 billion. However, in year 2010 it then dropped to NGN102.325 billion with
relative negative figure of 69% and finally in 2011, it grew with another 30% increase that is,
NGN133.262 billion.
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2
The analysis depicted in the chart that follows, clearly shows the years, expenditure items and
the corresponding expenditure amounts in NGN Millions.
Education
2011
Health6
N' million
Water Resources8
Electricity
2010
Agriculture
N' million
Transportation
2009
Environment, Drainages & Sewages
Governance
N' million
Land Jetty
2008
Road Bridges
Housing/Civic Centre/Town Hall
N' million
Skilled Acquisition/Youth Dev
2007
Masterplan
Proj. Security & Logistics
N' million
Others
0
50000
100000
150000
200000
250000
300000
350000
4.3 Total Revenue against Total Capital Expenditure
Table 17: Total Revenue v. Total Capital Expenditure
Total Revenue
Total CAPEX.
Difference
A
B
(A – B ) = C
2007
64,721,184,200
164,173,000,000
(99,451,815,800)
2008
84,789,964,000
259,415,500,000
(174,625,536,000)
2009
141,574,918,190
325,497,800,000
(183,922,881,810)
2010
135,096,525,920
102,325,000,000
32,771,525,920
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2
2011
167,778,180,627
133,262,000,000
34,516,180,627
The comparison of the annual total revenue with the capital expenditure for the five years
indicated that during the period 2007 to 2009 the Commission's capital must have been grossly
financed from the development Fund while 2010 and 2011indicated positive outturns. These
figures stated on the templates in respect of the Commission's capital expenditures were neither
reconcilable with the audited financial statements nor the management accounts.
2011
2010
Total CAPEX. B
2009
Total Revenue A
2008
2007
-
100,000,000,000
200,000,000,000
300,000,000,000
35
400,000,000,000
Confidential
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2
4.4 Components of the Capital Expenditure
Table 18: Niger Delta Development Commission's Projects Nominal Roll 2007 - 2011
ABIA
AKWA IBOM
BAYELSA
CROSS RIVER
DELTA
EDO
IMO
ONDO
RIVERS
REGIONAL
% WORK CERTIFIED
% ANNUAL CHANGE
TOTAL
ONGOING
COMPLETED
TOTAL
2007-2011
ONGOING
TOTAL
COMPLETED
2011
ONGOING
COMPLETED
TOTAL
ONGOING
TOTAL
ONGOING
TOTAL
2010
COMPLETED
2009
COMPLETED
2008
ONGOING
COMPLETED
2007
STATES
YEARS
2
6
7
1
4
0
5
1
35
9
9
22
21
7
21
4
4
1
67
16
11
28
28
8
25
4
9
2
102
25
1
1
2
0
8
6
4
0
13
27
0
6
9
4
9
3
2
1
15
3
1
7
11
4
17
9
6
1
28
30
0
3
4
1
4
2
1
1
12
16
7
13
13
6
16
8
10
1
59
11
7
16
17
7
20
10
11
2
71
27
3
5
4
1
3
1
2
3
7
31
23
53
39
17
59
19
34
20
206
8
26
58
43
18
62
20
36
23
213
39
2
3
2
2
2
2
2
2
2
25
19
34
23
19
61
21
31
32
103
6
21
37
25
21
63
23
33
34
105
31
8
18
19
5
21
11
14
7
69
108
58
128
105
53
166
55
81
55
450
44
66
146
124
58
187
66
95
62
519
152
70
172
242
62
52
114
44
144
188
60
478
538
44
349
393
280
1,195
1,475
29%
71%
100%
54%
46%
100%
23%
77%
100%
11%
89%
100%
11%
89%
100%
19%
81%
100%
(11%)
(70%)
(53%)
(29%)
177%
65%
36%
232%
186%
(27%)
(27%)
(27%)
The project performances over the five years (2007 - 2011) under review have been below an average of 19 percent in terms of the
number completed. The number of projects awarded during the period under review was 1,475 of which 280 was completed while
1,195 projects were yet to be completed.
The project’s non-performance cut across the five years under review: in the year 2007, projects numbering 242 was awarded and 70
recorded completed while 172 projects were ongoing. In the year 2008, the projects awarded were 114 out of which 62 projects were
completed and 52 were tagged ongoing. More so, in the year 2009 the projects awarded were 188 out of which 44 were completed and
144 were not completed. In the year 2010, projects awarded were 538 out of which 60 projects were certified completed and 478
projects were not completed. In the year 2011, projects awarded were 393 out of which 44 were recordedas completed and 349
projects were yet to be completed.
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Table 19: Niger Delta Development Commission's Projects Contract Sum on Classification Basis 2007 - 2011
WORK CERTIFIED
CONTRACT AWARDED
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
CUMMULATIVE 2007-2011
CONTRACT AWARDED
2011
CONTRACT AWARDED
2010
CONTRACT AWARDED
2009
WORK CERTIFIED
WORK CERTIFIED
CLASSIFICATION
JETTY/EROSION/RECLAM
ROAD & BRIDGE
HOUSING/TOWN HALLS
ELECTRICFICATION
WATER PROJECTS
EDU. INFRAST & DEV.
HOSPITAL & O/MEDICAL
SKILL ACQU./YOUTH DEV.
AGRIC DEV. PROG
NDDC MASTER PLAN
PROJ.
SECURITY
&
LOGISTICS
OTHERS
2008
CONTRACT AWARDED
2007
CONTRACT AWARDED
YEARS
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
17,904,520
59,765,720
0
4,643,810
1,518,305
247,922
49,103
0
1,409,470
32,000
9,159,539
28,921,236
0
539,903
848,987
189,750
39,585
0
517,671
32,000
5,330,304
7,051,895
145,750
337,985
331,067
0
1,253,342
0
573,611
182,699
2,274,562
2,474,939
64,170
292,109
176,819
0
1,156,643
0
515,461
40,296
8,328,187
60,109,544
0
934,283
190,377
2,217,839
217,176
0
371,113
49,835
1,679,730
13,439,302
0
682,981
109,798
258,743
217,176
0
227,126
0
20,106,755
98,720,630
683,678
4,013,809
2,977,826
547,522
1,223,713
995,000
0
0
2,748,699
14,981,020
0
868,395
517,444
57,353
594,841
0
0
0
10,124,308
75,086,855
642,009
23,701,284
3,988,123
791,754
3,301,605
534,434
4,001,265
0
624,170
6,302,867
57,725
6,444,991
340,516
439,760
3,171,297
534,434
3,665
0
61,794,074
300,734,644
1,471,437
33,631,172
9,005,698
3,805,038
6,044,940
1,529,434
6,355,460
264,533
16,486,699
66,119,363
121,895
8,828,379
1,993,565
945,605
5,179,543
534,434
1,263,924
72,296
27%
22%
8%
26%
22%
25%
86%
35%
20%
27%
0
396,631
0
338,078
0
1,751,206
0
1,751,206
105,252
787,200
81,154
571,413
367,768
66,967,444
157,716
13,264,859
0
2,016,849
0
2,020,479
473,021
71,919,330
238,870
17,946,035
50%
25%
85,967,480
40,586,750
16,957,859
8,746,205
73,310,807
17,267,423
196,604,146
33,190,326
124,188,486
19,939,903
497,028,780
119,730,607
24%
47%
52%
24%
17%
16%
The assessment of contract sum in comparison to the level of work certified, it was observed that within the five years under review
(2007-2011) the Commission has awarded contracts to the value of NGN497.028 billion. However, the aggregate value of work
certified was stated at NGN119.73 billion which indicated 24 percent performance rate.
The lower rate of projects’ performance cuts across the various classifications of programmes and projects. On the other hand, ahigh
performance rate of 86 percent and 50 percent was recorded in respect of hospital & other medical equipment and security & logistics
programmes respectively.
The skill acquisition and youth development recorded a 35 percent completion rate. The annual completion rate of 52 percent was
recorded in the year 2008 being the highest in the five years (2007-2011) under review while the least outturn was recorded in the year
2011 at the rate of 16 percent completion.
Confidential
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Table 20: Niger Delta Development Commission's Projects Contract Sum on State Basis 2007 - 2011
ABIA
AKWA IBOM
BAYELSA
CROSS RIVER
DELTA
EDO
IMO
ONDO
RIVERS
REGIONAL NDDC HQ.
WORK CERTIFIED
CONTRACT
AWARDED
WORK CERTIFIED
CONTRACT
AWARDED
WORK CERTIFIED
2011
CONTRACT
AWARDED
WORK CERTIFIED
2010
CONTRACT
AWARDED
CONTRACT
AWARDED
CONTRACT
AWARDED
2009
WORK CERTIFIED
2008
WORK CERTIFIED
2007
STATES
YEARS
N'000
975,214
5,185,700
49,445,344
481,873
1,648,012
433,596
461,301
309,143
21,287,508
5,739,789
N'000
755,354
3,558,106
21,838,312
515,173
1,365,428
277,582
158,634
9,047
11,127,460
981,653
N'000
29,996
4,860,659
5,371,429
35,940
541,009
359,789
119,231
1,692,713
609,577
3,337,518
N'000
29,996
1,338,611
2,334,013
34,803
351,557
311,983
118,458
654,264
501,220
3,071,300
N'000
4,357,824
8,232,797
19,322,133
3,377,107
1,662,473
4,839,758
3,067,466
1,255,477
25,673,993
1,521,780
N'000
1,374,848
2,316,443
3,516,748
537,375
764,760
2,647,427
1,616,010
65,520
3,232,898
1,195,394
N'000
3,484,125
9,396,995
11,432,860
1,567,730
31,909,438
5,841,727
18,709,530
20,791,420
33,470,615
59,999,706
N'000
209,509
1,615,623
2,991,975
288,636
2,170,709
105,041
2,128,576
412,255
9,537,998
13,730,007
N'000
2,533,816
22,719,802
2,914,250
2,717,233
24,060,651
8,321,953
13,913,577
3,106,013
28,476,783
15,424,407
N'000
171,800
564,630
845,504
179,014
2,894,308
601,091
1,070,762
760,969
2,849,780
10,002,045
N'000
11,380,975
50,395,953
88,486,017
8,179,882
59,821,583
19,796,823
36,271,106
27,154,765
109,518,475
86,023,200
N'000
2,541,506
9,393,413
31,526,552
1,555,000
7,546,762
3,943,123
5,092,441
1,902,055
27,249,357
28,980,399
22%
19%
36%
19%
13%
20%
14%
7%
25%
34%
85,967,480
40,586,750
16,957,859
8,746,205
73,310,807
17,267,423
196,604,146
33,190,326
124,188,486
19,939,903
497,028,780
119,730,607
24%
(80%)
(78%)
332%
97%
168%
92%
(37%)
(40%)
The evaluation of the projects performance rates across the constituent states of the NDDC
The Bayelsa State outturns with 36 percent performance rate while the headquarters recorded 34 percent completion and least
performance rate was recorded in Ondo State with 7 percent outturns.
Confidential
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4.5 Summary Composition of the NDDC Expenditure
Table 21: Breakdown of NDDC Expenditure
2011
2010
2009
2008
2007
TOTAL
N million N million Nmillion Nmillion Nmillion N million
13,880
10,107
7,053
6,666
5,194
42,900
RECURRENT PAYMENTS
DEVELOPMENTAL
PROJECTS
NDDC -FIXED ASSETS
133,262
102,325
63,083
64,016
52,404
415,089
107
76
201
603
261
1,248
147,249
112,508
70,336
71,285
57,859
459,237
The Commission's expenditures over the 2007 to 2011 fiscal years have been tilted towards the developmental projects and
programmes. The table above indicates that expenditure on development projects and programmes recorded an average of 90 percent
of total expenditures for the five years under review while recurrent expenditures accounted for an average of 9.3 percent and the fixed
assets represents less than 1 percent of total annual expenditures for the relevant years.
This is further illustrated in the expenditure components and NDDC expenditure charts that follow:
EXPENDITURE COMPONENTS
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0
133,262
102,325
63,083
64,016
52,404
RECURRENT PAYMENTS
DEVELOPMENT PROJECTS
13,880
10,107
7,053
6,666
5,194
603
261
201
107
76
N million N million N million N million N million
2011
2010
2009
2008
2007
NDDC -FIXED ASSETS
Confidential
2
2
PERCENTATGE
NDDC EXPENDITURES (2007 - 2011)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
NDDC -FIXED ASSETS,
261
133,262
N million
2011
102,325
N million
2010
63,083
N million
2009
YEARS
64,016
DEVELOPMENT
PROJECTS, 52,404
RECURRENT
PAYMENTS, 5,194
N million
2008
N million
2007
Confidential
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5
NDDC State Projects
5.1 Abia State Projects
Table 22: Breakdown of Abia State Projects
WORK CERTIFIED
CONTRACT AWARDED
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
CONTRACT AWARDED
2011
CONTRACT AWARDED
2010
CONTRACT AWARDED
2009
WORK CERTIFIED
WORK CERTIFIED
CLASSIFICATION / STATES
ABIA
ROAD & BRIDGE
HOUSING/TOWN HALLS
ELECTRICFICATION
WATER PROJECTS
OTHERS
2008
CONTRACT AWARDED
2007
CONTRACT AWARDED
YEARS
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
0
854,563
0
41,144
79,508
0
0
0
678,107
0
31,540
45,707
0
0
0
0
0
0
0
29,996
0
0
0
0
0
0
29,996
0
0
4,285,569
0
4,169
39,754
0
28,332
0
1,322,293
0
3,810
32,100
0
16,645
55,000
1,574,072
247,150
526,351
575,375
43,436
462,740
51,840
69,568
0
77,174
10,927
0
0
15,000
1,265,373
0
1,195,740
42,553
0
15,150
15,000
0
0
138,020
0
0
18,780
70,000
7,979,578
247,150
1,767,404
737,190
73,432
506,222
66,840
2,069,967
0
250,544
88,734
29,996
35,425
95%
26%
0%
14%
12%
41%
7%
975,214
755,354
29,996
29,996
4,357,824
1,374,848
3,484,125
209,509
2,533,816
171,800
11,380,975
2,541,506
22%
77%
100%
32%
6%
7%
The assessment of Abia State collective performance rate indicated 22 percent for the five years under review. The landing
jetty/erosion site/land reclamation projects accounted for 95 percent performance rate while housing/town halls projects recorded nil
percent performance rates. The annual assessments indicated that the year 2008 recorded 100 percent performance outturns while the
year 2010 recorded the least outturns of 6 percent performance rate.
2
2
Confidential
5.2 Akwa Ibom State Projects
Table 23: Breakdown of Akwa Ibom State Projects
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
CONTRACT AWARDED
CONTRACT AWARDED
2011
CONTRACT AWARDED
2010
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
CLASSIFICATIONS
2009
CONTRACT AWARDED
2008
CONTRACT AWARDED
2007
CONTRACT AWARDED
YEARS
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
0
4,731,506
0
371,274
79,508
0
3,413
0
0
3,426,322
0
119,329
12,456
0
0
0
0
4,701,367
145,750
13,542
0
0
0
0
0
1,270,058
64,170
4,383
0
0
0
0
15,000
8,110,874
0
73,590
0
0
5,000
28,332
13,104
2,216,174
0
63,394
0
0
5,000
18,770
929,561
4,785,087
358,739
686,839
381,091
43,000
0
2,212,678
638,820
836,238
0
61,180
16,354
0
0
63,030
6,189,111
13,694,117
179,369
913,373
1,740,167
0
3,665
0
60,000
278,744
0
208,161
14,060
0
3,665
0
7,133,672
36,022,952
683,859
2,058,618
2,200,765
43,000
12,078
2,241,010
711,924
8,027,537
64,170
456,447
42,870
0
8,665
81,800
10%
22%
9%
22%
2%
0%
72%
4%
5,185,700
3,558,106
4,860,659
1,338,611
8,232,797
2,316,443
9,396,995
1,615,623
22,719,802
564,630
50,395,953
9,393,413
19%
AKWA IBOM
ROAD & BRIDGE
HOUSING/TOWN HALLS
ELECTRICFICATION
WATER PROJECTS
AGRIC DEV. PROG
OTHERS
69%
28%
28%
17%
2%
The assessment of Akwa Ibom State collective performance rate indicated 19 percent for the five years under review. The agricultural
development projects accounted for 72 percent performance rate while hospital and other medical infrastructures projects recorded nil
percent performance rates. The annual assessments indicates that the year 2007 recorded 69 percent performance outturns while the
year 2011 recorded the least outturns of 2 percent performance rate.
Confidential
2
2
5.3
Bayelsa State Projects
Table 24: Breakdown of Bayelsa State Projects
BAYELSA
ROAD & BRIDGE
ELECTRICFICATION
WATER PROJECTS
EDU. INFRAST & DEV.
AGRIC DEV. PROG
OTHERS
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
CONTRACT AWARDED
CONTRACT AWARDED
2011
CONTRACT AWARDED
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
2010
CONTRACT AWARDED
2009
CONTRACT AWARDED
2008
CONTRACT AWARDED
2007
CLASSIFICATION
YEARS
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
1,904,003
47,131,264
141,785
261,292
0
7,000
0
1,466,173
20,155,398
122,341
87,399
0
7,000
0
5,249,108
0
64,571
0
0
57,750
0
2,274,562
0
36,351
0
0
23,100
0
6,593,539
12,654,706
28,656
3,750
13,150
0
28,332
529,393
2,932,923
24,643
3,579
7,441
0
18,770
6,565,841
3,683,248
332,864
252,347
249,500
0
349,061
1,457,055
1,403,641
100,250
31,029
0
0
0
126,000
1,942,695
460,101
328,364
0
0
57,090
126,000
441,163
118,522
102,729
0
0
57,090
20,438,491
65,411,913
1,027,977
845,753
262,650
64,750
434,483
5,853,183
24,933,125
402,106
224,736
7,441
30,100
75,860
29%
38%
39%
27%
3%
46%
17%
49,445,344
21,838,312
5,371,429
2,334,013
19,322,133
3,516,748
11,432,860
2,991,975
2,914,250
845,504
88,486,017
31,526,552
36%
44%
43%
18%
26%
29%
The assessment of Bayelsa State’s combined performance rate indicates 36 percent for the five years under review. The landing
agricultural development projects accounted for 46 percent performance rate while educational infrastructure and development
projects recorded 3 percent performance rates. The annual assessments indicated that the year 2007 recorded 44 percent performance
outturns while the year 2009 recorded the least outturns of 18 percent performance rate.
Confidential
2
2
5.4 Cross River State Projects
Table 25: Breakdown of Cross River State’s Projects
CROSS RIVER
ROAD & BRIDGE
ELECTRICFICATION
WATER PROJECTS
EDU. INFRAST & DEV.
OTHERS
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
CONTRACT AWARDED
CONTRACT AWARDED
2011
CONTRACT AWARDED
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
2010
CONTRACT AWARDED
2009
CONTRACT AWARDED
2008
CONTRACT AWARDED
2007
CLASSIFICATION
YEARS
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
0
300,000
22,858
159,015
0
0
0
0
386,139
22,579
106,456
0
0
0
0
4,145
31,795
0
0
0
0
0
4,145
30,658
0
0
0
0
0
3,322,062
26,712
0
0
0
28,332
0
486,776
23,169
0
0
0
27,430
30,000
858,374
95,259
187,397
154,000
0
242,700
30,000
172,278
62,808
0
0
0
23,550
42,000
2,053,535
306,724
184,665
0
130,308
0
42,000
87,416
49,598
0
0
0
0
72,000
6,538,116
483,349
531,077
154,000
130,308
271,032
72,000
1,136,753
188,812
106,456
0
0
50,980
100%
17%
39%
20%
0%
0%
19%
481,873
515,173
35,940
34,803
3,377,107
537,375
1,567,730
288,636
2,717,233
179,014
8,179,882
1,555,000
19%
107%
97%
16%
18%
7%
The assessment of Cross River State summative performance rate indicated 19 percent for the five years under review. The landing
jetty/erosion site/land reclamation projects accounted for 100 percent performance rate while hospital infrastructure/other medical
equipment and educational infrastructure & development projects recorded nil percent performance rates. The annual assessments
indicated that the year 2007 recorded 107 percent performance outturns which suggested possible contract variation traceable to road
construction and bridges while the year 2011 recorded the least outturns of 7 percent performance rate.
Confidential
2
2
5.5 Delta State Projects
Table 26: Breakdown of Delta State Projects
DELTA
ROAD & BRIDGE
ELECTRICFICATION
WATER PROJECTS
EDU. INFRAST & DEV.
OTHERS
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
CONTRACT AWARDED
CONTRACT AWARDED
2011
CONTRACT AWARDED
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
2010
CONTRACT AWARDED
2009
CONTRACT AWARDED
2008
CONTRACT AWARDED
2007
CLASSIFICATION
YEARS
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
0
1,082,578
22,858
525,861
16,716
0
0
0
1,069,204
17,971
268,503
9,750
0
0
81,196
68,218
80,100
251,560
0
59,936
0
0
68,075
79,944
143,603
0
59,936
0
90,000
550,369
48,717
123,846
790,213
30,996
28,332
78,624
520,083
46,771
52,214
17,302
30,996
18,770
417,659
29,537,436
547,559
143,429
108,022
0
1,155,333
157,936
1,889,941
29,432
72,047
21,353
0
0
226,765
10,617,912
12,680,705
328,882
154,817
0
51,570
72,000
1,259,347
1,434,379
77,013
0
0
51,570
815,621
41,856,512
13,379,939
1,373,577
1,069,768
90,932
1,235,235
308,560
4,806,650
1,608,497
613,379
48,404
90,932
70,340
38%
11%
12%
45%
5%
100%
6%
1,648,012
1,365,428
541,009
351,557
1,662,473
764,760
31,909,438
2,170,709
24,060,651
2,894,308
59,821,583
7,546,762
13%
83%
65%
46%
7%
12%
The assessment of Delta State summative performance rate indicates 13 percent for the five years under review. The hospital
infrastructure/other medical equipment projects accounted for 100 percent performance rate while educational infrastructure &
development projects recorded 5 percent performance rates. The annual assessments indicated that the year 2007 recorded 83 percent
performance outturns while the year 2010 recorded the least outturns of 7 percent performance rate.
Confidential
2
2
5.6
Edo State Projects
Table 27: Breakdown of Edo State Projects
EDO
ROAD & BRIDGE
ELECTRICFICATION
WATER PROJECTS
AGRIC DEV. PROG
OTHERS
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
CONTRACT AWARDED
CONTRACT AWARDED
2011
CONTRACT AWARDED
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
2010
CONTRACT AWARDED
2009
CONTRACT AWARDED
2008
CONTRACT AWARDED
2007
CLASSIFICATION
YEARS
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
0
300,000
4,572
39,754
0
89,271
0
0
180,898
4,536
13,052
0
79,097
0
0
129,372
0
79,508
150,909
0
0
0
127,969
0
33,216
150,798
0
0
40,000
4,757,711
13,715
0
0
0
28,332
34,944
2,580,091
13,622
0
0
0
18,770
30,000
4,821,200
212,729
130,552
0
0
647,246
30,000
46,578
3,995
4,368
0
0
20,100
40,000
7,622,818
428,631
230,504
0
0
0
30,000
513,450
57,641
0
0
0
0
110,000
17,631,100
659,646
480,318
150,909
89,271
675,579
94,944
3,448,986
79,792
50,636
150,798
79,097
38,870
86%
20%
12%
11%
100%
89%
6%
433,596
277,582
359,789
311,983
4,839,758
2,647,427
5,841,727
105,041
8,321,953
601,091
19,796,823
3,943,123
20%
64%
87%
55%
2%
7%
The assessment of Edo State summative performance rate indicates 20 percent for the five years under review. The hospital
infrastructure/other medical equipment projects accounted for 100 percent performance rate while other miscellaneous projects
recorded 6 percent performance rates. The annual assessments indicated that the year 2008 recorded 87 percent performance outturns
while the year 2010 recorded the least outturns of 2 percent performance rate.
Confidential
2
2
5.7 Imo State Projects
Table 28: Breakdown of Imo State Projects
IMO
ROAD & BRIDGE
HOUSING/TOWN HALLS
ELECTRICFICATION
WATER PROJECTS
EDU. INFRAST & DEV.
OTHERS
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
CONTRACT AWARDED
CONTRACT AWARDED
2011
CONTRACT AWARDED
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
2010
CONTRACT AWARDED
2009
CONTRACT AWARDED
2008
CONTRACT AWARDED
2007
CLASSIFICATION
YEARS
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
0
383,800
0
26,294
0
51,206
0
0
0
132,959
0
25,676
0
0
0
0
0
0
0
27,401
0
0
91,830
0
0
0
0
26,498
0
0
91,960
0
1,414,648
1,620,104
0
4,383
0
0
0
28,332
870,785
722,479
0
3,977
0
0
0
18,770
7,838,189
9,533,499
0
254,816
253,832
0
0
829,194
30,000
2,036,163
0
0
38,113
0
0
24,300
15,000
13,278,056
204,042
367,979
48,500
0
0
0
15,000
999,462
0
56,300
0
0
0
0
9,267,837
24,815,459
204,042
680,873
302,332
51,206
91,830
857,527
915,785
3,891,062
0
112,451
38,113
0
91,960
43,070
10%
16%
0%
17%
13%
0%
100%
5%
461,301
158,634
119,231
118,458
3,067,466
1,616,010
18,709,530
2,128,576
13,913,577
1,070,762
36,271,106
5,092,441
14%
34%
99%
53%
11%
8%
The assessment of Imo State summative performance rate indicates 14 percent for the five years under review. The hospital
infrastructure/other medical equipment projects accounted for 100 percent performance rate while housing and town hall and civic
centres’ projects recorded nil percent performance rates. The annual assessments indicated that the year 2008 recorded 99 percent
performance outturns while the year 2011 recorded the least outturns of 8 percent performance rate.
Confidential
2
2
5.8 Ondo State Projects
Table 29: Breakdown of Ondo State Projects
ONDO
ROAD & BRIDGE
HOUSING/TOWN HALLS
ELECTRICFICATION
WATER PROJECTS
EDU. INFRAST & DEV.
OTHERS
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
CONTRACT AWARDED
CONTRACT AWARDED
2011
CONTRACT AWARDED
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
2010
CONTRACT AWARDED
2009
CONTRACT AWARDED
2008
CONTRACT AWARDED
2007
CLASSIFICATION
YEARS
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
0
300,000
0
9,143
0
0
0
0
0
0
0
9,047
0
0
0
0
0
1,692,713
0
0
0
0
0
0
0
654,264
0
0
0
0
0
0
75,000
0
0
0
0
1,180,477
0
0
65,520
0
0
0
0
0
0
0
45,000
19,957,543
77,789
516,068
47,825
0
43,436
103,759
43,104
188,544
0
151,447
0
0
0
29,160
157,830
1,837,843
192,432
549,704
313,216
54,987
0
0
75,000
536,872
17,133
79,088
52,876
0
0
0
277,830
23,788,099
270,221
1,074,915
361,041
1,235,464
43,436
103,759
183,624
1,379,679
17,133
239,583
52,876
0
0
29,160
66%
6%
6%
22%
15%
0%
0%
28%
309,143
9,047
1,692,713
654,264
1,255,477
65,520
20,791,420
412,255
3,106,013
760,969
27,154,765
1,902,055
7%
3%
39%
5%
2%
24%
The assessment of Ondo State summative performance rate indicates 7 percent for the five years under review. The landing
jetty/erosion/reclamation projects accounted for 66 percent performance rate while educational infrastructure & development and
hospital infrastructure/other medical equipment projects recorded nil percent performance rates. The annual assessments indicated that
the year 2008 recorded 39 percent performance outturns while the year 2010 recorded the least outturns of 2 percent performance rate.
Confidential
2
2
5.9 Rivers State Projects
Table 30: Breakdown of Rivers State Projects
RIVERS
ROAD & BRIDGE
HOUSING/TOWN HALLS
ELECTRICFICATION
WATER PROJECTS
EDU. INFRAST & DEV.
PROJ.
SECURITY
&
LOGISTICS
OTHERS
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
CONTRACT AWARDED
CONTRACT AWARDED
2011
CONTRACT AWARDED
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
2010
CONTRACT AWARDED
2009
CONTRACT AWARDED
2008
CONTRACT AWARDED
2007
CLASSIFICATION
YEARS
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
16,000,516
4,677,416
0
187,105
373,368
0
49,103
0
7,693,365
2,892,209
0
186,886
315,415
0
39,585
0
0
451,487
0
120,576
0
0
37,513
0
0
350,427
0
114,276
0
0
36,517
0
100,000
24,808,149
0
663,784
23,027
0
0
0
87,360
2,658,483
0
433,038
21,905
0
0
0
3,960,505
23,814,946
0
841,324
1,005,978
0
499,000
995,000
74,944
8,249,231
0
382,108
344,606
0
0
0
3,312,601
22,774,506
66,165
1,543,238
771,272
9,000
0
0
189,170
2,186,413
40,592
329,719
93,839
10,047
0
0
23,373,623
76,526,504
66,165
3,356,028
2,173,646
9,000
585,616
995,000
8,044,839
16,336,764
40,592
1,446,027
775,765
10,047
76,102
0
34%
21%
61%
43%
36%
112%
13%
0%
0
0
0
0
0
0
0
0
50,700
28,332
32,111
0
367,768
1,986,093
157,716
329,393
0
0
0
0
418,468
2,014,426
189,827
329,393
45%
16%
21,287,508
11,127,460
609,577
501,220
25,673,993
3,232,898
33,470,615
9,537,998
28,476,783
2,849,780
109,518,475
27,249,357
25%
52%
82%
13%
28%
10%
The assessment of Rivers State cumulative performance rate indicates 25 percent for the five years under review. The educational
infrastructure & development projects accounted for 112 percent performance rate and this suggests the existence of possible contract
variation. The skills acquisition and youth development programmes projects recorded nil percent performance rates. The annual assessments
indicated that the year 2008 recorded 82 percent performance outturns while the year 2011 recorded the least outturns of 10 percent
performance rate.
Confidential
2
2
5.10 Regional Projects of NDDC
Table 31: Breakdown of Regional Projects of the NDDC
HQ - NDDC
ROAD & BRIDGE
ELECTRICFICATION
EDU. INFRAST & DEV.
AGRIC DEV. PROG
NDDC MASTER PLAN
PROJ.
SECURITY
&
LOGISTICS
OTHERS
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
CONTRACT AWARDED
CONTRACT AWARDED
2011
CONTRACT AWARDED
WORK CERTIFIED
WORK CERTIFIED
WORK CERTIFIED
2010
CONTRACT AWARDED
2009
CONTRACT AWARDED
2008
CONTRACT AWARDED
2007
CLASSIFICATION
YEARS
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
N'000
0
4,593
3,816,779
180,000
0
0
1,309,786
32,000
0
0
0
180,000
0
0
431,575
32,000
0
4,593
0
0
883,158
0
515,861
182,699
0
0
0
0
787,437
0
492,361
40,296
0
0
70,557
234,000
186,181
0
366,113
49,835
0
0
70,557
234,000
186,181
0
222,126
0
235,000
155,225
0
36,000
594,841
0
0
0
235,000
88,840
0
36,000
594,841
0
0
0
0
0
5,255,088
572,950
3,171,297
534,434
3,997,600
0
0
0
3,973,563
429,713
3,171,297
534,434
0
0
235,000
164,411
9,142,424
1,022,950
4,835,476
534,434
6,189,361
264,533
235,000
88,840
4,044,120
879,713
4,739,755
534,434
1,146,063
72,296
100%
54%
44%
86%
98%
100%
19%
27%
0
396,631
0
338,078
0
1,751,206
0
1,751,206
54,553
560,541
49,043
433,487
0
58,978,641
0
12,775,326
0
1,893,039
0
1,893,039
54,553
63,580,058
49,043
17,191,136
90%
27%
5,739,789
981,653
3,337,518
3,071,300
1,521,780
1,195,394
59,999,706
13,730,007
15,424,407
10,002,045
86,023,200
28,980,399
34%
17%
92%
79%
23%
65%
The assessment of projects handled by the NDDC headquarters cumulative performance rate indicates 34 percent for the five years
under review. The land jetty/ erosion/ reclamation and skill acquisition & youth development projects accounted for 100 percent
performance rates while the master plan of the region and other miscellaneous projects accounted for 27 percent performance rates
respectively. The annual assessments indicates that the year 2008 recorded 92 percent performance outturns while the year 2007
recorded the least outturns of 17 percent performance rate.
6
Reconciliation of Projects Master list and Financial Statements
Table 32: Result of reconciling the Project Master list and the Financial Statements
CUMMULATIVE
TODATE
OPENING BALANCE
PRIOR 2007
2007
2008
2009
2010
2011
N'Million
N'Million
N'Million
N'Million
N'Million
N'Million
N'Million
OPENING BALANCE
0
126,497
162,604
169,414
218,541
358,341
0
CONTRACT SUM (AWARDED)
398,791
85,967
16,958
73,311
196,604
124,188
895,820
ADVANCE PAYMENTS
(149,105)
(25,873)
(2,663)
(10,992)
(36,767)
(16,716)
(242,116)
INTERIM PAYMENT CERTIFICATES
(123,189)
(23,988)
(7,484)
(13,192)
(20,038)
(18,110)
(206,000)
OUTSTANDING COMMIMENTS
126,497
162,604
169,414
218,541
358,341
447,703
447,703
NDDC FINANACIALS
52,404
64,016
63,083
102,325
133,262
415,089
PROJECT MASTER LIST
49,861
10,147
24,184
56,805
34,826
175,823
DIFFERENCES
2,543
53,869
38,899
45,521
98,436
239,267
5%
84%
62%
44%
74%
58%
RECONCILIATIONS:
The analysis and evaluation of the NDDC financial statements vis a vis the project monitoring list
made available indicated irreconcilable differences between the additions of advance payment and
interim payment certificates on the project master list and the payment made as stated in the financial
statements of the Commission.
The project master list stated that NGN175.823 billion has been paid while the financial statements
indicated that NGN415.089 billion was paid within the five years period (2007 - 2011). About 58
percent un-reconciled differences of N239.267 billion still exist.
In 2007, a difference of NGN2.543 billion that is, 5 percent was observed; the year 2008, indicated
NGN53.869 billion that is, 84 percent difference. In 2009, the difference was NGN38.899 billion that
is 62 percent while the 2010 and 2011 indicated NGN45.521 billion and NGN98.436 that is, 44 and 74
percent difference respectively.
51
6.1 Prior to 2007 NDDC Development Projects and Programmes
CUMULATIVE
PERMANENT WORKS
OUTSDING RETENTION
MOBILIZATION
RECOVERED
-
OUTSTANDING
COMMITMENT
ADVANCE PAYMENTS
2007
CONTRACT SUM
PRIOR
YEAR
CLASSIFICATION
TOTAL IPC PAYMENTS
Table 33: Breakdown of sums spent before 2007
N'000
N'000
N'000
N'000
N'000
N'000
N'000
83,779,304
32,878,753
22,382,512
28,418,202
15,269,391
1,406,265
37,976,729
ROAD & BRIDGE
209,520,842
69,493,014
60,946,250
77,534,539
41,593,705
3,665,810
105,221,307
HOUSING/TOWN HALLS
6,751,960
5,191,736
1,533,458
26,767
5,188,779
5,663
6,726,204
ELECTRICFICATION
16,993,445
5,856,601
8,519,647
2,617,416
5,260,583
295,393
13,931,521
WATER PROJECTS
26,591,831
7,708,195
10,140,913
8,773,106
5,325,013
488,890
15,883,126
EDU. INFRAST & DEV.
13,019,736
3,388,710
6,791,495
2,837,026
2,471,987
276,969
9,799,210
5,153,123
2,056,055
1,324,613
1,772,276
800,645
48,726
2,065,343
8,823,507
5,137,504
2,903,003
783,000
1,435,275
0
7,257,507
AGRIC DEV. PROG
7,412,948
4,417,302
2,850,344
145,302
1,495,573
848
7,278,628
NDDC MASTER PLAN
457,354
214,562
242,792
0
214,562
0
457,354
ENVIRON & WASTE MGT.
1,559,234
134,539
1,423,161
1,534
134,539
163
1,557,753
MASS TRANSIT
2,105,910
1,615,086
490,823
0
1,615,086
0
2,105,910
PROJ. SECURITY & LOGISTICS
9,278,878
5,421,485
2,715,326
1,142,067
4,986,578
116,302
7,790,724
OTHERS
7,342,749
5,591,189
924,530
827,030
5,581,866
0
6,506,396
398,790,821
149,104,731
123,188,865
124,878,265
91,373,582
6,305,029
224,557,710
GRAND TOTAL
Prior to the five years under review, the NDDC priority programmes and projects have been on
construction of roads and bridges, landing jetties/erosion/land reclamation with least emphasis on
environment/waste management and regional master plan. The allocation rate of resources is depicted
in the pie chart below.
1%
0%
PRIOR 2007 CONTRACT
2% 2%
0% 2% 2%
3% 1%
ROAD & BRIDGE
HOUSING/TOWN HALLS
ELECTRICFICATION
WATER PROJECTS
21%
7%
EDU. INFRAST & DEV.
4%
2%
AGRIC DEV. PROG
NDDC MASTER PLAN
ENVIRON & WASTE MGT.
MASS TRANSIT
53%
OTHERS
52
CUMULATIVE
PERMANENT WORKS
OUTSDING RETENTION
MOBILIZATION
RECOVERED
OUTSTANDING
COMMITMENT
TOTAL IPC PAYMENTS
ADVANCE PAYMENTS
CONTRACT SUM
CLASSIFICATION - 2007
Table 34: Project Specific Breakdown in 2007
N'000
N'000
N'000
N'000
N'000
N'000
N'000
17,904,520
5,090,238
5,735,782
7,078,500
3,085,144
381,186
9,159,539
ROAD & BRIDGE
59,765,720
17,796,052
16,297,389
25,589,801
12,433,929
867,446
28,921,236
ELECTRICFICATION
4,643,810
2,040,068
402,929
2,200,813
94,912
12,329
539,903
WATER PROJECTS
1,518,305
378,745
581,273
558,287
259,100
28,814
848,987
EDU. INFRAST & DEV.
247,922
91,809
111,646
44,467
78,004
488
189,750
49,103
10,439
27,888
10,776
8,214
781
39,585
AGRIC DEV. PROG
1,409,470
388,779
508,941
511,750
22,318
0
517,671
NDDC MASTER PLAN
32,000
16,000
16,000
0
0
0
32,000
OTHERS
396,631
60,726
306,478
29,427
17,500
0
338,078
85,967,480
25,872,856
23,988,324
36,023,821
15,999,121
1,291,043
40,586,750
GRAND TOTAL
The 2007 projects and programmes profile of the Commission indicates that priority was still placed
on constructions of road and bridge, landing jetty/erosion/reclamation with the least emphasis on
hospital and other medical equipment and regional master plan. The allocation rate of resources is
depicted in the pie chart below.
0.29%
1.77%
0.06%
2007 CONTRACTS
1.64% 0.04%
ROAD & BRIDGE
0.46%
ELECTRICFICATION
5.40%
WATER PROJECTS
20.83%
EDU. INFRAST & DEV.
AGRIC DEV. PROG
69.52%
NDDC MASTER PLAN
OTHERS
53
CUMULATIVE
PERMANENT WORKS
OUTSDING RETENTION
MOBILIZATION
RECOVERED
OUTSTANDING
COMMITMENT
TOTAL IPC PAYMENTS
ADVANCE PAYMENTS
CONTRACT SUM
Table 35: Breakdown of 2008 Projects
N'000
N'000
N'000
N'000
N'000
N'000
N'000
5,330,304
1,309,097
1,685,050
2,336,156
565,432
94,016
2,274,562
ROAD & BRIDGE
7,051,895
1,100,147
1,827,559
4,124,188
527,260
101,058
2,474,939
HOUSING/TOWN HALLS
145,750
132,519
11,246
1,985
52,924
0
64,170
ELECTRICFICATION
337,985
28,379
276,036
33,570
12,572
6,929
292,109
WATER PROJECTS
331,067
53,635
138,218
139,214
36,685
7,502
176,819
1,253,342
0
1,252,346
996
0
0
1,156,643
AGRIC DEV. PROG
573,611
11,750
515,461
46,400
0
0
515,461
NDDC MASTER PLAN
182,699
27,405
27,037
128,257
0
0
40,296
OTHERS
1,751,206
0
1,751,206
0
0
0
1,751,206
16,957,859
2,662,933
7,484,160
6,810,766
1,194,873
209,506
8,746,205
GRAND TOTAL
on construction of roads and bridges, landing jetty/erosion/reclamation with least emphasis on water
projects and regional master plan. The allocation rate of resources is depicted in the pie chart below.
2008 CONTRACT
1.08%
7.39%
10.33%
ROAD & BRIDGE
0.00%
HOUSING/TOWN HALLS
3.38%
ELECTRICFICATION
31.43%
1.95%
WATER PROJECTS
1.99%
AGRIC DEV. PROG
NDDC MASTER PLAN
0.86%
OTHERS
41.58%
54
CUMULATIVE
PERMANENT WORKS
OUTSDING RETENTION
MOBILIZATION
RECOVERED
OUTSTANDING
COMMITMENT
TOTAL IPC PAYMENTS
ADVANCE PAYMENTS
CONTRACT SUM
N'000
N'000
N'000
N'000
N'000
N'000
N'000
8,328,187
1,177,228
1,483,870
5,667,089
207,420
39,132
1,679,730
ROAD & BRIDGE
60,109,544
9,159,095
9,747,055
40,135,283
2,997,045
626,100
13,439,302
ELECTRICFICATION
934,283
68,391
632,268
233,625
43,534
11,997
682,981
WATER PROJECTS
190,377
19,753
101,422
69,201
7,636
4,216
109,798
EDU. INFRAST & DEV.
2,217,839
400,578
200,983
2,217,069
26,576
1,205
258,743
217,176
0
217,176
0
0
0
217,176
AGRIC DEV. PROG
371,113
93,068
177,255
100,791
0
0
227,126
49,835
7,475
0
42,360
0
0
0
105,252
15,788
64,716
24,748
13,887
4,058
81,154
787,200
50,992
566,828
178,040
16,999
2,460
571,413
73,310,807
10,992,368
13,191,574
48,668,205
3,313,098
689,167
17,267,423
GRAND TOTAL
NDDC MASTER PLAN
PROJ.
SECURITY
LOGISTICS
OTHERS
&
The 2009 projects and programmes profile of the Commission indicates that priority still remained
with construction of roads and bridges, landing jetty/erosion/reclamation with least emphasis on
hospital and other medical equipment and Security & logistics. The allocation rate of resources is
illustrated in the pie chart below.
0.51% 0.14%
0.07%
3.03%
0.26%
0.30%
2009 CONTRACT
1.07%
0.00%
11.36%
ROAD & BRIDGE
ELECTRICFICATION
1.27%
WATER PROJECTS
EDU. INFRAST & DEV.
AGRIC DEV. PROG
81.99%
55
CUMULATIVE
PERMANENT WORKS
OUTSDING RETENTION
MOBILIZATION
RECOVERED
OUTSTANDING
COMMITMENT
TOTAL IPC PAYMENTS
ADVANCE PAYMENTS
CONTRACT SUM
N'000
N'000
N'000
N'000
N'000
N'000
N'000
20,106,755
3,572,437
2,248,608
14,285,710
482,965
22,899
2,748,699
ROAD & BRIDGE
98,720,630
14,621,724
12,152,221
71,797,300
2,554,684
746,754
14,981,020
HOUSING/TOWN HALLS
683,678
102,552
0
581,126
0
0
0
ELECTRICFICATION
4,013,809
521,395
769,280
2,723,134
90,780
45,038
868,395
WATER PROJECTS
2,977,826
503,077
422,612
2,052,137
88,818
25,881
517,444
EDU. INFRAST & DEV.
547,522
76,728
36,000
434,794
16,203
1,000
57,353
1,223,713
94,331
594,841
534,541
0
0
594,841
PROJ.
SECURITY
&
LOGISTICS
995,000
149,250
0
845,750
0
0
0
367,768
49,448
140,332
177,989
17,372
7,922
157,716
OTHERS
66,967,444
17,076,067
3,673,752
283,195
4,641
1,451
13,264,859
196,604,146
36,767,008
20,037,646
93,715,676
3,255,464
850,946
33,190,326
2010
on construction of roads/bridges, other miscellaneous programmes and landing
jetty/erosion/reclamation with least emphasis on educational infrastructure / development and security
& logistics. The allocation rate of resources is illustrated in the pie chart below.
2010 CONTRACT
ROAD & BRIDGE
0.00% 10.23%
HOUSING/TOWN HALLS
ELECTRICFICATION
34.06%
WATER PROJECTS
EDU. INFRAST & DEV.
50.21%
0.19%
0.51%
OTHERS
0.62%
0.28%
1.51%
2.04% 0.35%
56
CUMULATIVE
PERMANENT WORKS
OUTSDING RETENTION
MOBILIZATION
RECOVERED
OUTSTANDING
COMMITMENT
TOTAL IPC PAYMENTS
ADVANCE PAYMENTS
CONTRACT SUM
N'000
N'000
N'000
N'000
N'000
N'000
N'000
10,124,308
1,422,452
632,906
8,068,950
0
6,159
624,170
ROAD & BRIDGE
75,086,855
10,710,583
5,433,857
58,721,611
699,182
312,077
6,302,867
HOUSING/TOWN HALLS
642,009
79,208
57,580
505,220
0
2,886
57,725
ELECTRICFICATION
23,701,284
3,309,464
5,501,207
14,890,613
940,572
69,931
6,444,991
WATER PROJECTS
3,988,123
541,683
318,054
3,092,427
14,116
17,026
340,516
EDU. INFRAST & DEV.
791,754
33,438
436,396
178,683
146,205
502
439,760
3,301,605
19,546
3,171,297
110,762
0
0
3,171,297
534,434
0
534,434
0
0
0
534,434
AGRIC DEV. PROG
4,001,265
599,640
3,665
3,397,960
0
0
3,665
OTHERS
2,016,849
0
2,020,479
(3,630)
0
0
2,020,479
124,188,486
16,716,014
18,109,875
88,962,596
1,800,075
408,582
19,939,903
2011
on construction of roads and bridges, electrification and landing jetty/erosion/reclamation with the
least emphasis on educational infrastructures & development and skill acquisition & youth
development. The allocation rate of resources is depicted in the relevant pie chart below.
2.66%
0.43%
0.64%
2011 CONTRACT
3.22% 1.62%
0.00%
ROAD & BRIDGE
8.15%
3.21%
HOUSING/TOWN HALLS
ELECTRICFICATION
WATER PROJECTS
EDU. INFRAST & DEV.
19.08%
AGRIC DEV. PROG
OTHERS
60.46%
0.52%
57
7
Recommendations and Conclusion
7.1 Key Findings
7.1.1
Absence of Updated Financial Statements
The Commission had not prepared audited accounts for 2009, 2010, 2011 and 2012 as at July 2013. Section
20(1) requires the Commission to prepare and submit to the president audited accounts not later than 30 June in
each year of the activities of the preceding year.
Associated risks are:
 Contravention of law
 Long delay in preparing accounts may significantly reduce their management decision
value
 The audited accounts may not be useful as they might be delayed far beyond their intended
useful period
 May affect the Commission collection of revenue appropriation or might lead to partial
collection.
Recommendation:
 It is recommended that management should ensure prompt completion of audited accounts
of the Commission for outstanding years this will ensure transparency, probity, and
accountability with intent to ensure strict adherence to the enabling law.
NDDC Revenue - Federal Government
Section 14 (2) of NDDC Act 2000states that the Federal Government of Nigeria is to contribute the
equivalent of 15% of the total monthly statutory allocations due to the member states of the
Commission from the Federation Account and 50% of monies due to member states of the
Commission from ecological Funds.
7.1.2
It is noted that contribution is based on appropriation in the annual Federal Government budget which
is significantly less than the amount due if contributions were made in accordance with the Act.
58
 Deliberate contravention of the enabling act by the Federal Government;
 The set objectives of the commission may be stalled
Recommendation:
 It is recommended that the federal government of Nigeria contributes to the commission in
accordance with the existing Act. This will uphold the genuineness of the government
toward developmental goals of the region and respect for the extant law, until the Act is
amended otherwise.
NDDC Revenue - Oil and Gas Companies
The enabling Act is silent on the issue of how the budgets of the oil producing companies are obtained
by the Commission. It neither mandates the oil and gas producing companies to send copies of their
annual budgets to the Commission directly nor directs National Petroleum Investment Management
Services (NAPIMS) and the Department of Petroleum Resources (DPR) to forward their budgets to the
Commission. Also the Act did not clearly define the components of budget for purposes of
determining contribution.
7.1.3
It was also observed that not all oil and gas companies operating within the region actually contribute
while some were not willing to contribute the prescribed 3 percent of their annual budget regularly.
The enabling Actdid not have penalties for non-contribution or insufficient contribution. The
Commission is void of any powers to inspect the companies' book in order to either verify the basis of
respective companies' contribution or enforce compliance.
 The determination of the receipts from the oil companies into the NDDC development
Fund will be based on the whims and caprices of the oil and gas companies'
management disposition.
 Existence of different budgets may be made available for various Government agencies
in order to reduce company's exposure to the NDDC development Fund
 Limited Funds for developmental purposes
 Ineffective collection process by the NDDC
 Existence of loopholes in the enabling act as regard the revenue generating capacity of
the Commission.
Recommendation:
The board should take the necessary steps to get the National Assembly to amend the present NDDC Act 2000
with a view to ensuring that the annual budgets of the oil and gas producing companies are easily obtained by
the Commission as of right, and basis for computation of contribution clearly established.
59
As a short-term measure, management should obtain copies of the annual budgets of the oil and gas producing
companies from the National Petroleum Investment Management Services (NAPIMS) and the Department of
Petroleum Resources (DPR) in order to establish contributions due from these companies to the Commission.
Project Duplication
It was observed that a total number of 22 projects were duplicated in the projects schedule with a total
contract sum of N1.18billion, mobilization payments of N370.70million, interim payment certificates
(IPC) issued to the tune of N156.81 million and mobilization recovered on IPC’s of N93.09 million.
7.1.4




The cumulative work done on the Commission's development projects are overstated;
Misrepresentation and misstatement of the financial statements.
Possible avenue for misappropriation of project Funds
Risk of non-reconciliation of project expenses to the contract sum.
Recommendation:
It is highly recommended that periodic reconciliations be done on project master schedule in the Directorate of
Finance and the Projects Monitoring Unit in order to ensure that the list of projects are correctly recorded by the
different departments.
Table 39: Project Duplication Breakdown
TOTAL
CUMULATIVE
PERMANENT
WORKS
MOBILIZATION
RECOVERED
IPC
TOTAL
PAYMENTS
ADVANCE
PAYMENTS
FINAL
CONTRACT SUM
STATE
S/N
PROJECT
DESCRIPTION
CONTRACTOR
Duplicated projects
N'000
N'000
N'000
N'000
N'000
1
PHARMVILLE LTD
Installation of 2nos.Works for Transformer for
Rumuotnwo in Rumuodamaya and Izo Mabuchi
Ruokwu in Obio Akpor
RIV
9,143
2,286
-
-
-
2
LAKBOLL GLOBAL SERVICES
Developmental for the cultivation Maintenance and
Harvesting 100 Hectares Farm at Ekperikiri
Community in Brass
BAY
57,750
23,100
44,650
23,100
71,138
3
BRIXOFT.COM TECHNOLOGIES
Installations of 1nos works for Transformer for
Bereton college Port Harcourt
RIV
4,572
686
-
-
-
4
TUSALL NIG LTD
Reh of Nwachukwu Mile 11Diobu Port Harcourt
RIV
43,009
10,752
-
-
-
5
FRANEZ NIGERIA LTD
Constr of Elekahia Link/internal road Port Harcourt
RIV
98,284
24,571
-
-
-
6
D&H INT’l Co LTD
Constr of FNSE Annex Abuloma NDDC link in
Port Harcourt
REG
87,426
21,857
-
-
-
7
DEXEEL LTD
Surface Water Scheme for Opokuma OKPARE
BAY
354,819
177,409
81,720
63,990
161,048
8
EBISCO NIGERIA LTD
Solar Powdered Water Project for Polaku Yenagoa
BAY
45,446
11,362
-
-
-
9
INTEGRITY RESOURCES LTD
Solar Powdered Water Project for Ikot Ntuen
AKS
39,754
-
-
-
-
10
JIRAD NIG LTD
Solar powered water project for silas
ABI
39,754
9,938
-
-
-
11
MONCO NIG AGENCY
Solar Powered water project Akpai Mbato
AKS
39,754
9,938
-
-
-
BAY
45,446
11,362
-
-
-
12
BEST SERVICES AGENCY LTD
Solar Water Project for Olugbobori in Southern I
jaw
60
TOTAL
CUMULATIVE
PERMANENT
WORKS
MOBILIZATION
RECOVERED
IPC
TOTAL
PAYMENTS
ADVANCE
PAYMENTS
FINAL
CONTRACT SUM
STATE
S/N
PROJECT
DESCRIPTION
CONTRACTOR
Duplicated projects
N'000
N'000
N'000
N'000
N'000
ABI
6,912
-
6,625
-
6,956
Constr of salem close with spur thro express
RIV
43,749
10,937
-
-
-
RAGAS NIG LTD
Solar Powered water Projects at okohia
ABI
39,754
-
8,631
-
9,520
16
SURE DATA SERV LTD
Solar powered water project for ikot Esenam
AKS
39,754
9,938
-
-
-
17
WELTRACK INTERBIZ COMPANY
Solar water Project Obunagha in Yenegoa
BAY
39,754
9,938
7,130
3,478
11,696
18
WETLANDS DEV TECH LTD
Electr Okpemu Project
EDO
44,561
11,140
-
-
-
19
RURAL PLAN NIG
Constr of NDDC Model 6CRB-Bekwrra
CRS
11,000
2,750
4,806
1,375
6,832
ALGREEN GLOBAL CONCEPTS LTD
Solar water model Mbiabet Ikpe Rice farm
Community Ini
AKS
39,754
9,938
-
-
-
21
JTI ORG NIG LTD
Renovation and Reh of 6 Classroom Block A at uro
Grammar school
DEL
11,430
2,858
3,247
1,143
4,844
22
GACON INT'L NIG LTD
ABI
39,754
9,938
-
-
-
1,181,577
370,699
156,809
93,086
272,033
13
REDLINK RESOURCES
14
WOMO LTD
15
20
installation of 300kva 11/0.415 transformer at
Afuguri
Solar Powered Water Project for Ozata
Non Performing or Stagnated Projects
We observe that substantial work has not been carried out in significant number of projects even
though mobilisation has been paid. For instance based on review from this audit, projects with contract
sum of NGN284.884 billion and mobilisation or advance payments of N63.558 billion that was made
was not certified for work done on the established milestone or progression and therefore no interim
payment certificate (IPC) had been issued. A listing of these projects are detailed in the Appendix
7.1.5
 Lack of proper monitoring and control of projects;
 Most of these developmental projects may have been abandoned by the dishonest
contractors;
 The Commission may not be able to deliver on its set goals to the citizens of the region;
 Waste of scarce resources that have been appropriated to the development objectives of
the region.
Recommendation:
It is recommended that the Commission should carry out a comprehensive review of their projects to
determine their status. Where contracts have been abandoned, contractors should be prosecuted to
enable the commission recover advances to them. Also the terms of advance payment guarantees
(APG) should be invoked and related funds recovered.
61
Management should critically evaluate its contractors to ensure it engages only those that can deliver
based on terms of initial award. Regular follow-up should be made to quickly address issues that arise
on the projects.
Where a contractor deliberately delays a job with intention of obtaining price variation, such contractor
should be made to deliver on the old agreed price or the contract should be cancelled and re-awarded.
7.1.6
Projects with Payments Exceeding Contract Sum
Also, instances where the presumed contract sums were less than the actual payment in the project
listing of the Commission was observed. It indicated existence of upward variation or over payments
in respect of these contracts and the monitoring list was not updated. It is being noted that two of these
contracts relate to remuneration of NTAC Corpers Programme in excess of NGN13.530 million which
is veritable channels for inflations of non existing expenses while one is in respect of road construction
with an excess of NGN79.218 million and the provision of portable water facilities with NGN2.411
million.
 Lack of proper monitoring and management of projects;
 The Commission may not be able to deliver on its set goals to the residents of the
region;
Recommendation
Management should ensure that detailed evaluation of projects is done before award of contract.
Contractors should be held responsible for their bid and acceptance of offer. Where materialsand
labour variations are to be made, the commission should consider subjecting the contract to the whole
process of tender and re-award. The processing of NTAC Corp members’ payment should be well
articulated to avoid paying ghost corps.
62
2
AZZE
RESOURCES
Constr of Ikot Effanga Ikot Omin road old
Odukpani road
Water Supply at Central Police
OUTSDING RETENTION
N'000
N'000
N'000
N'000
N'000
CRS
300,000
75,000
304,218
(79,218)
75,000
18,848
386,139
22/05/2007
2007
RIV
23,027
6,908
18,530
(2,411)
3,454
0
21,905
26/03/2009
2009
0
63,030
(9,900)
0
0
63,030
02/09/2010
2010
14/02/2011
2011
GLOBAL
3
NTAC CORPERS
Monthly allce for 315 Corpers
AKS
53,130
4
NTAC CORPERS
Monthly stipends
ABI
15,150
0
18,780
(3,630)
0
0
18,780
391,307
81,908
404,558
(95,159)
78,454
18,848
489,854
7.1.7
YEARS
AWARD DATE
OUTSTANDING
COMMITMENT
CUMULATIVE
PERMANENT WORKS
N'000
MOBILIZATION
RECOVERED
N'000
CONTRACT SUM
TOTAL IPC PAYMENTS
CONCRETE
ADVANCE PAYMENTS
1
DIAMOND
LTD
STE
S/N
CONTRACTOR
PROJECT /LOCATION
Table 40: Payments Exceeding Contract Sum
Allocation of Fund to State Offices
A further observation is the general allocation of NGN7.442 billion to the nine state offices of the Commission
for the completion of small ticket projects which were neither identifiable nor scheduled for monitoring and
proper management. These payments were distributed in August, 2010. The list in the table below indicates the
specific Fund to each of the nine component states of the Commission and the allocated Fund.
 Mis-appropriation of project Funds
 Non-reconciliation of project expenses to the specific contract sum;
 The Commission may not be able to deliver on its set goals to the residents of the
region;
Recommendation
It is recommended that all project related payments be dully processed and made directly to the contractors/third
parties. There should be proper documentation of the evidence of collection of such funds by the third parties.
63
YEARS
AWARD DATE
ADVANCE
PAYMENTS
CONTRACT
SUM
STATE
PROJECT /
LOCATION
CONTRACTOR
S/N
Table 41: Allocation of Fund to State Offices
N'000
N'000
462,740
17/08/2010
2010
1
ABIA STATE NDDC
Funds for the completion of small ticket projects
ABI
462,740
2
AKWA IBOM NDDC
Funds for completion of small ticket projects
AKS
2,159,548
2,159,548
17/08/2010
2010
349,061
17/08/2010
2010
3
BAYELSA STATE NDDC
BAY
349,061
4
CROSS RIVER STATE NDDC
CRS
219,150
219,150
17/08/2010
2010
1,155,333
18/08/2010
2010
5
DELTA STATE NDDC
DEL
1,155,333
6
EDO STATE NDDC
EDO
627,146
627,146
17/08/2010
2010
804,894
17/08/2010
2010
7
IMO STATE NDDC
IMO
804,894
8
ONDO STATE NDDC
OND
74,599
74,599
17/08/2010
2010
RIV
1,589,950
1,589,950
17/08/2010
2010
7,442,420
7,442,420
9
RIVERS STATE NDDC
64

NDDC - neiti

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