Heavy court compensation payments driving IOCs away from Nigeria, says NDDC boss

The Managing Director of the Niger Delta Development Commission, Dr Samuel Ogbuku, has explained that International Oil Companies are divesting from onshore operations in Nigeria not only because of pipeline vandalism but also due to huge compensation payouts ordered by courts.

Speaking at a law and development summit in Port Harcourt on Wednesday, Ogbuku noted that the IOCs believe they are operating at a loss, as they face heavy taxes alongside substantial sums paid to communities that take them to court.

He stated that the companies often feel that court judgments force them to pay heavily in compensation, making onshore business increasingly unsustainable.

Ogbuku added that while the divestment is hurting the region, with local firms like Oando acquiring assets from Agip and subsequently laying off workers due to limited capacity, there is a need to balance national interest with individual interests.

He stressed that law, development, and security are intertwined, and that the NDDC views legal discourse as critical to its interventionist role, as without law there can be no discipline, and without discipline, no development.