The Managing Director of the Niger Delta Development Commission (NDDC), Samuel Ogbuku, says rising compensation payments and legal costs are among the reasons international oil companies are leaving Nigeria’s onshore oil sector.

Speaking at the NDDC Law and Development Summit in Port Harcourt, Ogbuku said pipeline vandalism is not the only factor behind the divestment of multinational oil firms. He explained that many companies believe they are spending heavily on taxes and court-ordered compensation, making operations less profitable.

According to him, the departure of the oil firms is affecting the region, as some workers have lost their jobs following the transfer of assets to local operators. He noted that indigenous companies often lack the financial capacity to retain all employees inherited from multinational firms.

Ogbuku called for a balance between protecting community interests and ensuring a business environment that supports investment, employment, and economic growth in the Niger Delta. He added that law, security, and development must work together to achieve lasting progress in the region.