Nigeria’s House of Representatives says seven International Oil and Gas companies have agreed to settle 37.4 million dollars (58billion naira) accrued to the Federation Account following investigation by its committee on Public Accounts, requesting debt payment by companies operating in the country.
A statement by the House Spokesperson, Akin Rotimi Jnr explained that the commitment by these companies follows the committee’s scrutiny of financial records from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which flagged significant lapses in royalty payments and reconciliation processes across the sector.
The statement noted that the pledged repayment by the seven companies forms part of a 9 trillion naira outstanding liability queried by the Auditor General of the Federation in his 2021 report submitted to the National Assembly which revealed debts accrued over a period of four years, highlighting longstanding revenue leakages in the oil and gas sector.
Rotimi Jnr in the statement, explained that beyond these seven companies, the committee’s investigation has uncovered 2.5 trillion naira debt owed by 45 oil and gas companies in unpaid royalty payments as of December 31, 2024 with only Belema Oil,Panocean Oil Nigeria Ltd, Newcross Exploration & Production Ltd, Dubri Oil Company Ltd, Chorus Energy, Amni International, Network Exploration committing to offsetting their royalties.
Nine companies out of the remaining oil and gas entities operating in the country are contesting the outstanding 429 million dollars, requesting reconciliation with the NUPRC towards verifying their actual liabilities.
These companies include: Aradel/Niger Delta, Chevron Nigeria Ltd, STAR DEEP, Shore Line, Seplat Producing Unlimited, Esso Erha, Esso Usan, Eroton Exploration, and Seplat Energy.
The statement said the committee has directed that the reconciliation process be concluded within two weeks, after which companies must settle their confirmed debts without further delay.
The house expressed concern that a total of 28 companies, including AITEO Group, ADDAX Petroleum Exploration Ltd, OANDO Oil Ltd, Total E&P Nigeria, Conoil Nigeria Plc, Nigeria AGIP Exploration Ltd, Heirs Holding, Nigeria Petroleum Development Company, Sahara Field Production Limited, Oriental Energy Resources Limited, among others which are collectively owing over 1.2 trillion naira, failed to honor invitations by the Committee or respond to public notices.
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Rotimi Jnr in the statement further disclosed that the House has given the affected companies one week to submit all relevant documentations regarding their statutory obligations and appear before the committee.
It threatened that failing to appear again will result in firm legislative and regulatory sanctions to enforce accountability and ensure compliance.
The statement commended Shell Petroleum Development Company (SPDC), Shell Nigeria Exploration & Production for complying with the committee’s directive to remit their royalty obligations to the Federation Account.
The Public Accounts Committee says it remains steadfast in ensuring that all oil and gas companies operating in Nigeria adhere to statutory payment obligations in line with the Petroleum Industry Act (PIA).
It also promised to intensify oversight towards recovering outstanding revenues and plug leakages in the industry.
(Editor: Okechukwu Eze)
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