Monday, March 10, 2025 - The House of Representatives has announced that seven major oil and gas operators in Nigeria have agreed to remit a total of $37,435,094.52 (approximately N58 billion) to the federation account before August 2025. This commitment follows an ongoing investigation by the Public Accounts Committee of the Green Chamber.
In a statement released by Akin Rotimi, spokesperson of the House of
Representatives, it was noted that the decision came after the committee
scrutinized financial records from the Nigerian Upstream Petroleum Regulatory
Commission (NUPRC), uncovering significant lapses in royalty payments and
reconciliation processes within the sector.
Rotimi stated that the pledged repayment is part of a N9 trillion
outstanding liability queried by the Auditor-General for the Federation in a
2021 report submitted to the National Assembly. He noted that some of the debts
have accumulated over four years, highlighting persistent revenue leakages in
the oil and gas sector.
The companies acknowledged their outstanding debts and pledged to clear
them before August 2025.
In addition to these seven companies, the committee’s investigation
revealed that 45 oil and gas firms owe $1.7 billion (N2.5 trillion) in unpaid
royalties as of December 31, 2024.
“Nine companies, with a combined outstanding balance of $429.2 million,
have contested the figures and requested a reconciliation process with NUPRC to
verify their actual liabilities,” the statement reads.
“These companies include Aradel/Niger Delta, Chevron, STAR DEEP, Shore
Line, Seplat Producing Unlimited, Esso Erha, Esso Usan, Eroton Exploration, and
Seplat Energy.
“The committee has directed that the reconciliation process be completed
within two weeks, after which companies are required to clear their verified
debts without further delay.”
Rotimi added that 28 companies, with a combined debt of
$1,230,708,293.14, have neither responded to public notices nor honored the
committee’s invitations.
“These companies include Addax Petroleum Exploration Nigeria Ltd, AITEO
Groups, All Grace Energy, Amalgamated Oil Company Nigeria Limited, Total
E&P Nigeria (OML 100, 102, 52 & 99), Bilton Energy Limited, Enageed
Resources Limited, Waltersmith Petroman Limited, Conoil Plc, Continental Oil
& Gas Company Ltd, Energia Limited, First E&P Ltd, Frontier Oil
Limited, General Hydrocarbons Limited, Green Energy International Ltd, Nigeria
Agip Exploration Ltd (NAE), Neconde Energy Limited, Nigeria Petroleum Development
Company (NPDC) – OML 60, 61 & 63, Lekoil Oil and Gas Investments Limited,
Midwestern Oil and Gas Limited, Millennium Oil and Gas Company Limited, Oando
Oil Ltd (OML 60, 61 & 62), Heirs Holding, Pillar Oil Limited, Platform
Petroleum Limited, Universal Energy Limited / Sinpec, Sahara Field Production
Limited, and Oriental Energy Resources Limited.”
“The committee has given the affected companies a further grace period
of one week to submit all relevant documentation regarding their statutory
obligations and appear before the committee.”
Rotimi said the panel also warned that failure to comply within the
stipulated timeframe would attract firm legislative and regulatory sanctions to
enforce accountability.
He stated that only two companies, Shell Petroleum Development Company
(SPDC) and Shell Nigeria Exploration and Production, have fully complied with
their royalty payment obligations.
According to the lawmaker, the committee affirmed its commitment to
ensuring that all oil and gas companies operating in Nigeria comply with
statutory payment obligations under the Petroleum Industry Act (PIA). The
committee also pledged to intensify oversight to recover outstanding revenues
and address revenue leakages in the industry.
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