The House of Representatives has successfully secured a commitment from seven oil companies to settle a total of $37.4 million owed to the Federation Account by August 2025. This pledge comes amid an ongoing investigation by the Public Accounts Committee (PAC) of the House of Representatives, which is scrutinizing the financial records of the Nigerian oil sector.
According to a statement issued on Sunday by the House spokesman, Akin Rotimi, this commitment follows an audit by the Public Accounts Committee, which reviewed the financial records from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The audit flagged significant lapses in royalty payments and the reconciliation processes across the sector.
This $37.4 million repayment is part of a larger outstanding liability of ₦9 trillion, identified in the Auditor General’s 2021 report to the National Assembly. The debts, which have accumulated over the past four years, underscore the ongoing revenue leakages within Nigeria’s oil and gas sector.
In addition to the seven companies that have pledged to settle their debts, the investigation has revealed a staggering $1.7 billion (₦2.5 trillion) owed by 45 oil and gas companies in unpaid royalty payments as of December 31, 2024.
The seven companies that have acknowledged their debts and committed to settling them before the August 2025 deadline include:
- Belema Oil
- Panocean Oil Nigeria Ltd
- Newcross Exploration & Production Ltd
- Dubri Oil Company Ltd
- Chorus Energy
- Amni International
- Network Exploration
Meanwhile, nine other companies, with a combined debt of $429.2 million, have contested the figures and requested a reconciliation process with NUPRC to verify their actual liabilities. These companies are:
- Aradel/Niger Delta
- Chevron
- STAR DEEP
- Shore Line
- Seplat Producing Unlimited
- Esso Erha
- Esso Usan
- Eroton Exploration
- Seplat Energy
The Public Accounts Committee has instructed that the reconciliation process be completed within two weeks. Once the reconciliation is concluded, these companies will be expected to settle their confirmed debts promptly.
Additionally, the committee revealed that 28 companies, collectively owing $1.23 billion, have failed to respond to invitations or public notices issued by the committee. These companies include major players like:
- Addax Petroleum Exploration Nigeria Ltd
- AITEO Group
- Total E&P Nigeria (OML 100, 102, 52 & 99)
- Conoil Plc
- Nigeria Agip Exploration Ltd (NAE)
- Oando Oil Ltd (OML 60, 61 & 62)
- Others
The House Committee has granted these companies a one-week grace period to submit all relevant documentation and appear before the committee. Failure to comply within this period will result in legislative and regulatory sanctions to ensure accountability and enforce compliance.
Finally, Rotimi noted that only two companies were found to have fully met their royalty obligations:
- Shell Petroleum Development Company (SPDC)
- Shell Nigeria Exploration & Production
This development highlights the urgent need for improved financial oversight and accountability within Nigeria’s oil and gas sector to ensure that the country’s resources are properly managed and that the Federation Account receives its rightful share of revenues.
