The House of Representatives Public Accounts Committee (PAC) has been at daggers drawn with oil companies owing the Federal Government, PHILIP NYAM reports on the development
The House of Representatives has been engrossed in an intense investigation into activities of oil companies operating in the country, especially as regards their obligations to the Federal Government.
The committee headed by Hon. Bamidele Salam has made sordid revelations, particularly from the reports of the Accountant General of the Federation and Office of the Auditor General of the Federation and it has been a tough battle, compelling the erring companies to meet up their obligations.
Ultimatum over debt
At the beginning of the investigations over a week ago, the Public Accounts Committee was miffed by the non-cooperative attitude of the oil companies and decided to give eight of them a 72-hour ultimatum to appear before it and answer queries relating to their indebtedness to the Federal Government to the tune of $506.5 million.
The committee warned that should they fail to comply, it will have no choice but to take further action, which could include issuing a ruling directing the companies to settle their outstanding liabilities within seven days.
Chairman of the Investigation Sub-Committee of the committee, Hon. Isiaq Akinlade, who disclosed this said the committee’s invitation to the companies was at a time the nation is grappling with a significant budget deficit, having just approved a budget of N54.9 trillion.
The companies include Addax Petroleum Exploration Nigeria Ltd, AITEO Group, All Grace Energy, Amalgamated Oil Company Nigeria Limited, Amni International Petroleum Development Company Limited, Belemaoil Producing Ltd, Bilton Energy Limited, Britannia-U and Waltersmith Petroman Limited.
Besides the eight companies, the following companies were also summoned to appear before the committee the next sitting day, which was Tuesday, March 4.
They are Chevron Nigeria Ltd (OML 90, 95, 49), Chorus Energy, Conoil Plc, Continental Oil & Gas Company Ltd., Dubri Oil Company Limited, Enageed Resources Limited, Shell Nigeria Exploration and Production Company, Energia Limited, Eroton Exploration & Production Company Limited and Dubri Oil Company Limited.
The committee had invited nine companies to appear before it but only one honoured the invitation, a development that compelled the lawmakers to voice out their frustration.
Expressing his displeasure over the failure of the companies to appear before the committee, Akinlade said the refusal of the oil companies to settle their debts, raise concerns about the government’s ability to meet its fiscal targets and adequately fund critical national projects. He said: “How do we fund this budget if these companies continue to refuse to meet their obligations as and when due?
Their actions undermine the fiscal integrity of the federation and delay the progress of national development.” A representative from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Balarabe Haruna, presented the details of the companies’ outstanding debts to the Federation Account, which amounted to a substantial total of $506,565,187.96.
The breakdown is as follows: For Britannia-U OML, the company owes $1,062,417.03 for crude oil by price and $584,227.55 for crude oil by production, bringing the total to $1,646,644.58.
His words: “Waltersmith OML 16 has a total debt of $8,739,281.20, which includes $2,844,273.48 for crude oil by price, $5,277,193.41 for crude oil by production, $372,078.31 for gas flares, and $245,736.00 for concession rentals.
“All Grace Energy OML 17 owes a total of $2,043,083.98, consisting of $812,804.88 for crude oil by price, $533,301.40 for crude oil by production, and $696,977.70 for gas flares.
“Amni International Petroleum has an outstanding debt of $434,948,763.41, with $433,246,518.83 owed for crude oil by production, $1,668,090.00 for gas flares, and $34,154.58 for concession rentals”.
He added: “For Amalgamated Oil OML 156, the company’s debt includes $2,088.91 for concession rentals and $226,423.83 for gas sales, totaling $228,512.74.
“Belemaoil owes a total of $1,703,617.68, made up of $977,793.54 for crude oil by price, $511,870.14 for gas flares, and $213,954.00 for concession rentals.
“AITEO has a debt of $34,861,202.49, consisting of $27,197,780.87 for crude oil by price, $139,308.15 for gas sales, $7,381,653.47 for gas flares, and $142,460.00 for concession rentals. “Addax Exploration OML 126 owes $17,575,991.14, with $17,447,255.24 for gas flares and $128,735.90 for concession rentals.
“Finally, Bilton owes a total of $5,044,514.57, made up of $4,123,850.60 for crude oil by price and $920,663.97 for gas flares.” The total outstanding debts from the aforementioned oil companies amount to $506,565,187.96, underscoring the significant financial burden on the Federation.
Securing commitment
After the back and forth with the affected companies, the chairman of the House of Representatives Committee on Media and Public Affairs, Akin Rotimi, at the weekend announced that seven major operators in Nigeria’s oil and gas industry had undertaken to remit a total of $37,435,094.52 (approximately N58 billion) to the Federation Account before August 2025.
He said this followed the House Public Accounts 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.
According to him, “the pledged repayment forms part of a N9 trillion outstanding liability queried by the Auditor General for the Federation in his 2021 report submitted to the National Assembly. “The debts, some of which have accrued over a period of four years, highlight longstanding revenue leakages in the oil and gas sector.
“Beyond these seven companies, the committee’s investigation has uncovered $1.7 billion (N2.5 trillion) owed by 45 oil and gas companies in unpaid royalty payments as of December 31, 2024” Rotimi said.
“The following seven companies have acknowledged their outstanding debts and agreed to settle them before August 2025: Belema Oil, Panocean Oil Nigeria Ltd, Newcross Exploration & Production Ltd, Dubri Oil Company Ltd, Chorus Energy, Amni International and Network Exploration.
“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.
“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 concluded within two weeks, after which companies must settle their confirmed debts without further delay”.
He further revealed that “A total of 28 companies, collectively owing $1,230,708,293.14, have failed to honour invitations by the committee or respond to public notices.
These companies include: Addax Petroleum Exploration Nigeria Ltd, AITEO Group, 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 and Nigeria Agip Exploration Ltd (NAE).
The rest are ‘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”.
He stated that “only two companies were found to have fully met their royalty obligations: Shell Petroleum Development Company (SPDC) and Shell Nigeria Exploration & Production”.
While many analysts are of the view that the House would have to sustain its efforts towards the recovery of the funds, otherwise, most of the companies will not fulfil their promises., only time will tell whether the companies will pay
