Reps Secure 7 Major Oil Firms’ Commitment to Settle $37.4m Debt
The House of Representatives has secured the commitment of seven major oil companies to pay the $37,435,094.52 (approximately ₦58 billion) owed the country before August.
This is contained in a statement issued by the Spokesman of the House of Representatives, Rep. Akin Rotimi Jr., in Abuja on Monday.
Rotimi listed the affected companies as: Belema Oil, Panocean Oil Nigeria Ltd., Newcross Exploration and Production Ltd., Dubri Oil Company Ltd., Chorus Energy, Amni International and Network Exploration.
He said that the feat was achieved through the ongoing investigation by the Public Accounts Committee of the house.
“The commitment 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 pledged repayment forms part of a ₦9 trillion outstanding liability queried by the Auditor-General for the Federation in his 2021 report submitted to the National Assembly,” he said.
The spokesman said that the debts, some of which had accrued over a period of four years, highlighted long-standing revenue leakages in the oil and gas sector.
“Beyond these seven companies, the committee’s investigation has uncovered $1.7 billion (₦2.5 trillion) owed by 45 oil and gas companies in unpaid royalty payments as of December 31, 2024,” he said.
Rotimi also stated that nine companies, with a combined outstanding balance of $429.2 million, had 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,” he said.
The lawmaker said that the committee had directed that the reconciliation process be concluded within two weeks, after which the affected companies must settle their confirmed debts without delay. He, however, said that some companies failed to appear before the committee.
“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,” he said.
Rotimi said that the committee had given the affected companies the grace period of one week to submit all relevant documentation regarding their statutory obligations and appear before it.
He said that failure to comply within the new timeframe might result in firm legislative and regulatory sanctions to enforce accountability and ensure compliance.
The spokesman said that only two companies – Shell Petroleum Development Company (SPDC) and Shell Nigeria Exploration & Production – were found to have fully met their royalty obligations.
He reaffirmed the committee’s commitment to ensuring that all oil and gas companies operating in Nigeria adhered to statutory payment obligations, in line with Petroleum Industry Act (PIA).
He said that the committee would continue to intensify its oversight to recover outstanding revenues and plug revenue leakages in the industry.
“The House of Representatives reiterates that companies benefiting from Nigeria’s natural resources must comply with financial obligations to support national development.
“The necessary legislative measures will be taken to enforce compliance and safeguard public revenue,” he said. #Reps Secure 7 Major Oil Firms’ Commitment to Settle $37.4m Debt#
