JUST IN: Reps secures commitment of 7 Oil Companies to settle $37.4m owed Federation account before August

Consequent upon the ongoing investigation by the Public Accounts Committee of the House of Representatives, seven major operators in Nigeria’s oil and gas industry have undertaken to remit a total of $37,435,094.52 (approximately ₦58 billion) to the Federation Account before August 2025.

This 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.

Background on the Debt

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. 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 (₦2.5 trillion) owed by 45 oil and gas companies in unpaid royalty payments as of December 31, 2024.

Key Findings from the Investigation

*1. Companies That Have Committed to Payment*

The following seven companiesw have acknowledged their outstanding debts and agreed to settle them before August 2025:

1. Belema Oil
2. Panocean Oil Nigeria Ltd
3. Newcross Exploration & Production Ltd
4. Dubri Oil Company Ltd
5. Chorus Energy
6. Amni International
7. Network Exploration

Companies That Disputed Their Recorded Liabilities

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:

1. Aradel/Niger Delta
2. Chevron
3. STAR DEEP
4. Shore Line
5. Seplat Producing Unlimited
6. Esso Erha
7. Esso Usan
8. Eroton Exploration
9. 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.

Companies That Have Failed to Appear Before the Committee*

A total of 28 companies, collectively owing $1,230,708,293.14, have failed to honor invitations by the Committee or respond to public notices. These companies include:

1. Addax Petroleum Exploration Nigeria Ltd
2. AITEO Groupw
3. All Grace Energy
4. Amalgamated Oil Company Nigeria Limited
5. Total E&P Nigeria (OML 100, 102, 52 & 99)
6. Bilton Energy Limited
7. Enageed Resources Limited
8. Waltersmith Petroman Limited
9. Conoil Plc
10. Continental Oil & Gas Company Ltd
11. Energia Limited
12. First E&P Ltd
13. Frontier Oil Limited
14. General Hydrocarbons Limited
15. Green Energy International Ltd
16. Nigeria Agip Exploration Ltd (NAE)
17. Neconde Energy Limited
18. Nigeria Petroleum Development Company (NPDC) – OML 60, 61 & 63
19. Lekoil Oil and Gas Investments Limited
20. Midwestern Oil and Gas Limited
21. Millennium Oil and Gas Company Limited
22. Oando Oil Ltd (OML 60, 61 & 62)
23. Heirs Holding
24. Pillar Oil Limited
25. Platform Petroleum Limited
26. Universal Energy Limited / Sinpec
27. Sahara Field Production Limited
28. 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. Failure to comply within this timeframe will result in firm legislative and regulatory sanctions to enforce accountability and ensure compliance.

Companies That Have Fully Complied

Only two companies were found to have fully met their royalty obligations:

1. Shell Petroleum Development Company (SPDC)
2. Shell Nigeria Exploration & Production

Ensuring Accountability and Revenue Recovery

The House Committee on Public Accounts 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). The Committee will continue to intensify 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.

Signed:

Rep. Akin Rotimi, Jr.*
Spokesman, House of Representatives