The House of Representatives has commenced an investigative hearing into the outstanding debts owed by oil companies to the Federation Account, totaling approximately ₦9.4 trillion. According to a statement by House Spokesman Akintunde Rotimi, the probe is in line with the Committee’s constitutional mandate.
The investigation was triggered by a review of the Auditor-General’s Annual Report on the Consolidated Financial Statement for the year ending December 31, 2021. Further investigations revealed that as of the last quarter of 2024, several oil companies had yet to remit ₦9.4 trillion.
The outstanding sum includes unpaid royalties, concession rentals, gas flare penalties, and obligations from production-sharing contracts, repayment agreements, and modified carry arrangements. Despite the clear provisions of the Petroleum Industry Act, which require such debts to be settled within 30 days, many of these liabilities have remained unsettled since 2021.
Chairman of the House Committee on Public Accounts, Bamidele Salam, emphasized that oil companies must fulfill their statutory obligations to maintain the integrity and accountability of the nation’s resources. He welcomed a collaborative approach with all stakeholders to address these discrepancies.
The House Committee on Public Accounts has invited several oil companies to appear before it, including Addax Petroleum Exploration Nigeria Ltd, AITEO Group, Chevron Nig Ltd, and Shell Nigeria Exploration and Production Company. The companies are required to submit the previously requested documents and appear before the Committee.
The investigative hearing is scheduled to be held on Monday, March 3, 2025, at 10:00 am prompt. The Committee cautioned that failure to appear on the designated date may result in further action being taken against the defaulting organization.
The House of Representatives is committed to ensuring that oil companies operating in Nigeria fulfill their statutory obligations. The investigation into the outstanding debts is a significant step towards promoting transparency and accountability in the oil and gas sector.
