Reps secure commitment of seven oil companies to settle $37.4 million debt

The House of Representatives has obtained a commitment from seven major oil companies to settle their outstanding debts totalling $37,435,094.52 (approximately N58 billion) to the Federation Account before August 2025.

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The spokesperson of the House of Representatives, Akin Rotimi, in a statement on Sunday, said this commitment follows the 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.

It explained that 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 long-standing revenue leakages in the oil and gas sector,” the statement said.

Beyond these seven companies, it said 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 31 December 2024.

It listed the seven companies that agreed to settle their debts before August 2025, including Belema Oil, Pan Ocean Oil Nigeria Ltd, Newcross Exploration & Production Ltd, Dubri Oil Company Ltd, Chorus Energy, Amni International and Network Exploration.

In addition to these companies, 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.

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These companies, according to the statement, include: Aradel/Niger Delta, Chevron, Star Deep, Shore Line, Seplat Producing Unlimited, Esso Erha, Esso Usan, Eroton Exploration and Seplat Energy.

The statement said the committee has directed that the reconciliation process be concluded within two weeks, after which companies must settle their confirmed debts without further delay.

Furthermore, the statement said 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, it said, 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, Nigeria Agip Exploration Ltd (NAE), 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.

The statement said 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,” it said.

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Only two companies, Shell Petroleum Development Company (SPDC) and Shell Nigeria Exploration & Production, have fully met their royalty obligations.

The statement noted that 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 statement reiterates that companies benefiting from Nigeria’s natural resources must comply with financial obligations to support national development.

It said the necessary legislative measures will be taken to enforce compliance and safeguard public revenue.