Reps Panel Probes Oil Firms Over N432bn Regulatory Debt

 

Reps Panel Probes Oil Firms Over N432bn Regulatory Debt

The House of Representatives Public Accounts Committee (PAC) has commenced an investigation into outstanding regulatory debts owed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Listed as the debtors are the Nigerian National Petroleum Company Limited (NNPCL) and other oil companies, with liabilities under review put at N432.07 billion.

The probe followed findings contained in the Auditor-General’s annual audit reports on unpaid petroleum-related obligations accruing to the regulatory agency.

The Auditor-General’s 2023 Annual Audit Report had put the combined indebtedness of NNPCL and oil companies at N392.73bn.

The NNPCL accounted for N162.46bn of the debt, while companies operating under the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Major Marketers Association of Nigeria (MOMAN) and Major Energy Marketers Association of Nigeria (MEMAN) owed N230.27bn.

The liabilities were attributed to Balancing Allowance, National Transport Average, the one per cent Midstream and Downstream Gas Infrastructure Fund, as well as legacy obligations arising from importation, coastal and credit transactions.

 

The Auditor-General’s report subsequently put outstanding indebtedness at N432.07bn, excluding liabilities attributed to NNPCL.

Further submissions by the NMDPRA showed that 146 oil companies operating under DAPPMAN, MEMAN and MOMAN owed the authority N327.53bn as of 2025.

The committee said some of the outstanding obligations dated back to 2017, raising concerns about the effectiveness of mechanisms deployed by the regulatory authority to assess, collect and recover government revenue.

In a statement on Wednesday, the Reps committee’s Chairman, Bamidele Salam, said the investigation was designed to establish the facts surrounding the liabilities and ensure that all revenue due to government was properly accounted for and recovered.

Salam warned companies and institutions summoned by the committee against failing to appear with appropriate representatives and relevant records.

 

“Any company invited by this committee must respect the people’s parliament of the Federal Republic of Nigeria by honouring the summons with appropriate representation and all relevant documents,” he said.

He added: “We are not here to witch-hunt anybody; our responsibility is to establish the facts, protect public revenue and ensure that every naira due to the government is properly accounted for.”

The committee is expected to scrutinise the basis for the debt assessments, periods covered, payments made by affected companies, outstanding balances and measures taken by the NMDPRA to recover the funds.

It will also seek explanations on “why liabilities accumulated over a number of years remained outstanding and whether enforcement measures were deployed against defaulting companies.”

The Salam-led Public Accounts Committee has been able to recover billions of Naira in unremitted funds and public revenues owed to the Federal Government through legislative oversight.

Among the major recoveries made by the committee in the recent past, was the N521.76m in unremitted Value Added Tax (VAT) representing tax on fees earned from Remita transactions between November 2018 and April 2024.

 

The committee also previously recovered from international and local oil companies over N61.5bn in unremitted royalties, concession rentals, and gas flare penalties.

The Reps panel had recently summoned the 11 Electricity Distribution Companies (DisCos) over an estimated N2.6 trillion in unpaid remittances meant for the Nigerian Bulk Electricity Trading Company (NBET).

The committee had also directed the Account General of the Federation to supply comprehensive financial records regarding trillions of Naira in outstanding operating surpluses allegedly withheld by the CBN, NNPCL, and other major revenue-generating agencies of the Federal Government.

Salam said the inquiry was part of the National Assembly’s constitutional oversight responsibility and was not targeted at any particular company or institution.

He said the committee would require the affected entities and the NMDPRA to provide the documentation necessary to establish how the debts arose, the amounts recovered and the balances still outstanding.

The committee said it would deploy its oversight powers to ensure that public revenue was fully accounted for and that relevant agencies took effective steps to recover outstanding liabilities.

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