Reps say 48 oil firms owing FG N2trn, seven companies to remit N58bn

The house of representatives says seven major oil and gas operators in Nigeria have agreed to remit a total of $37,435,094.52 (approximately N58 billion) to the federation account before August 2025, following an ongoing investigation by the public accounts committee of the green chamber.

In a statement on Sunday, Akin Rotimi, spokesperson of the house of representatives, said the commitment comes after the committee scrutinised financial records from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), uncovering significant lapses in royalty payments and reconciliation processes within the sector.

Rotimi said the pledged repayment is part of a N9 trillion outstanding liability queried by the auditor-general for the federation in a 2021 report submitted to the national assembly.

According to the lawmaker, some of the debts have accumulated over four years, underscoring persistent revenue leakages in the oil and gas sector.

He said the companies that acknowledged their outstanding debts and pledged to clear them before August 2025 are Belema Oil, Panocean Oil Nigeria Ltd, and Newcross Exploration & Production Ltd.

Others include Dubri Oil Company Ltd, Chorus Energy, Amni International, and Network Exploration.

’45 OIL FIRMS OWE N2.5 TRILLION IN UNPAID ROYALTIES’

In addition to the seven companies that have committed to payment, Rotimi said the committee’s investigation revealed that 45 oil and gas firms owe $1.7 billion (N2.5 trillion) in unpaid royalties as of December 31, 2024.

“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,” the statement reads.

“These companies include Aradel/Niger Delta, Chevron, STAR DEEP, Shore Line, Seplat Producing Unlimited, Esso Erha, Esso Usan, Eroton Exploration, and Seplat Energy.

“The committee has directed that the reconciliation process be completed within two weeks, after which companies are required to clear their verified debts without further delay.”

‘28 COMPANIES FAILED TO HONOUR COMMITTEE’S INVITATIONS’

Rotimi added that 28 companies, with a combined debt of $1,230,708,293.14, have neither responded to public notices nor honoured the committee’s invitations.

“These companies include Addax Petroleum Exploration Nigeria Ltd, AITEO Groups, 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,” the statement further reads.

“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 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.”

Rotimi said the panel also warned that failure to comply within the stipulated timeframe would attract firm legislative and regulatory sanctions to enforce accountability.

He said only two companies, Shell Petroleum Development Company (SPDC) and Shell Nigeria Exploration and Production, have fully complied with their royalty payment obligations.

According to the lawmaker, the committee affirmed its commitment to ensuring that all oil and gas companies operating in Nigeria comply with statutory payment obligations under the Petroleum Industry Act (PIA).

The committee also pledged to intensify oversight to recover outstanding revenues and address revenue leakages in the industry.