The House of Representatives Public Accounts Committee has launched an investigation into the outstanding debts owed to the Federation Account by the Nigerian National Petroleum Company Limited (NNPCL) and other oil companies.
During a hearing chaired by Akinlade Isiaq, the committee examined queries raised by the Office of the Auditor-General for the Federation, which alleged that NNPCL and oil firms owed $1.6 billion in unpaid royalties as of the end of 2021. These debts stem from Production Sharing Contracts, Repayment Agreements, and Modified Carry Arrangements under the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
In response, NNPCL’s Chief Financial Officer, Dapo Segun, stated that part of the disputed funds had been utilized for government projects and subsidies. He assured the committee that once ongoing reconciliations are completed, relevant reports will be submitted to the appropriate agencies.
The committee has committed to continuing its investigation through 2025 to verify the current status of the debts as of December 2024 and ensure full recovery of outstanding funds. Chairman Isiaq emphasized the importance of transparency in the process, stating,
“This hearing is a crucial step in ensuring that Nigeria’s oil and gas revenues are properly accounted for. We are determined to recover these debts in the best interest of the Federation and its citizens.”
Key financial institutions, including the Accountant-General of the Federation, Central Bank of Nigeria, and the Ministry of Finance, alongside regulatory bodies like the Nigeria Extractive Industries Transparency Initiative (NEITI) and the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), have been invited to clarify financial discrepancies.
