The House of Representatives Committee on Public Accounts has summoned 38 oil companies to explain their failure to remit approximately N9.4 trillion owed to the Federal Government in unpaid royalties, concession rentals, and gas flare penalties.
The move follows a review of the Auditor-General’s Annual Report on the Consolidated Financial Statement for the year ending December 31, 2021.
The Chairman of the Committee, Bamidele Salam, has disclosed that the investigative hearing scheduled to commence this week is aimed at recovering the outstanding payments to the Federation Account and ensuring compliance with the Petroleum Industry Act (PIA).
The Act mandates that such obligations be settled within 30 days to uphold the integrity and accountability of Nigeria’s oil and gas sector.
Salam explained that the companies, which include major industry players such as Shell Nigeria Exploration and Production Company, Chevron Nigeria Limited, Total E&P Nigeria, and Mobil Producing Nigeria Unlimited, must appear before the committee to account for the unpaid sums.
“This is not just about recovering funds but about enforcing compliance and accountability in the oil and gas industry,” he said. “The affected companies must fulfil their statutory obligations to maintain the integrity of the nation’s resources.”
The N9.4 trillion debt, according to the Auditor-General’s report, comprises unpaid royalties, concession rentals, and gas flare penalties, as well as liabilities arising from production sharing contracts, repayment agreements, and modified carry arrangements.
According to the report, failure of these oil firms to settle their obligations violates the PIA and undermines the government’s efforts to enhance revenue generation amid rising fiscal deficits.
The list of the companies summoned includes Addax Petroleum Exploration Nigeria Ltd, AITEO Group, Seplat Energy, Conoil Plc, Oando Oil Limited and Waltersmith Petroman Limited, among others.
The Speaker of the House, Mr. Akin Rotimi Jr., warned that any firm that fails to appear on the scheduled dates risks further action, including potential sanctions.
“The House is committed to ensuring that these funds are recovered in full. Failure to appear before the committee or provide a satisfactory explanation for the outstanding payments will attract severe consequences,” Rotimi stated.
Analysts have described the development as a critical test of the government’s resolve to tackle financial leakages in the oil and gas sector, which remains Nigeria’s primary source of revenue. The sector has been plagued by allegations of corruption, underpayment of royalties, and tax evasion, raising questions about the effectiveness of regulatory oversight.
“This probe is a litmus test for both the National Assembly and the Federal Government. If handled effectively, it could send a strong message that financial malfeasance in the oil sector will no longer be tolerated,” an energy analyst told Investors King.
