The House of Representatives has concluded plans to commence investigation into the N9.4 trillion debts allegedly owed the Federal Government by 48 oil companies operating in the country.
The 5-day investigative hearing scheduled to commence on Monday, 3rd March to Friday, 7th March, 2025 was organised by House Committee on Public Accounts chaired by Rep. Bamidele Salam (PDP-Osun).
The investigative hearing was in response to the 2021 audit queries issued by the office of Auditor General of the Federation (oAuGF).
As captured by the audit queries, the affected companies are: Addax Petroleum Exploration Nigeria Ltd, AITEO Group, All Grace Energy, Amalgamated Oil Company Nigeria Limited, Amni International Petroleum Development Company Limited, Belemaoil Producing Ltd, Bilton Energy Limited, Britannia-U, Waltersmith Petroman Limited, Chevron Nig Ltd (OML 90, 95, 49), Chorus Energy, Conoil Plc, Continental Oil & Gas Company Ltd, Dubri Oil Company Limited, Enageed Resources Limited, Shell Nigeria Exploration and Production Company, Ener: ia Limited Eroton Exploration & Production Company Limited, Dubri Oil Company Limited, Esso E & P. Ltd (Usan, Erha), First E & P. Ltd, and Frontier Oil Limited.
Others are: General Hydrocarbons Limited, Green Ener: International Ltd, Nigeria Asie Ex+l. Ltd, NAE, Panocean Oil Nigeria Limited (OML 147), Neconde Ener: Limited, Newcross Exploration and Production Limited, Newcross Petroleum (OML 152), Network Exploration & Production Limited, Total E and P Nigeria (OML 100 102, 52 & 99), Niger Delta Petroleum, Nigeria Pet. Dev.Co. NPDC (OML 60, 61 & 63), Lekoil Oil and Gas Investments Limited, Midwestern Oil and Gas Limited, Millennium Oil and Gas Company Limited, Seplat Energy (OML 4, 38 & 41), Oriental Ener: Resources Limited, Oando Oil Ltd (OML 60, 61 & 62), Heirs Holding, Pillar Oil Limited, Platform Petroleum Limited, Shell Petroleum Development Company (OML 27), Universal Energy Limited, Shoreline Natural Resources, Star Deep Water Petroleum Limited, Sahara Field Production Limited, and Mobil Producing Nig Unlimited (OML 67 & 70).
As stipulated in the letters sent to all the affected oil companies, the investigative hearing is in line with the Committee’s “Constitutional mandate as enshrined in Sections 85, 88 and 89 of the Constitution of the Federal Republic of Nigeria 1999 (as amended) and Order XX – Rule 6 of the House of Representatives Standing Orders (eleventh edition).”
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Accordingly, the Committee is “saddled with the responsibility of investigating loss of public revenues, non-remittance of fees and non-adherence to financial laws and legislations in the administration of public funds, as well as consideration of the Annual Report of the Auditor-General for the Federation.”
During the consideration of the Auditor-General’s Annual Report on the Consolidated Financial Statement for the year ended 31st December, 2021 and further in-depth investigations carried out by the Committee, it was revealed that, as at the last quarter of 2024, several oil companies were indebted to the Federation Account, to the tune of N9.4tn in royalties, concession rentals and gas flare penalty. This also includes Production Sharing Contract, Repayment Agreement, and Modified Carry Arrangement.
“Furthermore, the Petroleum Industry Act (PIA) stipulates that oil companies are to settle their obligations within 30 days, yet it was discovered by the Auditor-General for the Federation that some of the debts owed by these companies have been due since 2021.
“Subsequently, the Public Accounts Committee by this notice hereby invites all Oil Companies listed below to provide documents earlier requested in our letter, and cause appearance before the Public Accounts Committee.”
Source: Tribune