Reps Secure Pledge from Seven Oil Companies to Pay $37.4m into Federation Account by August

By Gloria Ikibah

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Following an extensive probe by the the House of Representatives, Public Accounts Committee of  seven oil and gas firms have committed to paying a total of $37,435,094.52 (₦58 billion) into the Federation Account by August 2025.

This resolution comes after a review of financial records from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which exposed significant lapses in royalty payments and overall financial reconciliation within the sector.

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In a statement bybthe House Spokesperson, Rep. Akin Rotimi, disclosed that the pledged repayments are part of a much larger ₦9 trillion backlog flagged in the 2021 Auditor General’s report submitted to the National Assembly. Some of these debts have accumulated over four years, further exposing gaps in Nigeria’s revenue collection process within the oil and gas industry.

Rotimi said  that beyond the seven companies that have agreed to settle their debts, investigations have uncovered $1.7 billion (₦2.5 trillion) in unpaid royalties owed by 45 oil firms as of December 31, 2024.

1. Companies That Have Agreed to Pay by August 2025

The following companies have acknowledged their outstanding debts and have pledged to clear them before the deadline:

1. Belema Oil

2. Panocean Oil Nigeria Ltd*

3. Newcross Exploration & Production Ltd.

4. Dubri Oil Company Ltd

5. Chorus Energy

6. Amni International

7. Network Exploration

2. Companies Disputing Their Recorded Liabilities

Nine companies, with a total outstanding debt of $429.2 million, have challenged the figures attributed to them. They have requested a reconciliation process with NUPRC to verify the accuracy of their obligations. These companies are:

1. Aradel/Niger Delta

2. Chevron

3. STAR DEEP

4. Shore Line

5. Seplat Producing Unlimited

6. Esso Erha

7. Esso Usan

8. Eroton Exploration

9. Seplat Energy

The Public Accounts Committee has directed that the reconciliation process be concluded  within two weeks. After this period, all verified debts must be paid immediately without further delays.

3. Companies That Have Ignored the Committee’s Summons

A total of 28 companies, collectively owing $1.23 billion, have refused to appear before the Committee or respond to public notices. The defaulters include:

1. Addax Petroleum Exploration Nigeria Ltd

2. AITEO Group

3. All Grace Energy

4. Amalgamated Oil Company Nigeria Limited

5. Total E&P Nigeria (OML 100, 102, 52 & 99)

6. Bilton Energy Limited

7. Enageed Resources Limited

8. Waltersmith Petroman Limited

9. Conoil Plc

10. Continental Oil & Gas Company Ltd

11. Energia Limited

12. First E&P Ltd

13. Frontier Oil Limited

14. General Hydrocarbons Limited

15. Green Energy International Ltd

16. Nigeria Agip Exploration Ltd (NAE)

17. Neconde Energy Limited

18. Nigeria Petroleum Development Company (NPDC) – OML 60, 61 & 63

19. Lekoil Oil and Gas Investments Limited

20. Midwestern Oil and Gas Limited

21. Millennium Oil and Gas Company Limited

22. Oando Oil Ltd (OML 60, 61 & 62)

23. Heirs Holding

24. Pillar Oil Limited

25. Platform Petroleum Limited

26. Universal Energy Limited / Sinpec

27. Sahara Field Production Limited

28. Oriental Energy Resources Limited

These firms have been given a one-week grace period to submit the necessary financial documents and appear before the Committee. Failure to comply will attract strict legislative and regulatory actions to enforce compliance.

4. Companies That Have Fully Paid Their Royalty Obligations

Only two companies were confirmed to have no outstanding royalty debts:

1. Shell Petroleum Development Company (SPDC)

2. Shell Nigeria Exploration & Production

Next Steps: Enforcing Compliance & Revenue Recovery

The House Committee on Public Accounts has reaffirmed it commitment to enforcing compliance with statutory financial obligations under the Petroleum Industry Act (PIA). Lawmakers have vowed to intensify oversight efforts to recover outstanding revenues and curb future financial leakages in Nigeria’s oil and gas sector.

The House of Representatives insists that all firms operating in Nigeria’s energy sector must meet their financial responsibilities in order to support the nation’s economic stability. The Committee has also assured Nigerians that appropriate legislative actions will be taken to hold all defaulters accountable.

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