By Gloria Ikibah
The House of Representatives Committee on Public Accounts has initiated a probe into unremitted funds owed to the Federation Account by the Nigerian National Petroleum Company Limited (NNPCL) and several oil firms.
The investigation, led by Sub-Committee Chairman, Rep. Akinlade Isiaq, arose from concerns highlighted in the Auditor General’s 2020–2021 reports regarding unsettled financial obligations by NNPC Ltd and other industry players.
Findings from the audit indicate that, as of December 2021, NNPC Ltd and oil companies owed the Federation roughly $1.6 billion in royalties due to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) under various agreements, including the Production Sharing Contract, Repayment Agreement, and Modified Carry Arrangement. Additionally, NNPCL’s outstanding claims against the Federation were estimated at N1.9 trillion.
Responding to these queries, NNPC’s Group Chief Executive Officer, represented by Chief Financial Officer, Dapo Segun, stated that part of the funds had been directed toward government-designated Priority Projects (GPP) and fuel subsidy payments, which remained in effect until its removal in September 2024.
He explained that deductions were sourced from the Federation’s crude oil and gas entitlements, including royalties, and were allocated to projects based on the approved national budget. However, he clarified that no deductions were made for GPP in 2023 and 2024, as implementation was dependent on the passage of the Petroleum Industry Act (PIA).
Rep. Isiaq reaffirmed the committee’s dedication to professionalism and transparency, emphasizing the importance of accountability in managing Nigeria’s oil and gas resources.
“This hearing is a vital step in ensuring that our national resources are properly accounted for. We are committed to taking all necessary measures to recover these outstanding debts in the best interest of the Federation and its citizens,” he stated.
The committee has also summoned oil companies identified in the NUPRC report, which shows they owe the Federal Government a total of $929 million as of September 30, 2024.
To address financial discrepancies, key government agencies have been invited to provide clarity on the issue. These include the Accountant General of the Federation, the Central Bank of Nigeria (CBN), the Nigeria Extractive Industries Transparency Initiative (NEITI), the Ministry of Finance, the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), the Bureau of Public Procurement (BPP), and the Federal Inland Revenue Service (FIRS).
Their input is expected to shed light on the legal and procedural factors behind the non-payment of these funds. This investigation aims to establish stronger accountability and financial transparency within Nigeria’s oil and gas sector.