Seven oil and gas processing companies have committed to remitting a total of $37.43 million (approximately ₦58 billion) to the Federation Account by August 2025, following a probe by the House of Representatives into financial irregularities in the sector.
The commitment follows an investigation into financial records submitted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which revealed significant gaps in royalty payments and revenue reconciliation within the oil and gas industry. The probe is part of a broader review into a ₦9 trillion outstanding liability flagged by the Auditor General of the Federation in his 2021 report to the National Assembly.
Unpaid Royalties and Revenue Leakages
The House of Representatives Public Accounts Committee (PAC) uncovered that as of December 31, 2024, at least 45 oil and gas companies owed a combined $1.7 billion (₦2.5 trillion) in unpaid royalties. These long-standing debts, in some cases accumulated over four years, reflect persistent revenue leakages that have weakened government earnings from the petroleum sector.
According to a statement from House spokesman Akin Rotimi, the following seven companies have acknowledged their debts and pledged to settle them before August 2025:
- Belema Oil
- Panocean Oil Nigeria Ltd
- Newcross Exploration and Production Ltd
- Dubri Oil Company Ltd
- Chorus Energy
- Amni International
- Network Exploration
Disputed Figures and Reconciliation Process
In addition to these commitments, nine other oil firms, with a combined outstanding balance of $429.2 million, have disputed the figures presented by NUPRC and requested a reconciliation process to verify their actual liabilities. These companies include:
- Aradel/Niger Delta
- Chevron
- STAR DEEP
- Shore Line
- Seplat Producing Unlimited
- Esso Erha
- Esso Usan
- Eroton Exploration
- Seplat Energy
The committee, led by Bamidele Salam, has directed that the reconciliation process be completed within two weeks, after which the companies must settle their confirmed debts without further delay.
Companies Yet to Respond
Meanwhile, 28 oil firms, collectively owing $1.23 billion, have failed to honor invitations from the committee or respond to public notices regarding their outstanding liabilities. These companies include:
- Addax Petroleum Exploration Nigeria Ltd
- AITEO Group
- All Grace Energy
- Amalgamated Oil Company Nigeria Ltd
- Total E&P Nigeria (OML 100, 102, 52, and 99)
- Bilton Energy Ltd
- Enageed Resources Ltd
- Waltersmith Petroman Ltd
- Conoil Plc
- Continental Oil & Gas Company Ltd
- Energia Ltd
The committee has issued a final grace period of one week for the affected companies to submit all relevant documentation regarding their statutory obligations and appear before it.
Ensuring Compliance and Revenue Recovery
The House of Representatives has emphasized its commitment to plugging revenue leakages in the oil and gas sector and ensuring that all outstanding payments are recovered. Lawmakers have warned that companies failing to comply with directives may face further legal and regulatory action.
The outcome of this probe is expected to set a precedent for accountability and transparency in Nigeria’s oil industry, reinforcing the government’s push to enhance revenue collection from the sector.
