The House of Representatives has disclosed that seven major operators in Nigeria’s oil and gas industry have undertaken to remit a total of $37,435,094.52 (approximately N58 billion) to the Federation Account before August 2025, acknowledging their outstanding debt.
This was revealed in a statement signed by Rep. Akin Rotimi Jr., Spokesman, House of Representatives, on Sunday, as part of the ongoing investigation into the oil and gas sector by the Public Accounts Committee of the House of Representatives.
Nairametrics previously reported that the House of Representatives had summoned 48 oil companies operating in Nigeria to appear before its Committee on Public Accounts for a series of investigative hearings into a combined debt of N9.4 trillion.
In a press release issued by the Office of the House Spokesperson last Monday, it was disclosed that several oil companies allegedly owe the federation approximately N9.4 trillion.
Companies summoned include major industry players such as Shell Nigeria Exploration and Production Company, Chevron Nigeria Ltd, Total E&P Nigeria, Seplat Energy, Oando Oil Ltd, and Mobil Producing Nigeria Unlimited, among others.
The committee’s probe follows findings in the Auditor-General’s Annual Report on the Consolidated Financial Statement for the year ending December 31, 2021.
The debt, which accumulated as of the last quarter of 2024, comprises unpaid royalties, concession rentals, gas flare penalties, and obligations from Production Sharing Contracts, Repayment Agreements, and Modified Carry Arrangements.
Key Findings by the House of Representatives
- According to the statement, Belema Oil, Pan Ocean Oil Nigeria Ltd, Newcross Exploration & Production Ltd, Dubri Oil Company Ltd, Chorus Energy, Amni International, and Network Exploration have acknowledged their outstanding debts ( $37,435,094.52) and agreed to settle them before August 2025.
- The committee stated that this commitment follows its scrutiny of financial records from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which flagged significant lapses in royalty payments and reconciliation processes across the sector.
- The committee added that beyond these seven companies, its investigation has uncovered $1.7 billion (N2.5 trillion) owed by 45 oil and gas companies in unpaid royalty payments as of December 31, 2024.
Other Key Findings
Companies That Disputed Their Recorded Liabilities
- According to the statement, nine companies, with a combined outstanding balance of $429.2 million, have contested the figures and requested a reconciliation process with NUPRC to verify their actual liabilities.
These companies include:
- Aradel/Niger Delta
- Chevron
- STAR DEEP
- Shoreline
- Seplat Producing Unlimited
- Esso Erha
- Esso Usan
- Eroton Exploration
- Seplat Energy
- The committee disclosed that it “has directed that the reconciliation process be concluded within two weeks, after which companies must settle their confirmed debts without further delay.”
- Furthermore, the committee frowned at about 28 companies for failing to appear before it within the stipulated period.
“A total of 28 companies, collectively owing $1,230,708,293.14, have failed to honor invitations by the committee or respond to public notices,” it added.
These companies include:
- Addax Petroleum Exploration Nigeria Ltd
- AITEO Group
- All Grace Energy
- Amalgamated Oil Company Nigeria Limited
- Total E&P Nigeria (OML 100, 102, 52 & 99)
- Bilton Energy Limited
- Enageed Resources Limited
- Waltersmith Petroman Limited
- Conoil Plc
- Continental Oil & Gas Company Ltd
- Energia Limited
- First E&P Ltd
- Frontier Oil Limited
- General Hydrocarbons Limited
- Green Energy International Ltd
- Nigeria Agip Exploration Ltd (NAE)
- Neconde Energy Limited
- Nigeria Petroleum Development Company (NPDC) – OML 60, 61 & 63
- Lekoil Oil and Gas Investments Limited
- Midwestern Oil and Gas Limited
- Millennium Oil and Gas Company Limited
- Oando Oil Ltd (OML 60, 61 & 62)
- Heirs Holdings
- Pillar Oil Limited
- Platform Petroleum Limited
- Universal Energy Limited / Sinpec
- Sahara Field Production Limited
- Oriental Energy Resources Limited
- The committee granted the affected companies a further grace period of one week to submit all relevant documentation regarding their statutory obligations and appear before the committee.
- The House stressed that failure to comply within the timeframe will result in firm legislative and regulatory sanctions to enforce accountability and ensure compliance.
More Insights
The committee further revealed that only two companies were found to have fully met their royalty obligations:
- Shell Petroleum Development Company (SPDC)
- Shell Nigeria Exploration & Production
The House Committee on Public Accounts vowed to remain steadfast in ensuring that all oil and gas companies operating in Nigeria adhere to statutory payment obligations in line with the Petroleum Industry Act (PIA).
“The committee will continue to intensify oversight to recover outstanding revenues and plug revenue leakages in the industry,” the statement partly reads.
The House of Representatives reiterated that companies benefiting from Nigeria’s natural resources must comply with statutory financial obligations to support national development.
