Oil Companies Commit to Repay FG Debt Amidst Legislative Probe

In a significant development, the House of Representatives has revealed that seven prominent oil and gas companies operating in Nigeria have pledged to remit $37.4 million (approximately N58 billion) to the Federation Account by August 2025, acknowledging their outstanding obligations.

This announcement came as part of an ongoing investigation by the Public Accounts Committee into financial discrepancies in the oil and gas sector.

The debts were identified during a review of records from the Nigerian Upstream Petroleum Regulatory Commission, exposing lapses in royalty payments, concession rentals, gas flare penalties, and other financial obligations related to production-sharing and repayment agreements. Among the companies that admitted to owing and committed to settling their debts are Belema Oil, Pan Ocean Oil Nigeria Ltd, Newcross Exploration & Production Ltd, and Amni International.

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Further findings disclosed that 45 additional companies collectively owe $1.7 billion in unpaid royalties as of the end of 2024. Despite this, some companies disputed the claims, with nine entities contesting liabilities amounting to $429.2 million. These companies have requested a reconciliation process with the regulatory authority to verify the actual amounts owed, which the committee has directed must be concluded swiftly to ensure compliance.

Adding to the complexity, 28 companies, collectively owing over $1.23 billion, have failed to appear before the committee or respond to public notices. This non-compliance has prompted the committee to warn of strict legislative and regulatory measures if these firms do not address their obligations within a stipulated grace period.

Despite these challenges, the committee noted that two companies, Shell Petroleum Development Company and Shell Nigeria Exploration & Production, have fully adhered to their royalty payment responsibilities. The House reiterated its commitment to intensifying oversight in the sector, aiming to recover outstanding revenues, enforce accountability, and support national development through robust regulatory practices.