Reps begin Investigation Into ₦432bn Oil revenue debt

The House of Representatives Public Accounts Committee (PAC) has commenced an investigation into the outstanding indebtedness of oil companies and the Nigerian National Petroleum Company Limited (NNPCL) to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), with the liabilities rising to N432 billion. The investigation follows findings contained in the Auditor-General’s annual audit reports on the indebtedness arising from various regulatory and petroleum-related obligations.

According to the Auditor-General’s 2023 Annual Audit Report, the NNPCL and oil companies operating under the umbrella of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Major Marketers Association of Nigeria (MOMAN) and Major Energy Marketers Association of Nigeria (MEMAN) were indebted to NMDPRA to the tune of more than ₦392 billion. The report indicated that the debt comprised obligations arising from Balancing Allowance, National Transport Average, 1% Midstream and Downstream Gas Infrastructure Fund, as well as legacy debts associated with imports, coastal and credit transactions.

A breakdown of the 2023 figures showed that NNPCL owed over ₦162 billion, while the oil companies owed ₦230 billion, bringing the combined indebtedness to about ₦393 billion. However, the Auditor-General’s 2024 report indicated that the outstanding debt had increased to ₦432 billion, excluding the indebtedness of NNPCL. Further review of submissions made by the NMDPRA to the Public Accounts Committee showed that 146 oil companies operating under DAPPMAN, MEMAN and MOMAN owed the Authority ₦327 billion as at 2025.