Seven Oil firms pledge to pay $37.4m debt to Federation Account by August

In a major development from the House of Representatives’ Public Accounts Committee investigation, seven oil and gas companies have committed to remitting a total of $37,435,094.52 (approximately ₦58 billion) to the Federation Account before August 2025. The decision follows a detailed review of financial records by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which uncovered lapses in royalty payments and reconciliation processes within the sector.

Oil Sector Revenue Leakages Uncovered
The pledged payments are part of a broader ₦9 trillion debt flagged in the 2021 Auditor General’s report submitted to the National Assembly. Some of these outstanding liabilities have accrued over the past four years, underscoring persistent revenue leakages in the oil and gas sector.

Beyond the seven companies that have committed to payment, the House investigation has revealed that 45 oil and gas firms owe a staggering $1.7 billion (₦2.5 trillion) in unpaid royalty payments as of December 31, 2024.

Companies Committed to Payment
The seven companies that have agreed to settle their outstanding debts before August 2025 include:

Belema Oil
Panocean Oil Nigeria Ltd
Newcross Exploration & Production Ltd
Dubri Oil Company Ltd
Chorus Energy
Amni International
Network Exploration
Companies Contesting Debt Figures
Meanwhile, nine oil companies, with a combined outstanding balance of $429.2 million, have disputed their recorded liabilities and requested a reconciliation process with NUPRC. These firms include:

Aradel/Niger Delta
Chevron
STAR DEEP
Shore Line
Seplat Producing Unlimited
Esso Erha
Esso Usan
Eroton Exploration
Seplat Energy
The House Committee has mandated that reconciliation be completed within two weeks, after which all confirmed debts must be paid without further delay.

Companies Yet to Appear Before the House Committee
A total of 28 oil companies, collectively owing $1.23 billion, have failed to appear before the Public Accounts Committee or respond to public notices. Some of the defaulting firms include:

Addax Petroleum Exploration Nigeria Ltd
AITEO Group
Total E&P Nigeria (OML 100, 102, 52 & 99)
Oando Oil Ltd (OML 60, 61 & 62)
Nigeria Agip Exploration Ltd (NAE)
Conoil Plc
Oriental Energy Resources Limited
The Committee has given the affected companies one more week to submit their financial records or face legislative and regulatory sanctions.

Companies in Full Compliance
Only two firms were found to have fully met their royalty obligations:

Shell Petroleum Development Company (SPDC)
Shell Nigeria Exploration & Production
House of Reps Vows to Enforce Compliance
The House Committee on Public Accounts has reaffirmed its commitment to ensuring accountability and recovering outstanding revenues in Nigeria’s oil and gas sector. Lawmakers emphasized that companies benefiting from Nigeria’s natural resources must comply with financial obligations as stipulated under the Petroleum Industry Act (PIA).

The House of Representatives has warned that necessary legislative measures will be taken against companies that fail to comply, as part of ongoing efforts to plug revenue leakages and safeguard national income.