The Nigerian House of Representatives has initiated a series of investigative hearings to address significant outstanding debts owed by oil companies to the Federation Account, totaling approximately ₦9.4 trillion. These debts encompass unpaid royalties, concession rentals, gas flare penalties, and obligations arising from production-sharing contracts, repayment agreements, and modified carry arrangements.
The hearings, organized by the House Committee on Public Accounts, are scheduled from Monday, March 3, to Friday, March 7, 2025, at the National Assembly Complex in Abuja. The committee has summoned representatives from 48 oil companies, including major firms such as Chevron Nigeria Ltd, Oando Oil Ltd, Shell Nigeria Exploration and Production Company, Total E&P Nigeria, and Mobil Producing Nigeria Unlimited, among others.
This investigation follows revelations from the Auditor-General's Annual Report on the Consolidated Financial Statement for the year ending December 31, 2021, which highlighted that multiple oil companies have defaulted on their statutory payments. Despite the Petroleum Industry Act's stipulation that such debts be settled within 30 days, many liabilities have remained unsettled since 2021.
The committee has mandated that Chief Executive Officers lead the delegations from the summoned companies. Failure to comply with the summons may result in further actions. Rep. Bamidele Salam, Chairman of the Public Accounts Committee, emphasized the importance of accountability in managing the nation's resources and expressed a commitment to a collaborative approach with all stakeholders to address these discrepancies effectively and efficiently.
The House of Representatives reiterated its dedication to conducting an open and transparent investigation, aiming to ensure that oil companies fulfill their statutory obligations and maintain the integrity and accountability of Nigeria's resources.