By Christiana Ekpa
The House of Representatives Committee on Public Accounts has begun investigation into outstanding debts owed to the Federation Accounts by the NNPC Ltd and oil companies.
The House of Representatives Public Accounts Committee has initiated an investigation into the Nigerian National Petroleum Company Limited (NNPCL) and oil companies’ outstanding debts to the Federation Accounts.
The investigative hearing, chaired by the sub-committee chairman, Hon. Akinlade Isiaq, which comes after the Office of the Auditor General for the Federation raised concerns regarding the NNPC Ltd and oil companies financial obligations.
The report alleged that, as of the end of 2021, NNPC Ltd and oil companies was indebted to the Federation in the amount of $1.6 billion in royalties owed to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) under the Production Sharing Contract, Repayment Agreement, and Modified Carry Arrangement.
Further findings show that the NNPCL’s claims against the Federation reached N1.9 Trillion.
In response to the queries, NNPC GCEO Represented by the Chief Financial Officer Mr. Dapo Segun said that part of funds as applicable then went into the funding for the government’s priority projects (GPP) and subsiding funding (up until sept 2024 when it was removed)are derived from deductions from the Federation’s crude oil and gas entitlements, which include royalties for the period as appropriated to the various projects and applications in the budget passed by the National Assembly. It is important to note that no deductions were made in 2023 and 2024 for GPP, as these deductions are contingent upon the passage of the Petroleum Industry Act (PIA) by the National Assembly.
“With regard to the claims between the Federation and NNPC Limited as of December 31, 2024, the reconciliation process is still ongoing under the oversight of the Honourable Minister of Finance and Coordinating Minister of the Economy. Once the reconciliation is concluded, relevant reports will be made available to all appropriate agencies and stakeholders,” he explained.
The Sub-Committee has vowed to continue its investigation, with a clear mandate to determine the current status of these debts as of December 2024, and to ensure that these significant amounts are recovered.
The investigation is set to continue through 2025, with the aim of recovering the funds owed and preventing further financial mismanagement within the industry.
In his earlier remarks, Hon. Akinlade Isiaq reiterated the Sub-Committee’s commitment to professionalism and transparency in handling the investigation.
“This hearing is an essential step toward ensuring that Nigeria’s oil and gas resources are properly accounted for. We are determined to take all necessary actions to recover these debts in the interest of the Federation and its citizens.”
The Committee also invited the alleged oil companies indicted by the NUPRC report that owed the federal government the sum of $929m as at 30th September, 2024.
