At least seven oil companies indicted in the Auditor General’s report for unpaid royalties have committed to refunding approximately $37.4 million (₦58 billion) to the Federation Account by August 2025.
The commitment follows an ongoing investigation by the House Committee on Public Accounts, which is reviewing financial records from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The 2021 audit report from the Office of the Auditor General for the Federation had flagged 23 oil companies for failing to meet their royalty obligations, contributing to significant revenue leakages in the oil and gas sector.
Some of the indicted firms have acknowledged their outstanding debts and pledged to settle them before the deadline. However, nine companies, with a combined outstanding balance of $429.2 million, have contested the figures assigned to them and requested a reconciliation process with the NUPRC. In response, the House Committee has mandated that the verification process be concluded within two weeks, after which the companies must settle their confirmed debts without delay.
Meanwhile, several major oil and gas firms, including Addax Petroleum, AITEO Group, Total E&P Nigeria, Conoil Plc, Oando, and Continental Oil & Gas Company Ltd, have reportedly ignored invitations from the House Committee to respond to allegations against them. In total, 28 companies, owing a combined $1.23 billion in unpaid royalties, have failed to appear before lawmakers or submit relevant documentation regarding their financial obligations.
The House Committee has now issued a final one-week ultimatum for these companies to comply. It has warned that failure to do so will result in strict legislative and regulatory sanctions to enforce accountability.
Beyond the companies that have committed to repayment, the Committee’s investigation has uncovered an additional $1.7 billion (₦2.5 trillion) in unpaid royalties owed by 45 oil and gas firms as of December 31, 2024. Some of these debts have been outstanding for over four years, highlighting longstanding financial discrepancies within the industry.
The House of Representatives has reaffirmed its commitment to ensuring that all oil and gas companies operating in Nigeria fulfill their financial obligations in line with the Petroleum Industry Act (PIA). It emphasized that companies benefiting from the country’s natural resources must comply with statutory payment requirements to support national development.
The House also vowed to intensify its oversight efforts to recover outstanding revenues and prevent further losses to the Federation Account, stressing that necessary legislative measures will be taken to enforce compliance and safeguard public funds.
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