Abuja, Nigeria — The House of Representatives Committee on Public Accounts has opened an investigation into outstanding debts owed to the Federation Account by the Nigerian National Petroleum Company Limited (NNPCL) and several oil firms.
The probe was initiated following concerns raised by the Office of the Auditor General for the Federation, highlighting unresolved financial obligations by NNPCL and various petroleum companies.
According to the Auditor General’s report, as of December 2021, NNPCL and oil companies owed the Federation approximately $1.6 billion in unpaid royalties to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). These debts stem from the Production Sharing Contract, Repayment Agreement, and Modified Carry Arrangement. Additionally, records indicate that NNPCL’s financial claims against the Federation stood at N1.9 trillion.
NNPCL Responds to Allegations
During the investigative session, NNPCL’s Group Chief Executive Officer (GCEO), represented by Chief Financial Officer, Mr. Dapo Segun, clarified that a portion of the disputed funds had been allocated to Government Priority Projects (GPP) and subsidy payments, which were sustained until subsidy removal in September 2024.
He further explained that deductions were made from the Federation’s crude oil and gas entitlements, including royalties, and were used to finance various projects, aligning with allocations approved by the National Assembly.
Legislative Action and Next Steps
Chairman of the House Sub-Committee on Public Accounts, Mr. Akinlade Isiaq, confirmed that the investigation will extend into 2025 to assess the current debt status and ensure the recovery of outstanding funds.
“Our goal is to conduct a professional and transparent investigation to ensure accountability and financial discipline,” Mr. Isiaq assured.
Furthermore, the Committee has summoned oil companies flagged in the NUPRC report, which revealed that they collectively owed the Federal Government $929 million as of September 30, 2024.
By Taiwo Olatinwo | February 19, 2025
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