Nigeria’s lower legislative chamber, through its Committee on Public Accounts, is initiating a series of investigative hearings to address substantial outstanding debts owed by various oil companies to the country’s Federation Account (FAAC).
The lawmaker Akin Rotimi, Jr. announced this in a press release on Sunday, inviting oil companies to submit the requested documents and appear before the Committee at Meeting Room 446, Fourth Floor, House of Representatives, National Assembly Complex, Abuja.
A review of the Auditor-General’s Annual Report on the Consolidated Financial Statement for the year ended December 31, 2021, and subsequent in-depth research, revealed that, as of the final quarter of 2024, numerous oil companies owed a total of approximately ₦9.4 trillion.
The Committee’s constitutional mandate, as outlined in Sections 85, 88, and 89 of the Federal Republic of Nigeria 1999 (as amended).
Moreover, Bamidele Salam, Chairman of the House Committee on Public Accounts,commented on the approach, stating:
“Oil companies must fulfill their statutory obligations to maintain the integrity and accountability of our nation’s resources. We welcome a collaborative approach with all stakeholders as we work together to address these discrepancies in an effective and efficient manner.”
This sum encompasses unpaid royalties, concession fees, and gas flare fines, alongside obligations arising from Modified Carry Arrangements, Production Sharing Contracts, and Repayment Agreements.
Although the Petroleum Industry Act requires these debts to be paid within 30 days, many have remained unpaid since 2021.
The Chief Executive Officer and any other officer(s) with pertinent knowledge of the matters under investigation are expected personally represent each organisation.
The Committee cautions that defaulting groups may face additional sanctions should they fail to appear on the scheduled date.
The companies involved include Oando Oil Ltd (OML 60, 61 & 62), Heirs Holdings, and Platform Petroleum Limited.
Others are Shell Petroleum Development Company (OML 27), Universal Energy Limited/Sinpec, Shoreline Natural Resources, and Star Deep Water Petroleum Limited.
Also listed are Sahara Field Production Limited and Mobil Producing Nigeria Unlimited (OML 67 & 70), among others.
