Financial Energy Review
……by Ben Ndubuwa….
The House of Representatives has successfully secured a commitment from seven oil companies to remit a total of $37,435,094.52 (approximately N58 billion) into the Federation Account by August 2025. This follows an ongoing investigation by the Public Accounts Committee into financial discrepancies within Nigeria’s oil sector.
The companies involved in the agreement include Belema Oil, Panocean Oil Nigeria Ltd, Newcross Exploration & Production Ltd, Dubri Oil Company Ltd, Chorus Energy, Amni International, and Network Exploration. The House spokesperson, Hon. Akin Rotimi, confirmed that the companies have pledged to address their outstanding payments after a review of financial records by the Public Accounts Committee.
“The investigation, which reviewed financial records from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), uncovered significant lapses in royalty payments and discrepancies in the reconciliation processes,” Rotimi said in a statement. “This has prompted the companies to ensure they meet their financial obligations to the Federation Account.”
The pledged payment is part of a broader issue, as the Auditor General’s 2021 report to the National Assembly questioned an outstanding liability of N9 trillion. According to Rotimi, the debts have accumulated over the past four years, underscoring persistent revenue leakages in the oil and gas sector.
In addition to the seven companies, the Committee has discovered that 45 oil and gas companies owe a total of $1.7 billion (around N2.5 trillion) in unpaid royalties as of December 31, 2024. Nine of these companies, including Chevron and Seplat Energy, have disputed the figures, requesting a reconciliation process with the NUPRC.
“We have mandated that the reconciliation process be completed within two weeks,” Rotimi emphasized. “After this period, companies will be required to settle any confirmed debts promptly, without delay.”
The ongoing investigation highlights the need for greater accountability and transparency within Nigeria’s oil sector, with a focus on ensuring that companies meet their financial obligations to the nation.
