Reps Secure $37.4M Commitment from Oil Firms Amid $1.7B Unpaid Royalties Probe

Nigeria’s House of Representatives said it has secured the commitment of sevens major operators in the oil and gas industry to remit a total of $37,435,094.52 (approximately ₦58 billion) to the Federation Account before August 2025.

 

Akin Rotimi, the spokesperson for the House of Representatives said the commitment of the oil companies to pay the unremitted funds was secured during the ongoing investigation by the Public Accounts Committee of the House of Representatives.

 

 

He listed the seven companies that have acknowledged their outstanding debts and have agreed to settle them before August 2025 as Belema Oil, Panocean Oil Nigeria Ltd, Newcross Exploration & Production Ltd, Dubri Oil Company Ltd, Chorus Energy, Amni International and Network Exploration

 

“This commitment follows the Committee’s scrutiny of financial records from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which flagged significant lapses in royalty payments and reconciliation processes across the sector,” Rotimi said.

 

According to to the statement, pledged repayment forms part of a ₦9 trillion outstanding liability queried by the Auditor General for the Federation in his 2021 report submitted to the National Assembly.

 

He added that the debts, some of which have accrued over a period of four years, highlight longstanding revenue leakages in the oil and gas sector.

 

 

The House of Representatives spokesperson also revealed that the Committee’s investigation uncovered another $1.7 billion (₦2.5 trillion) owed by 45 oil and gas companies in unpaid royalty payments as of December 31, 2024.

 

According to the statement, nine companies, with a combined outstanding balance of $429.2 million, have contested the figures and requested a reconciliation process with NUPRC to verify their actual liabilities. These companies include: Aradel/Niger Delta, Chevron, STAR DEEP, Shore Line, Seplat Producing Unlimited, Esso Erha, Esso Usan, Eroton Exploration and Seplat Energy.

 

“The Committee has directed that the reconciliation process be concluded within two weeks, after which companies must settle their confirmed debts without further delay,” the statement indicated.

 

However, the Reps’ spokesperson said 28 companies, collectively owing $1,230,708,293.14, have failed to honor invitations by the Committee or respond to public notices. These companies include: Addax Petroleum Exploration Nigeria Ltd, AITEO Group, All Grace Energy, Amalgamated Oil Company Nigeria Limited, Total E&P Nigeria (OML 100, 102, 52 & 99), Bilton Energy Limited, Enageed Resources Limited, Waltersmith Petroman Limited, Conoil Plc, Continental Oil & Gas Company Ltd, Energia Limited, First E&P Ltd, Frontier Oil Limited, General Hydrocarbons Limited, Green Energy International Ltd, Nigeria Agip Exploration Ltd (NAE), Neconde Energy Limited, Nigeria Petroleum Development Company (NPDC) – OML 60, 61 & 63, Lekoil Oil and Gas Investments Limited, Midwestern Oil and Gas Limited, Millennium Oil and Gas Company Limited, Oando Oil Ltd (OML 60, 61 & 62), Heirs Holding, Pillar Oil Limited, Platform Petroleum Limited, Universal Energy Limited / Sinpec, Sahara Field Production Limited and Oriental Energy Resources Limited.

 

“The Committee has given the affected companies a further grace period of one week to submit all relevant documentation regarding their statutory obligations and appear before the Committee. Failure to comply within this timeframe will result in firm legislative and regulatory sanctions to enforce accountability and ensure compliance”

 

However, the statement indicated that Shell Petroleum Development Company (SPDC) and Shell Nigeria Exploration & Production have fully met their royalty obligation to Nigeria.

 

“The House Committee on Public Accounts remains steadfast in ensuring that all oil and gas companies operating in Nigeria adhere to statutory payment obligations in line with the Petroleum Industry Act (PIA). The Committee will continue to intensify oversight to recover outstanding revenues and plug revenue leakages in the industry.

 

“The House of Representatives reiterates that companies benefiting from Nigeria’s natural resources must comply with statutory financial obligations to support national development. The necessary legislative measures will be taken to enforce compliance and safeguard public revenue,” the statement concluded.

 

 

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