- Seven oil firms, including Belema Oil and Panocean, pledged to pay $37.4 million debt to Nigeria’s Federation Account by August 2025
- A review by the NUPRC uncovered irregularities in royalty payments, leading to a public commitment from the firms to settle their debts
- The House of Representatives warned 28 companies with unpaid royalties to comply with investigations or face sanctions
The House of Representatives has announced that seven oil firms have pledged to settle their combined debt of $37.4 million to the Federation Account before August 2025.
The commitment comes amid an ongoing investigation by the Public Accounts Committee (PAC) into irregularities within the oil and gas sector.
A statement from House spokesperson, Akin Rotimi, on Monday, March 10, revealed that the companies made this pledge following a thorough review of financial records from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which uncovered significant irregularities in royalty payments and reconciliation processes.
“This agreement follows a detailed review of financial records from the NUPRC, which uncovered significant irregularities in royalty payments and reconciliation processes within the sector,” Rotimi stated.
He added that the repayment commitments are part of a larger N9 trillion outstanding liability flagged in the Auditor General’s 2021 report submitted to the National Assembly.
The accumulated debts, which have been accumulating for over four years, point to systemic revenue leakages within the oil and gas industry, Rotimi noted.
The seven companies that have acknowledged their debts and committed to paying before August 2025 include: Belema Oil, Panocean Oil Nigeria Ltd, Newcross Exploration & Production Ltd, Dubri Oil Company Ltd, Chorus Energy, Amni International, and Network Exploration.
In addition to these seven firms, the PAC’s findings indicate that 45 other oil and gas companies owe a combined total of $1.7 billion (approximately N2.5 trillion) in unpaid royalties as of December 31, 2024.
Furthermore, nine companies, collectively owing $429.2 million, have disputed their outstanding balances and requested a reconciliation process with NUPRC to verify their liabilities.
These include Aradel/Niger Delta, Chevron, STAR DEEP, Shore Line, Seplat Producing Unlimited, Esso Erha, Esso Usan, Eroton Exploration, and Seplat Energy. The Committee has instructed the reconciliation process to be completed within two weeks, after which the firms must settle their verified debts without further delay.
Meanwhile, 28 companies, with a combined debt of $1.23 billion, have failed to respond to public notices or appear before the Committee. These include major players such as Addax Petroleum Exploration Nigeria Ltd, AITEO Group, Total E&P Nigeria, and Conoil Plc, among others.
The Committee has granted these companies an additional one-week grace period to provide the necessary documentation and appear before the panel. Failure to comply will result in legislative and regulatory sanctions to enforce accountability, Rotimi warned.
In a more positive development, the House confirmed that two oil firms, Shell Petroleum Development Company (SPDC) and Shell Nigeria Exploration & Production, have fully met their royalty obligations.
The House of Representatives reaffirmed its commitment to ensuring greater transparency and enforcing compliance across the oil and gas sector, calling for all stakeholders to uphold their financial and regulatory responsibilities.
Reps push for establishment of Bola Tinubu University
Meanwhile, TheRadar earlier reported that the House of Representatives in Nigeria had taken a significant step towards establishing a new higher institution, the Bola Ahmed Tinubu Federal University of Nigerian Languages.
The university, once established, would focus on promoting the learning and development of Nigerian languages and cultures.
According to the bill's provisions, the university aims to advance learning and offer equal educational opportunities to all, regardless of race, creed, sex, or political affiliation.
