Seven Oil Firms Pledge to Pay $37.4 Million Debt to Federation Account by August

Seven oil and gas companies have committed to remitting $37,435,094.52 (approximately ₦58 billion) to the Federation Account before August 2025. This development comes as part of an ongoing investigation by the House of Representatives’ Public Accounts Committee, which has been reviewing financial records and uncovering lapses in royalty payments within the sector.

The pledged payments are part of a larger ₦9 trillion debt flagged in the 2021 Auditor General’s report submitted to the National Assembly. Some of these liabilities have been accumulating for over four years, highlighting persistent revenue leakages in Nigeria’s oil and gas sector.

Beyond the seven companies that have agreed to settle their debts, the House investigation has revealed that 45 oil and gas firms collectively owe an outstanding $1.7 billion (₦2.5 trillion) in unpaid royalties as of December 31, 2024.

The companies that have committed to clearing their outstanding debts 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.

Meanwhile, nine other oil companies, with a combined debt of $429.2 million, have contested their recorded liabilities and requested a reconciliation process with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). These firms include Aradel/Niger Delta, Chevron, STAR DEEP, Shore Line, Seplat Producing Unlimited, Esso Erha, Esso Usan, Eroton Exploration, and Seplat Energy. The House Committee has mandated that the reconciliation process be completed within two weeks, after which all confirmed debts must be paid without further delay.

In contrast, 28 oil companies, collectively owing $1.23 billion, have failed to appear before the Public Accounts Committee or respond to public notices. Some of the defaulting firms include Addax Petroleum Exploration Nigeria Ltd, AITEO Group, Total E&P Nigeria (OML 100, 102, 52 & 99), Oando Oil Ltd (OML 60, 61 & 62), Nigeria Agip Exploration Ltd (NAE), Conoil Plc, and Oriental Energy Resources Limited. The Committee has given these companies one more week to submit their financial records or face legislative and regulatory sanctions.

The investigation also identified two oil firms, Shell Petroleum Development Company (SPDC) and Shell Nigeria Exploration & Production, as the only companies found to have fully met their royalty obligations.

The House Committee on Public Accounts has reaffirmed its commitment to ensuring accountability and recovering outstanding revenues in the oil and gas sector. Lawmakers emphasized that companies benefiting from Nigeria’s natural resources must comply with financial obligations as required under the Petroleum Industry Act (PIA).

The House of Representatives has warned that companies failing to comply will face necessary legislative measures. The government’s efforts to plug revenue leakages and enforce payment obligations are seen as critical to safeguarding national income and ensuring transparency in the management of the country’s oil resources.