Lawmakers Summon Conoil, Heirs Holdings, 26 Others Over $1.2 Trillion Debt
- Investigations from the House of Representatives committee on public accounts have revealed shocking debts owed to FG
- Oil and gas companies in Nigeria owe the federal government trillions of naira in unpaid royalties, the report showed
- While others are moving to pay, 28 have refused to appear before the committee, and the lawmakers have now given them an ultimatum
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Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The federal government is finally set to take action on the trillions of naira owed by oil companies in Nigeria.
The amount is an accumulation of unpaid royalties and other obligations due from the oil and gas companies to the federal government for up to four years.
Source: Getty Images
These issues arose from an ongoing investigation by the Public Accounts Committee in the House of Representatives, where financial records from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) revealed major lapses in financial reconciliation and payment of royalties.
The spokesperson of the House, Honourable Akin Rotimi, noted that the investigations showed recurrent issues of revenue leakages in the oil and gas sector.
The committee also revealed that 28 of the oil companies have not responded to their invitations or public notices so far.
Lawmakers issue ultimatum to 28 oil companies
The lawmakers issued one week of grace to the companies to appear before the committee with the relevant documents or face legal sanctions.
Honourable Rotimi said:
“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.”
Recall that an audit of the NUPRC and NMDPRA 2021 financial reports by the Auditor-General of the federation had uncovered and queried huge outstanding liabilities amounting to N9 trillion.
28 companies owe $1.2 trillion
These 28 companies have combined debt obligations to the federal government amounting to $1.2 trillion ($1,230,708,293.14).
The 28 companies include Oando Oil Ltd (OML 60, 61 & 62), Millennium Oil and Gas Company Limited, AITEO Groups, All Grace Energy, Bilton Energy Limited, Enageed Resources Limited, Waltersmith Petroman Limited and Addax Petroleum Exploration Nigeria Ltd.
Others are Conoil Plc, Continental Oil & Gas Company Ltd, Energia Limited, Amalgamated Oil Company Nigeria Limited, General Hydrocarbons Limited, Total E&P Nigeria (OML 100, 102, 52 & 99), First E&P Ltd, Frontier Oil Limited, Green Energy International Ltd and Nigeria Agip Exploration Ltd (NAE).
The rest are; Neconde Energy Limited, Nigeria Petroleum Development Company (NPDC) – OML 60, 61 & 63, Heirs Holding, Platform Petroleum Limited, Lekoil Oil and Gas Investments Limited, Midwestern Oil and Gas Limited, Pillar Oil Limited, Universal Energy Limited / Sinpec, Sahara Field Production Limited, and Oriental Energy Resources Limited.
FG set to recover N58 billion
As the federal government is threatening to take action, 7 out of 48 indebted companies discovered in the audit have acknowledged their debts and pledged to clear them within five months.
They include Belema Oil, Chorus Energy, Newcross Exploration & Production Ltd., Panocean Oil Nigeria Ltd, Dubri Oil Company Ltd, Amni International, and Network Exploration, with a total of $37,435,094.52 (approximately N58 billion), which they promised would be remitted before the end of August 2025.
9 oil companies contest debt claims
Source: Getty Images
Honorable Rotimi also disclosed that nine of the companies are contesting the debt claims. These companies include Chevron, Seplat Energy, Seplat Producing Unlimited, Esso Erha, Esso Usan, Eroton Exploration, Chevron, STAR DEEP, Aradel/Niger Delta, and Shore Line.
These companies have requested a reconciliation process with NUPRC to clarify their liabilities, and the committee has directed that this be done speedily.
Audit report reveals N313 billion unremitted to FG
In related news, an audit report from the Office of the Auditor General of Nigeria uncovered unaccounted sums in the NUPRC and NMDPRA.
The two regulatory bodies have no explanation for these monies, which include outstanding royalties from the NNPCL.
The NUPRC responded that some of the sums have been remitted, and it is still making efforts with the NNPC to refund the rest.
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Proofreading by Nkem Ikeke, copy editor at Legit.ng.
Source: Legit.ng
Ruth Okwumbu (Business Editor) Ruth Okwumbu-Imafidon is a business journalist with over a decade's experience. She holds both a Masters' and B.Sc. degrees Mass Communication from the University of Nigeria, Nsukka, and Delta State University. Before joining Legit.ng, she has worked in reputable media including Nairametrics. She can be reached via ruth.okwumbu@corps.legit.ng
Nkem Ikeke (Copy editor) Nkem Ikeke is currently a copy editor who also writes for the politics and current affairs desk on weekends. She holds a Bachelor of Arts in Mass Communication degree from the University of Nigeria, Nsukka (2010), and has over 10 years of work experience in the media industry (Reporter, News Agency of Nigeria). Email: n.ikeke@corp.legit.ng
