Reps Investigate NNPC, Oil Firm Over $1.6bn Debt as Dangote Reacts to Alleged Adulterated Fuel
- An investigation is underway into the unpaid bills owed to the Federation Account by NNPCL and oil companies
- As of the end of 2021, NNPCL and other oil companies owed $1.6 billion in royalties to the NUPRC
- Through 2025, the investigation will be conducted to recover the unpaid funds and prevent further financial misconduct in the industry
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Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Nigerian National Petroleum Company Limited and oil businesses' unpaid debts to the Federation Account are the subject of an investigation launched by the House of Representatives Public Accounts Committee on Tuesday, February 18.
Source: Getty Images
Following inquiries from the Office of the Auditor-General for the Federation about NNPCL's financial responsibilities, the subcommittee chairman, Akinlade Isiaq, presided over the investigative hearing.
According to the reports, NNPCL and other oil companies owed the Nigerian Upstream Petroleum Regulatory Commission $1.6 billion in royalties as of the end of 2021 under the terms of the Modified Carry Arrangement, Repayment Agreement, and Production Sharing Contract.
NNPCL Group Chief Executive Officer Mele Kyari, who was accompanied by Chief Financial Officer Dapo Segun, responded to the questions by stating that a portion of the contested monies had been utilised to fund government subsidies and priority projects.
He said:
“Once the reconciliation is concluded, relevant reports will be made available to all appropriate agencies and stakeholders.”
With a specific duty to ascertain the present state of the debts as of December 2024 and guarantee the recovery of these large sums, the subcommittee has pledged to carry out its investigation.
In order to retrieve the unpaid money and stop additional financial malfeasance in the sector, the investigation is scheduled to last through 2025.
Isiaq reaffirmed in his remarks the subcommittee's dedication to conducting the probe in a transparent and professional manner.
Source: Getty Images
“This hearing is an essential step towards ensuring that Nigeria’s oil and gas resources are properly accounted for. We are determined to take all necessary actions to recover these debts in the interest of the Federation and its citizens.”
Key stakeholders, including the Accountant-General of the Federation, the Central Bank of Nigeria, the Nigeria Extractive Industries Transparency Initiative, the Ministry of Finance, the Revenue Mobilisation Allocation and Fiscal Commission, the Bureau of Public Procurement, and the Federal Inland Revenue Service, have also been invited to provide clarification on the financial discrepancies.
Dangote Refinery replies NNPC over alleged adulterated fuel
In another report by Legit.ng, officials of the mega Dangote Refinery have disclosed that the alleged adulterated fuel with high burn rates was allegedly bought from the retail outlets belonging to Nigerian National Petroleum Company Limited (NNPC).
On Saturday, February 15, 2025, the state oil firm refuted claims that it sells adulterated petrol with a high burn rate.
A viral video seen by Legit.ng surfaced online with a content creator claiming that he bought Dangote Petrol from the MRS filling station at N925 and the same quantity from NNPC retail out at N945 per litre.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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Source: Legit.ng
