The House of Representatives Committee on Public Accounts has issued an ultimatum to eight oil companies, demanding that they appear before it within 72 hours to respond to allegations of non-remittance of ¦ 9.4 trillion in royalties to the Federation Account.
The companies are among nine firms summoned by a subcommittee investigating unpaid royalties, as flagged in a report by the Office of the Auditor General for the Federation (OAuGF).
Of the nine invited oil firms, only Belema Oil Producing Ltd, represented by its Managing Director, Ahmad H. Sambk, attended the hearing on Monday. However, the committee instructed the company to return on Tuesday due to the late submission of its documents.
The eight defaulting companies that failed to honour the invitation include: Addax Petroleum Exploration Nigeria Ltd; AITEO Group; All Grace Energy; Amalgamated Oil Company Nigeria Limited; Amni International Petroleum Development Company Limited; Bilton Energy Limited; Britannia-U; Waltersmith Petroman Limited; Unpaid Royalties and Financial Irregularities.
The Auditor General’s report outlines various financial obligations allegedly unpaid by the companies, including royalties, concession rentals, gas flare penalties, and arrears under Production Sharing Contracts, Repayment Agreements, and Modified Carry Arrangements.
The report states: $1.74 billion (¦ 1.39 trillion) in oil royalties remained unpaid as of December 2021; $13.8 million (¦ 11 billion) in royalties on gas sales (foreign) was still outstanding; ¦ 848.2 billion was owed in domestic gas royalties; $496.7 million (¦ 396 billion) was unpaid in gas flare penalties by 23 operators; $7.68 million (¦ 6.1 billion) in additional outstanding gas revenue remained unremitted.
During the hearing, the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), represented by Balarabe Haruna, provided a detailed breakdown of debts owed by individual companies, as documented by the Auditor General’s Office.
The Chairman of the ad-hoc committee, Hon. Tunji Olawuyi, expressed frustration over the failure of the oil firms to honour the invitation.
“The Committee, in the exercise of its constitutional mandate, wrote to the defaulting companies on 28th January 2025, requesting them to appear on 19th February 2025, but they all failed to honour the invitation,” he said.
“Furthermore, the Committee published the summons in five national newspapers, instructing all companies to appear today, 3rd February, to explain their indebtedness to the Federation. Yet, only one company complied.”
Hon. Olawuyi stressed the urgent need for the oil firms to settle their debts, especially given the recent passage and signing of the ¦ 54.9 trillion 2025 national budget.
“These are the kinds of funds we expect to finance the budget, yet these companies are refusing to pay their obligations as and when due,” he lamented.
The committee resolved to give the eight defaulting companies 72 hours to appear before it and justify their outstanding liabilities.
“Failure to appear within the stipulated time will leave the committee with no option but to rule against them and direct immediate settlement of their debts within seven days,” Olawuyi warned.
The House of Representatives has vowed to ensure accountability in the oil sector and recover all outstanding revenues due to the Nigerian government.
