The Nigerian House of Representatives has summoned 48 oil companies over N9.4 trillion in unpaid debts owed to the federal government. The investigation concerns unpaid royalties, gas flare penalties, and obligations under production-sharing contracts. Hearings are set for March 3-7, 2025, to address the issue.
The Nigerian House of Representatives has summoned 48 oil companies to account for a combined debt of approximately N9.4 trillion owed to the federal government. The unpaid amounts include royalties, gas flare penalties, and outstanding obligations from production-sharing contracts. This was revealed following an investigation into the Auditor-General’s Annual Report for the 2021 fiscal year.
According to Akin Rotimi, the spokesperson for the House, the investigation showed that the debts had been unresolved as of late 2024, despite legal provisions in the Petroleum Industry Act (PIA) that mandate payment within 30 days. The House Committee on Public Accounts, led by Bamidele Salam, has invited representatives of the oil firms to appear for hearings from March 3 to March 7, 2025, at the National Assembly in Abuja.
The companies involved include major industry players like Chevron, Shell, Oando, and Conoil, along with smaller operators. The hearings will focus on the failure of these companies to meet their financial obligations to the Nigerian government. The lawmakers stressed the need for oil companies to pay what they owe, calling it essential to maintaining the integrity and accountability of the country’s natural resources. Any company that fails to attend the hearings will face further legal action.
This investigation forms part of ongoing efforts by the Nigerian government to recover billions in unpaid dues, with assistance from bodies like the Nigeria Extractive Industries Transparency Initiative (NEITI) and the Economic and Financial Crimes Commission (EFCC).
