HoR Begins Investigations on ₦9.4 trillion Debts by Oil Companies
Abuja (Core Reporters) While the Federal government of Nigeria borrowed money to fund yearly budget some oil companies if not all are reportedly indebted to FG to the tune of ₦9.4 trillion, an amount that can fund some capital budget of the nation.
However, the House of Representatives, through its Committee on Public Accounts, ha announced its commencement of a series of investigative hearings aimed at addressing significant outstanding debts owed by several oil companies to the Federation Account.
“This initiative is in strict compliance with the Committee’s constitutional mandate under Sections 85, 88, and 89 of the Constitution of the Federal Republic of Nigeria 1999 (as amended), as well as Order XX – Rule 6 of the House of Representatives Standing Orders (eleventh edition).
During the review of the Auditor-General’s Annual Report on the Consolidated Financial Statement for the year ended December 31, 2021, and following further in-depth investigations, it was revealed that, as of the last quarter of 2024, several oil companies owe a combined total of approximately ₦9.4 trillion.
This amount covers unpaid royalties, concession rentals, and gas flare penalties, in addition to obligations arising from Production Sharing Contracts, Repayment Agreements, and Modified Carry Arrangements. Despite the clear provisions of the Petroleum Industry Act – which require such debts to be settled within 30 days – many of these liabilities have remained unsettled since 2021.
Core Reporters report that the investigation hearing will commence on Monday March 4, through Friday, March 7, 2025.
About 48 oil companies will be investigated including; Chevron, Oando, AITEO Group and All Grace Energy, among others.
The Chairman,House Committee on Public Accounts, Rep. Bamidele Salam stressed that Oil companies must fulfill their statutory obligations to maintain the integrity and accountability of our nation’s resources. “We welcome a collaborative approach with all stakeholders as we work together to address these discrepancies in an effective and efficient manner.”
According to him, “affected organisations have been duly notified, and this public notice is for the public records, and in line with our commitment to an open parliament that is transparent and accountable.”
