Reps Begin Probe Into ₦432bn Debt Allegedly Owed by NNPC, Oil Firms

The House of Representatives has commenced an investigation into outstanding debts of more than ₦432 billion allegedly owed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) by the Nigerian National Petroleum Company Limited (NNPCL) and several oil companies.

The probe is being conducted by the House Public Accounts Committee (PAC), following findings contained in the Auditor-General of the Federation’s reports on unpaid petroleum-related obligations.

According to the committee, chaired by Representative Bamidele Salam, it said they would examine the records behind the outstanding liabilities.

Also, they will determine how the debts accumulated, what payments have been made and the measures taken by the regulatory authority to recover the money.

The latest figure under review stands at ₦432,072,557,867.17.

The committee is also expected to summon affected companies and relevant government officials to provide documents explaining their obligations to the NMDPRA.

Salam, in a statement on Wednesday announcing the commencement of the committee’s sitting, warned companies invited before the panel not to disregard the summons.

“Chairman of the Committee, Representative Bamidele Salam, said the Committee would ensure that all relevant entities account for their obligations and provide the necessary records to enable Parliament to establish the circumstances surrounding the outstanding debts.

“Any company invited by this Committee must respect the people’s Parliament of the Federal Republic of Nigeria by honouring the summons with appropriate representation and all relevant documents. We are not here to witch-hunt anybody; our responsibility is to establish the facts, protect public revenue and ensure that every naira due to the government is properly accounted for,” he said.

The investigation stems from concerns raised in the Auditor-General’s annual audit reports over revenue that has remained outstanding within the petroleum sector.

The 2023 audit report had placed the combined indebtedness of NNPCL and affected oil companies at ₦392.73 billion.

From that figure, NNPCL was listed as owing ₦162,456,750,832.47. Other petroleum companies accounted for ₦230,268,790,205.77.

The companies involved include operators under the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Major Marketers Association of Nigeria (MOMAN) and the Major Energy Marketers Association of Nigeria (MEMAN).

The liabilities are linked to several regulatory and petroleum-sector obligations. These include Balancing Allowance, National Transport Average and the one per cent Midstream and Downstream Gas Infrastructure Fund.

Some of the outstanding amounts are also connected to legacy transactions involving petroleum imports, coastal transactions and credit arrangements.

The 2024 Auditor-General’s report subsequently put the outstanding liabilities at ₦432.07 billion, although the figure excludes NNPCL’s indebtedness.

This has prompted the lawmakers to seek further clarification on how the liability increased and why significant portions of the money have remained unpaid.

Additional information submitted by the NMDPRA to the Public Accounts Committee showed that 146 oil companies under DAPPMAN, MEMAN and MOMAN owed the authority ₦327,525,987,255.67 as of 2025.

The committee also noted that some of the outstanding obligations date back to 2017 and cover several years of unpaid liabilities.

As part of the investigation, lawmakers are expected to scrutinise the records used to determine the debts.

They will also examine the period covered by the liabilities, amounts already paid by the affected companies and balances that remain outstanding.

The recovery efforts of the NMDPRA will also come under review.

The committee wants to establish whether the regulatory authority took sufficient steps to collect the funds and whether any enforcement measures were applied to companies that failed to meet their obligations.

The PAC has in recent years examined several audit queries involving government agencies and public revenue.

Its current focus on the petroleum sector places particular attention on funds that should accrue to government through regulatory and statutory payments.

For the affected companies, the hearings are expected to provide an opportunity to present their records and explain the basis of any disputed liabilities.

The committee has made it clear that the investigation is not intended to target any particular company.

Instead, it wants to establish the facts surrounding the debts and determine what government revenue remains recoverable.

Salam said the panel would exercise its constitutional oversight responsibility by ensuring that public revenue is properly accounted for.