The House of Representatives Public Accounts Committee (PAC) has expressed frustration over the refusal of several oil companies to honor its invitation to explain their outstanding debts to the Federation.
In a public announcement published in several newspapers, the committee had summoned nine oil companies to appear before it on Monday, March 3, 2025, to clarify their financial obligations. However, the firms failed to show up, drawing the ire of the lawmakers.
Despite being invited, only one company responded to the committee’s invitation, while the others failed to appear or submit any explanations for their absence.
The companies expected to appear before the committee included Addax Petroleum Exploration Nigeria Ltd, AITEO Group, All Grace Energy, Amalgamated Oil Company Nigeria Limited, Amni International Petroleum Development Company Limited, Belemaoil Producing Ltd, Bilton Energy Limited, Britannia-U, and Waltersmith Petroman Limited.
The Chairman of the Investigation Sub-Committee, Hon. Isiaq Akinlade, in a pointed remark expressed concern over the refusal of oil companies to settle their outstanding debts, warning that it poses a serious threat to Nigeria’s fiscal stability.
Akinlade noted that the summons issued by the committee come at a critical time when the government is grappling with a significant budget deficit, following the recent approval of a ₦54.9 trillion budget. He stressed that failure to recover these funds could undermine the government’s ability to meet its financial targets and adequately fund key national projects.
The lawmaker further raised concerns over the failure of certain companies to meet their financial obligations to the government, questioning how the country’s budget can be effectively funded under such circumstances.
“How do we fund this budget if these companies continue to refuse to settle their obligations as and when due?” he asked. “Their actions undermine the fiscal integrity of the Federation and delay the progress of national development.”
Meanwhile, a representative from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr. Balarabe Haruna, presented details of the companies’ outstanding debts to the Federation Account. According to him, the unpaid sum stands at a staggering $506,565,187.96. The breakdown is as follows:
For Britannia-U, the operator of OML currently owes a total of $1,646,644.58 in outstanding payments. This debt comprises $1,062,417.03 for crude oil based on price and $584,227.55 for crude oil based on production.
Similarly, Waltersmith, operator of OML 16, has an accumulated debt of $8,739,281.20. This includes $2,844,273.48 for crude oil based on price, $5,277,193.41 for crude oil based on production, $372,078.31 for gas flaring penalties, and $245,736.00 for concession rentals.
All Grace Energy OML 17 owes a total of $2,043,083.98, consisting of $812,804.88 for crude oil by price, $533,301.40 for crude oil by production, and $696,977.70 for gas flares.
Amni International Petroleum has an outstanding debt of $434,948,763.41, with $433,246,518.83 owed for crude oil by production, $1,668,090.00 for gas flares, and $34,154.58 for concession rentals.
He added, “For Amalgamated Oil OML 156, the company’s debt includes $2,088.91 for concession rentals and $226,423.83 for gas sales, totaling $228,512.74.
Belemaoil owes a total of $1,703,617.68, made up of $977,793.54 for crude oil by price, $511,870.14 for gas flares, and $213,954.00 for concession rentals.
AITEO has a debt of $34,861,202.49, consisting of $27,197,780.87 for crude oil by price, $139,308.15 for gas sales, $7,381,653.47 for gas flares, and $142,460.00 for concession rentals.
Addax Exploration OML 126 owes $17,575,991.14, with $17,447,255.24 for gas flares and $128,735.90 for concession rentals.
Finally, Bilton owes a total of $5,044,514.57, made up of $4,123,850.60 for crude oil by price and $920,663.97 for gas flares,” he explained.
The total outstanding debts from the aforementioned oil companies amount to $506,565,187.96, underscoring the significant financial burden on the Federation.
The Public Accounts Committee unanimously given the listed companies 72 hours to appear and provide justifications for their debts. Should they fail to comply, the committee warned it would have no choice but to take further action, which could include issuing a ruling directing the companies to settle their outstanding liabilities within seven days.
The committee adjourned its session until today Tuesday, March 4, 2025, to facilitate the appearance of several oil companies. Those expected to appear include Chevron Nigeria Ltd (OML 90, 95, 49), Chorus Energy, Conoil Plc, Continental Oil & Gas Company Ltd., Dubri Oil Company Limited, Enageed Resources Limited, Shell Nigeria Exploration and Production Company, Energia Limited, and Eroton Exploration & Production Company Limited.
