At least seven oil companies indicted for unpaid royalties have pledged to refund approximately $37.4 million to the Federation Account by August 2025, following an ongoing investigation by the House of Representatives Committee on Public Accounts.
The companies are part of 23 firms named in the 2021 Auditor General’s report, which highlighted significant revenue leakages in Nigeria’s oil and gas sector due to unremitted royalties. House spokesperson Akintunde Rotimi confirmed the commitment in a statement issued in Abuja.
While some firms have agreed to settle their outstanding debts, others, including Addax Petroleum, AITEO Group, Total E&P Nigeria, Conoil Plc, and Oando, have ignored invitations from the Committee to respond to the allegations.
The investigation revealed that a total of $1.7 billion (₦2.5 trillion) remains outstanding in unpaid royalties as of December 31, 2024, across 45 oil and gas companies. The House Committee, in collaboration with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has flagged serious lapses in royalty payments and reconciliation processes.
Additionally, nine companies, including Chevron, Seplat Producing, and Esso Erha, have contested their assigned debts, requesting a reconciliation process with NUPRC. The Committee has directed that this process be completed within two weeks, after which all confirmed debts must be settled without delay.
Despite multiple invitations, 28 companies, collectively owing $1.23 billion, have failed to respond to the Committee’s inquiries. These firms, including Nigeria Agip Exploration Ltd, Neconde Energy Ltd, NPDC, Heirs Holding, and Platform Petroleum, have been given one final week to submit relevant documentation and appear before the Committee.
Failure to comply will result in legislative and regulatory sanctions, with the House vowing to enforce accountability under the Petroleum Industry Act (PIA).
The House Committee emphasized its commitment to ensuring compliance with statutory payment obligations. It reiterated that oil companies benefiting from Nigeria’s natural resources must fulfill their financial responsibilities to support national development.
“The necessary legislative measures will be taken to enforce compliance and safeguard public revenue,” the statement affirmed.
