REVENUE RECOVERY:
Reps Launch Probe Into ₦432bn Oil Debt
The House of Representatives Public Accounts Committee (PAC) has commenced investigation into the outstanding indebtedness of oil companies and the Nigerian National Petroleum Company Limited (NNPCL) to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), with the liabilities rising to N432bn.
The investigation follows findings contained in the Auditor-General’s annual audit reports on the indebtedness arising from various regulatory and petroleum-related obligations.
According to the Auditor-General’s 2023 Annual Audit Report, the NNPCL and oil companies operating under the umbrella of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Major Marketers Association of Nigeria (MOMAN) and Major Energy Marketers Association of Nigeria (MEMAN) were indebted to NMDPRA to the tune of ₦393bn.
The report indicated that the debt comprised obligations arising from Balancing Allowance, National Transport Average, 1% Midstream and Downstream Gas Infrastructure Fund, as well as legacy debts associated with imports, coastal and credit transactions.
A breakdown of the 2023 figures showed that NNPCL owed ₦162,456,750,832.47, while the oil companies owed ₦230,268,790,205.77, bringing the combined indebtedness to ₦392,725,541,038.24.
However, the Auditor-General’s 2024 report indicated that the outstanding debt had increased to ₦432,072,557,867.17, excluding the indebtedness of NNPCL.
Further review of submissions made by the NMDPRA to the Public Accounts Committee showed that 146 oil companies operating under DAPPMAN, MEMAN and MOMAN owed the Authority ₦327,525,987,255.67 as at 2025.
Chairman of the Committee, 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.
Salam stressed that companies and institutions summoned by the Committee must accord the National Assembly the respect it deserves by responding appropriately to parliamentary invitations.
