By Mercy Aikoye
The House of Representatives Committee on Public Accounts has initiated an inquiry into the Nigerian National Petroleum Company Limited (NNPCL) and several oil firms regarding their unsettled financial obligations to the Federation Account. This move follows a damning report by the Office of the Auditor General for the Federation, which exposed significant financial discrepancies.
According to the Auditor General’s report, as of December 2021, NNPCL and oil companies owed the Federation a staggering sum of approximately $1.6 billion in unpaid royalties to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). This revelation has sparked widespread concern and prompted lawmakers to take action.
In a bid to clarify the situation, NNPCL’s Group Chief Executive Officer (GCEO) appeared before the Committee, represented by Chief Financial Officer Mr. Dapo Segun. Segun attributed part of the unpaid dues to allocations for the government’s Priority Projects (GPP) and subsidy funding. However, he emphasized that no deductions were made for GPP in 2023 and 2024, as these were contingent on the passage of the Petroleum Industry Act (PIA).
The lawmakers expressed skepticism regarding NNPCL’s claims, citing the need for greater transparency and accountability. The Committee has vowed to continue its investigation into 2025, aiming to determine the current status of the debts as of December 2024 and ensure the recovery of outstanding funds.
To facilitate a comprehensive probe, the Committee has summoned oil companies implicated in the NUPRC report, which revealed that they collectively owed the Federal Government $929 million as of September 30, 2024. Key government agencies, including the Accountant General of the Federation, Central Bank of Nigeria (CBN), and Federal Inland Revenue Service (FIRS), have also been invited to provide insight into the legal and procedural aspects surrounding the non-payment of these funds.
The investigation is expected to set a precedent for greater accountability and financial transparency within Nigeria’s oil and gas sector. By recovering outstanding debts and ensuring transparency, the government aims to promote a more equitable and sustainable management of the country’s natural resources.
As the probe unfolds, the House of Representatives Committee on Public Accounts remains committed to ensuring that Nigeria’s oil and gas resources are properly accounted for, and that those responsible for unsettled debts are held accountable. The lawmakers are determined to leave no stone unturned in their quest for transparency and accountability.
The outcome of this investigation is eagerly anticipated, as it is expected to have far-reaching implications for the oil and gas sector in Nigeria. As the country strives to promote transparency and accountability, this probe serves as a crucial step towards achieving these goals.
