The House of Representatives on Wednesday expressed grave concern over oil companies indebtedness to the Federation Account to the tune of N9.4 trillion as a Q4 2024.
The outstanding revenue, according to the audit report obtained from the office of the Auditor General of the Federation (oAuGF) systems from unpaid oil royalties, concession rentals, gas flare penalties, and other contractual obligations under Production Sharing Contracts (PSCs), Repayment Agreements, and Modified Carry Arrangements.
So far, the House Committee on Public Accounts has confirmed the recovery of N86.5 billion oin il revenue owed by some of the oil companies operating in Nigeria.
Chairman, House Committee on Public Accounts, Rep. Bamidele Salam ,who disclosed this in Abuja, however ,issued a strong warning to 13 non-compliant oil companies that own cumulative sum of $456,952,216.51 (N731,123,546,416).
Rep. Salam who threatened that the Committee is left with no option than to impose constitutional sanctions over their persistent failure to respond to official summons and invitations, lamented that: “Despite repeated invitations and public notices through national newspapers, the listed companies have failed to appear before the Committee, prompting the PAC to consider punitive actions in line with legislative and constitutional provisions.
“List of Non-Compliant Oil Companies and Alleged Liabilities amounting to $456,952,216.51 (₦731,123,546,416):
“Conoil Producing Ltd. ($5 million); Continental Oil & Gas Ltd. ($57 million); Energia Ltd. ($19.5 million); Frontier OML 13 ($952,216.51); Millennium Oil & Gas Ltd. ($2.067 million); Neconde Energy Ltd. ($325.7 million); Pillar Oil Ltd. ($4.6 million); Waltersmith OML 16 ($8.7 million); Aiteo Ltd. ($34.8 million); Bilton ($5 million); Heirs Holdings ($137.7 million); General Hydrocarbon Ltd. ($22.5 million) and Eroton ($34.5 million).
In the bid to grant the affected company, he disclosed that Cthe ommittee has scheduled the aforementioned companies to appear without fail on Wednesday, July 2, and Thursday, July 3, 2025.
In the same vein, the Committee also requested the following oil companies to reappear before the Committee, in connection with alleged outstanding liabilities totaling $125.5 million
The are: OML 18 ($15.2 million); Shoreline ($70 million); Network Exploration ($2.6 million); Aradel ($8.2 million); Newcross Exploration ($25 million) and Pan Ocean ($4.5 million).
While giving an update on the outcomes of the Committee’s intervention, Rep. Salam said: “Recalcitrant companies will face the constitutional consequences of their refusal to cooperate. We are fully committed to enforcing accountability and recovering all funds owed to the Nigerian people.”
The warning comes as the Committee announced the recovery of an additional $15.7 million (approximately ₦25 billion) from several oil companies, raising the total recovered amount to ₦86.5 billion.
This follows a comprehensive review of the Auditor-General’s Annual Report on the Consolidated Financial Statements for the year ended December 31, 2021.
The Committee’s investigations revealed that oil and gas companies owe the Federation Account approximately ₦9.4 trillion as of Q4 2024, stemming from unpaid oil royalties, concession rentals, gas flare penalties, and other contractual obligations under Production Sharing Contracts (PSCs), Repayment Agreements, and Modified Carry Arrangements.
Latest Recoveries amounting to $15.7 million (approximately ₦25 billion): TotalEnergies ($2 million); Shoreline Natural Resources ($10 million); OML 18 Resources ($3,474,123) and Enageed Resource Ltd. ($280,000).
These funds have been remitted directly into the Federation Account and are considered a critical step in reinforcing fiscal responsibility within Nigeria’s extractive sector.
The House of Representatives assures Nigerians of its unwavering commitment to accountability, transparency, and the diligent protection of public resources in the national interest.
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