The House of Representatives’ Public Accounts Committee (PAC) has formed two sub-committees to examine the outstanding debts of the Nigerian National Petroleum Company Limited (NNPCL) and other entities in the oil and gas sector to the Federation Account.
The committees, announced on Monday, are also tasked with reviewing Remitta records held by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to trace financial inflows and address discrepancies flagged in audit reports.
Chairing the two sub-committees are Jeremiah Umaru of Nasarawa State and Olusola Fatoba of Ekiti State. Their investigations stem from queries in the Auditor-General’s 2021 consolidated financial statement, which highlighted unpaid royalties and unexplained deductions by NNPCL.
The Auditor-General’s report identified three primary issues: unpaid royalties from NNPCL-COMF MCA/PSC contracts totaling $253.95 million; unauthorized deductions by NNPCL amounting to over N204 billion; and further royalties on oil, gas, concession rentals, and gas flaring obligations yet to be remitted to the Federation Account, collectively valued at $2.26 billion and N48.2 billion.
Responding to the committee, NUPRC Chief Executive Officer Gbenga Komolafe disclosed that NNPCL had paid $224.3 million of its outstanding dues by the end of 2021, leaving $29.6 million unpaid.
“NUPRC has repeatedly issued demand notices to NNPCL and even reported the outstanding debt to the Honourable Minister of Finance,” Komolafe noted, explaining that their regulatory strategy includes imposing penalties in line with the Petroleum Industry Act (PIA) 2021.
During the session, PAC members sought assurances from NUPRC that all funds identified as unpaid by the Auditor-General’s office have been pursued for recovery. Committee Chairman Bamidele Salam emphasized that the hearings would remain fair, with a commitment to transparency in evaluating the Auditor-General’s queries and giving each party a chance to respond.
In his remarks, Salam stated, “As an investigative body, we are not here to declare anyone guilty without due process. Every party will be given a fair opportunity to address the issues openly.”
