The House of Representatives has announced that seven major oil and gas operators in Nigeria have agreed to pay a total of $37,435,094.52 (approximately N58 billion) into the federation account before August 2025. This pledge follows an investigation led by the Public Accounts Committee of the Green Chamber.
In a statement issued by Akin Rotimi, spokesperson for the House, it was revealed that this decision came after a thorough examination of financial records from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which uncovered significant discrepancies in royalty payments and the reconciliation processes within the sector.
Rotimi explained that the agreed repayment is part of a larger N9 trillion liability highlighted by the Auditor-General for the Federation in a 2021 report presented to the National Assembly. He emphasized that some of the debts have been outstanding for more than four years, underscoring the persistent revenue leakages in Nigeria’s oil and gas industry.
The companies involved have acknowledged their debts and have committed to settling them by August 2025.
Furthermore, the investigation uncovered that 45 oil and gas firms owe $1.7 billion (N2.5 trillion) in unpaid royalties as of December 31, 2024. Nine of these companies, which collectively owe $429.2 million, have contested the reported figures and requested a reconciliation process with NUPRC to verify their exact liabilities. These companies include Aradel/Niger Delta, Chevron, STAR DEEP, Shore Line, Seplat Producing Unlimited, Esso Erha, Esso Usan, Eroton Exploration, and Seplat Energy.
The committee has directed that the reconciliation process be concluded within two weeks, after which the companies will be required to settle any verified debts promptly.
Additionally, 28 companies with a combined debt of $1,230,708,293.14 have failed to respond to public notices or comply with the committee’s invitations. These companies include Addax Petroleum Exploration Nigeria Ltd, AITEO Group, Total E&P Nigeria, and others.
The committee has given these companies a one-week grace period to submit all necessary documentation concerning their statutory obligations and appear before the committee. Rotimi warned that failure to comply within the given timeframe would result in strict legislative and regulatory sanctions to ensure accountability.
Currently, only two companies—Shell Petroleum Development Company (SPDC) and Shell Nigeria Exploration and Production—have fully met their royalty payment obligations.
The committee reaffirmed its commitment to ensuring that all oil and gas companies operating in Nigeria adhere to their statutory payment responsibilities under the Petroleum Industry Act (PIA). It also vowed to increase oversight efforts to recover outstanding revenues and address revenue leakages in the sector.