HOUSE OF REPS INVESTIGATES NNPCL’S UNPAID DEBTS TO FG’S ACCOUNT
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The House of Representatives Public Accounts Committee has launched an investigation into the outstanding debts owed to the Federation Account by the Nigerian National Petroleum Company Limited (NNPCL) and other oil companies.
The inquiry, led by Akinlade Isiaq, Chairman of the sub-committee, follows concerns raised by the Office of the Auditor-General for the Federation over NNPCL’s financial obligations. The report highlighted that, as of the end of 2021, NNPCL and several other oil companies owed a total of $1.6 billion in royalties to the Nigerian Upstream Petroleum Regulatory Commission. The debt stems from agreements under the Production Sharing Contract, Repayment Agreement, and Modified Carry Arrangement.
In response to the allegations, NNPCL Group Chief Executive Officer, Mele Kyari, represented by the company’s Chief Financial Officer, Dapo Segun, explained that a portion of the disputed funds had been used to finance government priority projects and subsidies. Segun assured the committee that once the reconciliation process is complete, the relevant reports will be shared with appropriate agencies and stakeholders.
The sub-committee is determined to continue its investigation to assess the current status of the debts as of December 2024 and ensure that the outstanding funds are recovered. The investigation is set to extend into 2025, with the goal of preventing further financial mismanagement within the sector.
Isiaq emphasized the committee’s commitment to professionalism and transparency, stressing the importance of the investigation in ensuring proper accountability for Nigeria’s oil and gas resources. “We are committed to taking all necessary actions to recover these debts in the interest of the Federation and its citizens,” he said.
Key stakeholders, including the Accountant-General of the Federation, the Central Bank of Nigeria, the Nigeria Extractive Industries Transparency Initiative, the Ministry of Finance, the Revenue Mobilisation Allocation and Fiscal Commission, the Bureau of Public Procurement, and the Federal Inland Revenue Service, have been invited to provide clarification on the financial discrepancies.
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