REPS INVESTIGATE NNPCL, OIL FIRMS OVER N432BN OUTSTANDING NMDPRA DEBTS
Read Time:2 Minute, 43 Second
By; Sunmola Ganiyat
The House of Representatives Public Accounts Committee has commenced an investigation into outstanding regulatory debts owed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority by the Nigerian National Petroleum Company Limited and several oil companies.
The liabilities under investigation have been put at N432.07 billion, following concerns raised in the Auditor-General’s annual audit reports over unpaid petroleum-related obligations.
The Auditor-General’s 2023 Annual Audit Report had estimated the combined debt owed by NNPCL and oil companies at N392.73 billion.
Of the figure, NNPCL was responsible for N162.46 billion, while companies operating under the Depot and Petroleum Products Marketers Association of Nigeria, Major Marketers Association of Nigeria and Major Energy Marketers Association of Nigeria accounted for N230.27 billion.
The outstanding obligations were linked to various regulatory payments, including Balancing Allowance, National Transport Average, the one per cent Midstream and Downstream Gas Infrastructure Fund, as well as legacy liabilities arising from importation, coastal and credit transactions.
The Auditor-General’s 2024 report later put the outstanding indebtedness at N432.07 billion, excluding liabilities attributed to NNPCL.
Further submissions by the NMDPRA to the committee indicated that 146 oil companies operating under DAPPMAN, MEMAN and MOMAN owed the regulatory authority N327.53 billion as of 2025.
The committee noted that some of the debts had accumulated over several years, with certain obligations dating as far back as 2017. This, it said, had raised questions about the effectiveness of the mechanisms employed by the regulator to assess, collect and recover the funds.
Chairman of the committee, Bamidele Salam, said the investigation was designed to establish the facts surrounding the outstanding liabilities and ensure that all revenues due to the Federal Government were properly accounted for and recovered.
Salam warned companies and institutions summoned by the committee to appear with appropriate representatives and provide all relevant records.
He stressed that the investigation was not intended to witch-hunt any organisation but was aimed at protecting public revenue and ensuring accountability.
The committee is expected to scrutinise how the debts were assessed, the periods they covered, payments made by the affected companies, outstanding balances and measures taken by the NMDPRA to recover the funds.
Lawmakers will also investigate why some liabilities had remained unpaid for years and determine whether adequate enforcement measures were taken against defaulting companies.
The probe comes amid increased scrutiny of revenue collection and remittance within Nigeria’s petroleum sector following the implementation of the Petroleum Industry Act, which introduced significant reforms to the industry’s regulatory framework.
The NMDPRA, established under the PIA, is responsible for regulating Nigeria’s midstream and downstream petroleum operations, including petroleum product processing, transportation, distribution, domestic gas activities and related infrastructure.
The committee said the investigation formed part of the National Assembly’s constitutional oversight responsibilities and was not targeted at any particular company or institution.
It added that the affected entities and the regulatory authority would be required to provide documents showing how the liabilities arose, the amounts recovered so far and the balances still outstanding.
The lawmakers reaffirmed their commitment to using their oversight powers to ensure proper accountability for government revenue and compel relevant agencies to take effective steps towards recovering outstanding public funds.
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
0 %
0
0