Auditor General’s Report: Reps Investigate Outstanding Obligations Owed FG By NNPCL, NUPRC, Others
By Juliet Vincent
The House of Representatives Committee on Public Accounts has launched an investigation into outstanding debts owed to the Federation Account by the Nigerian National Petroleum Company Limited (NNPCL) and several oil companies.
The inquiry, led by the Sub-Committee Chairman, Hon. Akinlade Isiaq, followed concerns raised by the Office of the Auditor General for the Federation regarding financial obligations that remain unsettled by NNPC Ltd and various oil firms.
According to the Auditor General’s report, as of the end of 2021, NNPC Ltd and oil companies owed the Federation approximately $1.6 billion in royalties payable to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) under the Production Sharing Contract, Repayment Agreement, and Modified Carry Arrangement. Further findings indicate that NNPCL’s claims against the Federation stood at N1.9 trillion.
In response to the audit queries, NNPC’s Group Chief Executive Officer (GCEO), represented by Chief Financial Officer Mr. Dapo Segun, explained that part of the funds in question had been allocated to the government’s Priority Projects (GPP) and subsidy funding, which was sustained until its removal in September 2024.
He clarified that the deductions were made from the Federation’s crude oil and gas entitlements, including royalties, and were appropriated to various projects in line with the National Assembly-approved budget.
However, he emphasized that no deductions were made for GPP in 2023 and 2024, as these were contingent on the passage of the Petroleum Industry Act (PIA).
“Regarding the financial claims between the Federation and NNPC Limited as of December 31, 2024, the reconciliation process is ongoing under the supervision of the Honourable Minister of Finance and Coordinating Minister of the Economy. Once concluded, relevant reports will be made available to all appropriate agencies and stakeholders,” Mr. Segun stated.
Meanwhile, the Sub-Committee has vowed to continue its investigation into 2025, with the aim of determining the current status of the debts as of December 2024 and ensuring the recovery of outstanding funds.
In his remarks, Hon. Akinlade Isiaq reaffirmed the Sub-Committee’s commitment to professionalism and transparency, stating:
“This hearing is a crucial step toward ensuring that Nigeria’s oil and gas resources are properly accounted for. We are determined to take all necessary actions to recover these debts in the interest of the Federation and its citizens,” he said.
The Committee has also summoned oil companies indicted by the NUPRC report, which revealed that they collectively owed the Federal Government $929 million as of September 30, 2024.
To provide further clarity on the financial discrepancies, the Committee has invited key government agencies, including: Accountant General of the Federation, Central Bank of Nigeria (CBN) Nigeria Extractive Industries Transparency Initiative (NEITI), Ministry of Finance, Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Bureau of Public Procurement (BPP) and Federal Inland Revenue Service (FIRS).
These stakeholders are expected to provide insight into the legal and procedural aspects surrounding the non-payment of these funds. The investigation is expected to set a precedent for greater accountability and financial transparency within Nigeria’s oil and gas sector.
