Reps Panel to Hold NNPC and Oil Firms Responsible for ₦432bn Debt

The Public Accounts Committee of the House of Representatives has promised to make the Nigerian National Petroleum Company Limited and other oil companies answer for the ₦432 billion they allegedly owe. This money is owed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

The committee plans to investigate how these debts came about. They will ask the companies involved to provide the necessary documents and information.

Bamidele Salam, the committee chairman, shared this in a statement on Wednesday. He announced the start of the committee’s sittings.

Mr Salam called on all relevant authorities and companies to come before the committee with the needed documents.

"The Committee will make sure that all relevant entities account for their obligations and provide the necessary records. This will help Parliament understand the situation around the outstanding debts.

Any company invited by this Committee must respect the people’s Parliament of the Federal Republic of Nigeria. They should attend with proper representation and all necessary documents. We are not here to witch-hunt anybody. Our job is to establish the facts, protect public revenue and ensure that every naira due to the government is properly accounted for," he said.

N432bn Debt

The Punch reported on Monday that an analysis of the 2023 Auditor-General’s report showed that over ₦432 billion was unpaid to the NMDPRA during the year in question.

Besides NNPCL, other companies listed as owing include those under the Depot and Petroleum Products Marketers Association of Nigeria, the Major Marketers Association of Nigeria, and the Major Energy Marketers Association of Nigeria.

These debts came from several sources, including the Balancing Allowance, the National Transport Average, the 1 percent Midstream and Downstream Gas Infrastructure Fund, and older debts related to imports and transactions.

The breakdown of the 2023 figures revealed that NNPCL owed ₦162,456,750,832.47, while the oil companies owed ₦230,268,790,205.77. This totals ₦392,725,541,038.24.

However, the Auditor-General’s 2024 report showed that the debt grew to ₦432,072,557,867.17, not counting the debt of NNPCL.

Strengthening Accountability

The committee mentioned that they would review important records. This includes the reasons for the debts, the time period involved, payments made, amounts still due, and what steps the regulatory authorities took to get back the money.

Mr Salam stated that the investigation aims to improve how public funds are managed. He wants to make sure that money owed to government agencies is collected properly.

He confirmed the committee’s promise to use its constitutional powers. They will ensure that public revenue is accounted for and that government agencies act to recover the money owed.