Seven oil companies operating in Nigeria’s oil and gas sector have agreed to pay a total of $37,435,094.52 (approximately N58 billion) to the Federation Account before August 2025, acknowledging their outstanding debt. This was disclosed in a statement by Rep. Akin Rotimi Jr., Spokesman of the House of Representatives, as part of the Public Accounts Committee’s ongoing investigation into the sector’s financial obligations.
Earlier, the House of Representatives had summoned 48 oil companies over a combined outstanding debt of N9.4 trillion in unpaid royalties, concession rentals, gas flare penalties, and obligations arising from Production Sharing Contracts, Repayment Agreements, and Modified Carry Arrangements.
Oil Firms That Have Agreed to Settle Their Debts
The following companies have acknowledged their debts and committed to settling them before August 2025:
•Belema Oil
•Pan Ocean Oil Nigeria Ltd
•Newcross Exploration & Production Ltd
•Dubri Oil Company Ltd
•Chorus Energy
•Amni International
•Network Exploration
The commitment follows a review of financial records by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which identified significant gaps in royalty payments and reconciliation processes.
Additional N2.5 Trillion in Unpaid Royalties Identified
Beyond these seven companies, the committee discovered that 45 other oil firms owe an additional $1.7 billion (N2.5 trillion) in unpaid royalty payments as of December 31, 2024.
Companies That Disputed Their Liabilities
Nine companies, with a combined outstanding balance of $429.2 million, have contested the figures and requested a reconciliation process with NUPRC to verify their actual liabilities. These companies include:
1.Aradel/Niger Delta
2.Chevron Nigeria Ltd
3.STAR DEEP
4.Shoreline
5.Seplat Producing Unlimited
6.Esso Erha
7.Esso Usan
8.Eroton Exploration
9.Seplat Energy
The House Committee on Public Accounts has directed that the reconciliation process be completed within two weeks, after which the affected companies must settle their confirmed debts immediately.
28 Oil Companies Fail to Honor House Summons
A total of 28 oil companies, with a combined debt of $1.23 billion, have failed to appear before the committee or respond to public notices. The committee granted them a final grace period of one week to provide the necessary documentation regarding their financial obligations or face legislative and regulatory sanctions.
The companies in default include:
•Addax Petroleum Exploration Nigeria Ltd
•AITEO Group
•Total E&P Nigeria (OML 100, 102, 52 & 99)
•Oando Oil Ltd (OML 60, 61 & 62)
•Nigeria Petroleum Development Company (NPDC) – OML 60, 61 & 63
•Heirs Holdings
•Neconde Energy Limited
•Oriental Energy Resources Limited
•Conoil Plc
•Sahara Field Production Limited
…and 18 others.
Companies That Fully Met Their Royalty Obligations
Only two companies were found to be fully compliant with their statutory financial obligations:
•Shell Petroleum Development Company (SPDC)
•Shell Nigeria Exploration & Production
House of Representatives Vows to Enforce Compliance
The House of Representatives reaffirmed its commitment to enforcing compliance within Nigeria’s oil and gas industry, ensuring that companies benefiting from the nation’s natural resources meet their financial obligations. The Committee on Public Accounts stated that it will intensify oversight efforts to recover all outstanding revenues and plug financial leakages in the sector.
“The committee will continue to monitor developments and take firm legislative actions where necessary to ensure accountability and compliance,” the statement read.
