Seven oil companies have pledged to transfer $37.4 million (about ₦58 billion) to Nigeria’s Federation Account by August 2025.
This pledge emerged from an ongoing investigation by the Public Accounts Committee (PAC) of the House of Representatives, which scrutinized financial records from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The audit revealed substantial lapses in royalty payments and reconciliation processes across the industry.
The companies acknowledging their debts and agreeing to settle them before the stipulated deadline are:
- Belema Oil
- Panocean Oil Nigeria Ltd
- Newcross Exploration & Production Ltd
- Dubri Oil Company Ltd
- Chorus Energy
- Amni International
- Network Exploration
This commitment is part of a broader effort to address an outstanding liability of approximately ₦9 trillion, as highlighted in the Auditor General’s 2021 report submitted to the National Assembly. Some of these debts have accumulated over four years, underscoring longstanding revenue leakages in the sector.
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Beyond these seven companies, the PAC’s investigation uncovered that 45 oil and gas companies owe a combined $1.7 billion (₦2.5 trillion) in unpaid royalty payments as of December 31, 2024.
Notably, nine companies, with a combined outstanding balance of $429.2 million, have contested the figures and requested a reconciliation process with the NUPRC to verify their actual liabilities. Also, 28 companies, collectively owing $1.23 billion, failed to honor invitations by the committee or respond to public notices of which the commission had granted a one week grace.
The only two companies found to have fully met their royalty obligations are:
- Shell Petroleum Development Company (SPDC)
- Shell Nigeria Exploration & Production
The PAC’s findings have significant implications for Nigeria’s economy. The recovery of these outstanding funds is crucial for bolstering the nation’s revenue base, especially in a sector as vital as oil and gas. Ensuring that companies adhere to their financial obligations not only enhances fiscal stability but also fosters a culture of accountability and transparency. This, in turn, can lead to improved public trust and encourage further investments in the sector.
