The House of Representatives Public Accounts Committee, PAC, has commenced an investigation into outstanding oil revenue debt owed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, by the Nigerian National Petroleum Company Limited, NNPCL, and oil companies.
The liabilities under investigation have been put at N432.07 billion. The probe followed findings contained in the Auditor-General’s annual audit reports concerning unpaid regulatory and petroleum-related obligations.
According to the Auditor-General’s 2023 Annual Audit Report, NNPCL and oil companies operating under the Depot and Petroleum Products Marketers Association of Nigeria, DAPPMAN, Major Marketers Association of Nigeria, MOMAN, and Major Energy Marketers Association of Nigeria, MEMAN, owed NMDPRA N392.73 billion.
The report attributed the liabilities to Balancing Allowance, National Transport Average and the one per cent Midstream and Downstream Gas Infrastructure Fund. It also identified legacy debts linked to imports, coastal transactions and credit transactions.
A breakdown of the 2023 figure showed that NNPCL accounted for N162.46 billion, while the affected oil companies owed N230.27 billion. The combined liability therefore stood at N392.73 billion.
However, the Auditor-General’s 2024 report placed the outstanding indebtedness at N432.07 billion, excluding NNPCL’s liability. Further submissions made by NMDPRA to the Public Accounts Committee showed that 146 oil companies operating under DAPPMAN, MEMAN and MOMAN owed the authority N327.53 billion as of 2025.
The committee noted that the outstanding obligations covered the period from 2017 to 2023 and had largely remained unpaid when the review was conducted. It is expected to examine the records surrounding the liabilities and establish the circumstances behind the accumulation of the debts.
Chairman of the committee, Rep. Bamidele Salam, said the panel would ensure that all entities involved accounted for their obligations. He added that the affected organisations would be required to provide records needed to enable Parliament establish the circumstances surrounding the outstanding liabilities.
Salam also warned companies and institutions summoned by the committee against disregarding parliamentary invitations. He said any company invited by the committee must honour the summons with appropriate representation and all relevant documents.
The lawmaker said the committee was not investigating the companies to witch-hunt them, but to establish the facts and protect public revenue. He stressed that every naira due to government must be properly accounted for.
According to Salam, the committee will scrutinise records covering the basis of the liabilities, the periods involved, payments already made and outstanding balances. It will also examine measures taken by the regulatory authorities to recover the funds.
He said the investigation was designed to strengthen accountability in the management of public revenue. It would also help prevent statutory obligations owed to government agencies from accumulating without effective recovery measures.
The Public Accounts Committee reaffirmed its commitment to exercising its constitutional oversight mandate. It also stressed the need for government agencies to properly account for public revenues and take appropriate steps to recover outstanding liabilities.
