The House of Representatives Committee on Public Accounts has launched an investigation into the alleged non-remittance of $1.6 billion in royalties by the Nigerian National Petroleum Company Limited (NNPCL) to the federation account.
The probe, led by Sub-Committee Chairman Hon. Akinlade Isiaq, follows concerns raised in the Auditor-General for the Federation’s report, which flagged significant financial discrepancies related to oil companies’ payments under the Production Sharing Contract, Repayment Agreement, and Modified Carry Arrangement.
According to the report, as of 2021, the NNPCL and oil companies owed the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) $1.6 billion in unpaid royalties, while NNPCL’s overall financial claims against the federation had reportedly reached N1.9 trillion.
During the hearing, NNPCL’s Chief Financial Officer, Dapo Segun, explained that some of the funds in question had been allocated to government priority projects and subsidy funding until September 2024. He further noted that deductions for the Government’s Priority Projects (GPP) ceased in 2023 following the passage of the Petroleum Industry Act (PIA).
The House Committee has vowed to ensure full accountability, stating that the investigation will continue into 2025 to recover any outstanding debts. Hon. Akinlade Isiaq reaffirmed the subcommittee’s commitment to transparency, stating, “We are determined to ensure Nigeria’s oil resources are properly accounted for and that all outstanding funds are recovered in the interest of the nation.”
The investigation has also extended invitations to key stakeholders, including the Central Bank of Nigeria (CBN), the Ministry of Finance, the Nigeria Extractive Industries Transparency Initiative (NEITI), and the Federal Inland Revenue Service (FIRS), to provide further clarifications on the financial discrepancies.
