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The House of Representatives has summoned 48 oil companies over their alleged failure to remit approximately N9.4 trillion in outstanding debts to the federation account.
In a statement, yesterday, Akin Rotimi, spokesperson of the House, said the debts were related to unpaid royalties, concession rentals, gas flare penalties, and obligations from production sharing contracts.
During the review of the Auditor-General’s Annual Report on the Consolidated Financial Statement for the year ended December 31, 2021 and following further in-depth investigations, it was revealed that, as of the last quarter of 2024, several oil companies owe a combined total of approximately N9.4 trillion.
“This amount covers unpaid royalties, concession rentals, and gas flare penalties, in addition to obligations arising from Production Sharing Contracts, Repayment Agreements, and Modified Carry Arrangements.”
Rotimi said further investigations revealed that the debts remained unpaid as of the last quarter of 2024, despite the Petroleum Industry Act (PIA) mandating settlement within 30 days.
The invitation was issued by the house committee on public accounts, chaired by Bamidele Salam, following a review of the auditor-general’s annual report on the consolidated financial statement for the year ended December 31, 2021.
According to the house of representatives, the investigative hearings will be held from March 3 to March 7 at the national assembly complex, Abuja.
“Oil companies must fulfill their statutory obligations to maintain the integrity and accountability of our nation’s resources,” Salam said.
“We welcome a collaborative approach with all stakeholders as we work together to address these discrepancies in an effective and efficient manner.”
