The House of Representatives Public Accounts Committee has launched an investigation into ₦432.07bn in outstanding regulatory debts owed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, by the Nigerian National Petroleum Company Limited, NNPCL and other oil companies.
The probe follows findings in the Auditor-General’s annual audit reports on unpaid petroleum-related obligations, with some of the liabilities dating back to 2017.
The committee is seeking to establish how the debts accrued, what has been recovered and why significant amounts remain outstanding.
The Auditor-General’s 2023 Annual Audit Report put the combined indebtedness of NNPCL and oil companies at ₦392.73bn.
Of the amount, NNPCL accounted for ₦162.46bn, while 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 ₦230.27bn.
The liabilities were linked to balancing allowance, National Transport Average, the one per cent Midstream and Downstream Gas Infrastructure Fund, as well as legacy obligations arising from importation, coastal and credit transactions.
The Auditor-General’s 2024 report subsequently put outstanding indebtedness at ₦432.07bn, excluding liabilities attributed to NNPCL.
Further submissions by the NMDPRA to the committee showed that 146 oil companies operating under DAPPMAN, MEMAN and MOMAN owed the authority ₦327.53bn as of 2025.
The committee said the outstanding obligations had accumulated over several years, raising concerns about the effectiveness of mechanisms used by the regulatory authority to assess, collect and recover the funds.
In a statement issued on Wednesday, the committee’s Chairman, Bamidele Salam, said the investigation was aimed at establishing the facts surrounding the outstanding liabilities and ensuring that all government revenue due from the affected entities was properly accounted for and recovered.
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He warned companies and institutions summoned by the committee against failing to appear with appropriate representatives and relevant records.
“Any company invited by this committee must respect the people’s parliament of the Federal Republic of Nigeria by honouring the summons with appropriate representation and all relevant documents.
We are not here to witch-hunt anybody; our responsibility is to establish the facts, protect public revenue and ensure that every naira due to government is properly accounted for,” Salam said.
The committee is expected to examine the basis on which the debts were assessed, the periods covered, payments made by the affected companies, outstanding balances and steps taken by the NMDPRA to recover the funds.
It will also seek explanations on why liabilities accumulated over several years remained unpaid and whether enforcement measures were deployed against defaulting companies.
The investigation comes amid heightened scrutiny of revenue generation, collection and remittance in Nigeria’s petroleum industry following the implementation of the Petroleum Industry Act, which overhauled the legal and regulatory framework governing the sector.
The NMDPRA was established under the PIA to regulate Nigeria’s midstream and downstream petroleum operations.
Its responsibilities include the regulation of petroleum product processing, transportation and distribution, domestic gas operations, infrastructure and other activities within the midstream and downstream segments.
The committee said the inquiry was part of the National Assembly’s constitutional oversight responsibility and was not intended to target any particular company or institution.
Salam said lawmakers would require the affected entities and the regulatory authority to account for the outstanding obligations and submit the documentation needed to determine how the debts arose, what had been recovered and what remained unpaid.
The committee reaffirmed that it would use its oversight powers to ensure that public revenue was properly accounted for and that agencies responsible for collection took effective steps to recover outstanding liabilities.
PUNCH
