House of Reps Secures $37.43M Pledge from 7 Oil Firms Amid Royalty Payment Probe

The Nigerian House of Representatives has secured a $37.43 million commitment from seven oil firms as investigations into royalty payments continue.

The House of Representatives has obtained an agreement from seven oil and gas processing companies to contribute a total of $37.43 million (around ₦58 billion) to the Federation Account by August 2025.

This pledge comes in response to an ongoing investigation into the financial records of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which identified significant issues with royalty payments and reconciliation processes in the oil and gas industry.

This repayment is part of a broader ₦9 trillion outstanding liability highlighted by the Auditor General for the Federation in his 2021 report to the National Assembly.

The debts, some accumulating over four years, underscore persistent revenue losses in the oil and gas sector.

A statement released by Akin Rotimi, the House spokesman, on Sunday disclosed that PAC also discovered $1.7 billion (₦2.5 trillion) in unpaid royalties owed by 45 oil and gas companies as of December 31, 2024.

It announced that Belema Oil, Panocean Oil Nigeria Ltd, Newcross Exploration and Production Ltd, Dubri Oil Company Ltd., along with three other companies have recognized their outstanding debts totaling $37.43 million and agreed to settle them by August 2025.

Other companies include Chorus Energy, Amni International, and Network Exploration.

Nine companies, whose total outstanding balance amounts to $429.2 million, have challenged the figures and requested a reconciliation process with NUPRC to verify their true liabilities.

The companies in this category include Aradel/Niger Delta, Chevron, STAR DEEP, Shore Line, and Seplat Producing Unlimited.

Other companies include Esso Erha, Esso Usan, Eroton Exploration, and Seplat Energy.

The committee headed by Mr. Bamidele Salam has instructed that the reconciliation process be completed within two weeks, after which companies are required to promptly settle their confirmed debts.

In the meantime, a total of 28 companies that collectively owe $1.23 billion have either ignored invitations from the Committee or failed to respond to public notices.

The companies include Addax Petroleum Exploration Nigeria Ltd, AITEO Group, All Grace Energy, Amalgamated Oil Company Nigeria Limited, Total E&P Nigeria (OML 100, 102, 52 and 99), Bilton Energy Limited, and others.

Other companies in this category include Enageed Resources Limited, Waltersmith Petroman Limited, Conoil Plc, Continental Oil & Gas Company Ltd., and Energia Limited.

The committee has extended the deadline by an additional week for the affected companies to submit all relevant documentation concerning their statutory obligations and to appear before it.