The House of Representatives Committee on Public Accounts has initiated a probe into outstanding debts owed to the Federation Account by the Nigerian National Petroleum Company Limited (NNPCL) and several oil firms.

This investigation follows concerns raised by the Office of the Auditor General for the Federation regarding unsettled financial obligations by NNPCL and its industry counterparts.

According to the Auditor General’s 2021 report, NNPCL and oil companies owed approximately $1.6 billion in unpaid royalties to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). These debts stem from various agreements, including the Production Sharing Contract, Repayment Agreement, and Modified Carry Arrangement. Additionally, NNPCL’s claims against the Federation reportedly stood at N1.9 trillion.

Responding to the inquiry, NNPCL’s Group Chief Executive Officer (GCEO), represented by Chief Financial Officer Mr. Dapo Segun, explained that part of the funds in question had been allocated to the government’s Priority Projects (GPP) and subsidy funding, which was in effect until its removal in September 2024. Segun further clarified that deductions were made from the Federation’s crude oil and gas entitlements, including royalties, and were distributed across various projects as approved by the National Assembly.

Meanwhile, the House Sub-Committee, chaired by Mr. Akinlade Isiaq, has vowed to extend its investigation into 2025 to determine the current status of the debts and ensure the recovery of outstanding funds. Isiaq reaffirmed the Sub-Committee’s commitment to transparency and professionalism.

In addition to probing NNPCL, the committee has summoned oil companies implicated in the NUPRC report, which revealed that as of September 30, 2024, these firms collectively owed the Federal Government $929 million.

The investigation underscores the government’s determination to recover public funds and enforce financial accountability within Nigeria’s oil and gas sector.