Unremitted Funds: Oil Companies Owe Federation Account N9.4 Trillion

By Ayodele Oni

The House of Representatives Committee on Public Accounts, will, on Monday, begin investigative hearings aimed at addressing outstanding debts owed by oil companies to the Federation Account.

This initiative is in compliance with the Committee’s constitutional mandate under Sections 85, 88, and 89 of the Constitution of the Federal Republic of Nigeria 1999 (as amended), as well as Order XX – Rule 6 of the House of Representatives Standing Orders (eleventh edition).

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, oil companies owe a combined total of approximately ₦9.4 trillion. 

Spokesman of the green chamber, Akin Rotimi in a statement on Sunday, explained that “This amount covers unpaid royalties, concession rentals, and gas flare penalties.

“This is in addition to obligations arising from Production Sharing Contracts, Repayment Agreements, and Modified Carry Arrangements. 

“Despite the clear provisions of the Petroleum Industry Act – which require such debts to be settled within 30 days – many of these liabilities have remained unsettled since 2021.

“In light of these findings, the Public Accounts Committee hereby invites the oil companies to submit the previously requested documents and appear before the Committee.”

According to the Chairman of the House Committee on Public Accounts, Bamidele Salam “Oil companies must fulfill their statutory obligations to maintain the integrity and accountability of our nation’s resources. 

“We welcome a collaborative approach with all stakeholders as we work together to address these discrepancies in an effective and efficient manner.

“The affected organisations have been duly notified, and this public notice is for the public records, and in line with our commitment to an open parliament that is transparent and accountable.”