The House of Representatives has ordered the presence of 48 oil companies over alleged failure to remit roughly N9.4 trillion in outstanding debts to the federation account.
Spokesperson of the House, Akin Rotimi, in a statement, said the debts are related to unpaid royalties, concession rentals, gas flare penalties, and obligations from production sharing contracts, despite the Petroleum Industry Act (PIA) mandating settlement within 30 days.
“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.”
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”.
Each company is expected to be represented by its Chief Executive Officer and any officer well-versed in the issues under investigation.
The lower chamber warned that failure to appear would result in further action against the defaulting companies.
