Audit probe: Reps recover N28.7bn outstanding revenues from oil companies

The House of Representatives through its Public Accounts Committee (PAC) has recovered outstanding revenues of $19,241,109.35 (approximately ₦28.7 billion) from two oil companies indebted to the Federation Account within one week. The committee’s investigation, which is based on findings from the 2021 Audit Report, focuses on 45 oil companies collectively owing $1.7 billion in outstanding […]

The House of Representatives through its Public Accounts Committee (PAC) has recovered outstanding revenues of $19,241,109.35 (approximately ₦28.7 billion) from two oil companies indebted to the Federation Account within one week.

The committee’s investigation, which is based on findings from the 2021 Audit Report, focuses on 45 oil companies collectively owing $1.7 billion in outstanding liabilities to the federation.

This was contained in a statement issued on Sunday by the spokesman of the House, Akin Rotimi.

According to the statement, Chorus Energy Limited settled its outstanding liability with a payment of $847,623 (₦1.2 billion) on March 11, 2025.

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On its part, Seplat Production Development Limited fully discharged its obligation by remitting $18.39 million (₦27.6 billion) between March 10 and March 14, 2025.

The statement noted that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been furnished with evidence of these payments for final verification.

“Additionally, Shoreline Natural Resources Ltd. had made a $30 million payment towards its $100.28 million debt before the investigation commenced and has requested a structured repayment plan for the outstanding balance,” the statement added.

During the Public Account Committee’s proceedings, a representative of the NUPRC, Balarabe Haruna, reported that following recent reconciliations, Seplat Energy Producing Nigeria Unlimited (formerly Mobil Producing) now holds a credit balance of $211,911.09 for crude oil royalty, $33.01 million for gas flare penalties, and $163,046.40 for concession rentals, with no outstanding liabilities.

The committee commended Seplat Energy for its prompt compliance with its financial obligations.

Furthermore, the committee reaffirmed its commitment to deploying all constitutional measures to recover outstanding debts from the remaining 38 oil companies under investigation.

The statement further highlighted that four companies—Amalgamated Oil Company Nigeria Ltd, Seplat Energy, Shell Exploration and Production, and Shell Petroleum Development Company—had fully settled their obligations and are no longer financially liable.

 

Recovers another ₦199.3m from Remita investigation

In a separate development, the House Committee on Public Accounts has successfully recovered ₦199.3 million out of an outstanding ₦6.8 billion, comprising excessive charges levied between March and October 2015 and unremitted Value Added Tax (VAT) on transactions processed via the Remita platform from 2015 to 2022.

The House of Representatives had, in 2024, mandated the Committee to investigate revenue leakages and non-remittance of funds by Ministries, Departments, and Agencies (MDAs) through Remita.

This directive followed a motion sponsored by Hon. Jeremiah Umaru, which was subsequently referred to the Committee.

According to the statement, the Federal Government had previously directed value chain providers, including banks, Remita, and the Central Bank of Nigeria (CBN), to refund 1% transaction charges collected via Remita between March and October 2015.

An audit of records from banks and Remita however revealed that while ₦7,626,503,441.42 had been refunded, an outstanding sum of ₦1,984,355,431.08 remained unpaid.

Applying the prevailing Monetary Policy Rate (MPR) of 27.25%, the accumulated interest on the unpaid sum amounts to ₦4,842,928,161.36, bringing the total refundable amount to ₦6,827,283,592.44.

The Committee, according to the statement, confirmed that on March 13, 2025, Guaranty Trust Bank (GTB) settled ₦40.6 million in overdue charges for the period between March and October 2015.

It noted that further investigations uncovered non-remittance of VAT on transactions processed via Remita. The CBN had acknowledged an outstanding VAT liability of ₦521,765,134.17 for transactions between November 2018 and April 2024, which remains unsettled.

The statement noted that following the Committee’s intervention, Zenith Bank remitted ₦126,131,692.86. while Guaranty Trust Bank paid ₦32,585,882.48.

The statement noted that despite these recoveries, several other value chain providers are yet to comply with VAT remittance requirements and other under-remittances identified in the investigation.

Meanwhile, the chairman of the House Public Accounts Committee, Rep. Bamidele Salam, reaffirmed the committee’s resolve to pursue every avenue to recover public funds.

“These recoveries demonstrate the effectiveness of the oversight function of the National Assembly in ensuring accountability and transparency in the management of public funds. We will continue to engage with relevant institutions and deploy all necessary legislative tools to recover outstanding debts and prevent revenue leakages. Our objective is to ensure that every kobo due to the Federation is accounted for and remitted accordingly,” he said.

Salem said the House of Representatives through the Public Accounts Committee remains committed to upholding financial discipline, strengthening institutional accountability, and safeguarding public resources in the national interest.