N9.4trn unpaid revenue: Reps panel gives 8 oil coys 72hrs to appear
The ad hoc committee set up by the House of Representatives Public Accounts Committee (PAC) to investigate the N9.4 trillion owed the federal government by oil companies has given 72 hours to eight out of nine oil companies invited to appear before it on Monday or face the consequences. The ultimatum was given by the […]
The ad hoc committee set up by the House of Representatives Public Accounts Committee (PAC) to investigate the N9.4 trillion owed the federal government by oil companies has given 72 hours to eight out of nine oil companies invited to appear before it on Monday or face the consequences.
The ultimatum was given by the committee after eight of the nine companies invited failed to appear at the investigative hearing held on Monday with the exception of Belema Oil Producing Ltd whose team led by its Managing Director (MD), Ahmad H. Sambo.
The company’s team was, however, told to come back on Tuesday because of the late arrival of their documents to the committee.
The nine companies invited to appear on Monday include Addax Petroleum Exploration Nigeria Ltd; AITEO Group; All Grace Energy; Amalgamated Oil Company Nigeria Limited; and Amni International Petroleum Development Company Limited.
Others are Belema oil Producing Ltd; Bilton Energy Limited; Britannia-U and Waltersmith Petroman Limited.
The investigation was based on the Auditor General of the Federation’s (OAuGF) report submitted to the Public Accounts Committee (PAC); and the amount owed were unpaid royalties, concession rentals and gas flare penalties and other obligations arising from production sharing contracts, repayment agreements and modified carry arrangements.
It read in part, “The Oil Royalty amounting to US$1,742,280,008.32 (one billion, seven hundred and forty two million, two hundred and eighty thousand, eight dollars, thirty two cents) remained unpaid by some oil companies as at the end of December, 2021.
“The sum of US$13,805,135.46 (thirteen million, eight hundred and five thousand, one hundred and thirty five dollars, forty six cents) for revenue relating to Royalty on Gas Sales (Foreign) still remain outstanding as at 31 of December, 2021, while the sum of 848,218,163,192.67 (forty eight billion, two hundred and eighteen million, one hundred and sixty three thousand, one hundred and ninety two naira, sixty seven kobo) was in arrears for Gas Royalty (Local) for the same period.
“Twenty three operators also failed to pay the sum of US$496,674,967.77 (four hundred and ninety six million, six hundred and seventy four thousand, nine hundred and sixty seven dollars, seventy seven cents) being outstanding Federation Account revenue relating to Gas Flare Penalty, while the sum of US$7,688,880.90 (seven million six hundred and eighty eight thousand eight hundred and eighty thousand ninety cents)”.
In its submission, the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) represented by Balarabe Haruna gave a breakdown of the various sums owed by the individual companies as contained in the auditor general’s office report.
The total outstanding debts owed federal government by the companies was $506,565,187.96.
Giving the breakdown is as follows he stated that, “For Britannia-U OML, the company owes $1,062,417.03 for crude oil by price and $584,227.55 for crude oil by production, bringing the total to $1,646,644.58. Waltersmith OML 16 has a total debt of $8,739,281.20, which includes $2,844,273.48 for crude oil by price, $5,277,193.41 for crude oil by production, $372,078.31 for gas flares, and $245,736.00 for concession rentals.
“All Grace Energy OML 17 owes a total of $2,043,083.98, consisting of $812,804.88 for crude oil by price, $533,301.40 for crude oil by production, and $696,977.70 for gas flares.
Amni International Petroleum has an outstanding debt of $434,948,763.41, with $433,246,518.83 owed for crude oil by production, $1,668,090.00 for gas flares, and $34,154.58 for concession rentals.
“For Amalgamated Oil OML 156, the company’s debt includes $2,088.91 for concession rentals and $226,423.83 for gas sales, totaling $228,512.74. Belemaoil owes a total of $1,703,617.68, made up of $977,793.54 for crude oil by price, $511,870.14 for gas flares, and $213,954.00 for concession rentals.
“AITEO has a debt of $34,861,202.49, consisting of $27,197,780.87 for crude oil by price, $139,308.15 for gas sales, $7,381,653.47 for gas flares, and $142,460.00 for concession rentals. Addax Exploration OML 126 owes $17,575,991.14, with $17,447,255.24 for gas flares and $128,735.90 for concession rentals. Bilton owes a total of $5,044,514.57, made up of $4,123,850.60 for crude oil by price and $920,663.97 for gas flares”.
In his closing remarks, chairman of the ad-hoc committee, Hon. Tunji Olawuyi, berated the companies that failed to appear before it despite the invitation extended to them.
He said, “The committee in the exercise of its constitutional mandate wrote letters to the defaulting companies on the 28th of January 2025 to cause appearance on February 19th, 2025, but they all failed to honour the invitation.
“Also, this committee made a publication on five daily newspapers that said all companies should cause appearance today, February 3rd to defeat their indebtedness to the Federation but they refused to honour. Only one company honours the invitation
“Honourable colleagues, we will recall that two weeks ago, the two chambers of the National Assembly passed the N54.9 trillion 2025 Budget and this was signed into law few days ago by Mr President. And these are the kind of monies that we are expecting to get to fund this budget. How do we find the budget of all these companies are refusing to pay as at when due.
“The committee resolved to give the above-mentioned companies 72 hours to cause appearance to defend their liabilities, otherwise, the committee will have no option but to rule against them and direct them to settle their debt within seven days”.