Reps direct seven oil firms to pay N58bn unpaid royalty debts

…say 45 oil firms owe N2.5trn

The House of Representatives said seven oil operators in Nigeria’s oil and gas industry had undertaken to remit a total of $37,435,094.52 (approximately ₦58 billion) to the Federation Account before August 2025.

This follows investigation by the Committee on Public Accounts on records from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which flagged lapses in royalty payments and reconciliation processes across the sector.

The pledged repayment forms part of a ₦9 trillion outstanding liability queried by the Auditor-General of the Federation in his 2021 report submitted to the National Assembly. The debts, some of which, had accrued over a period of four years, highlighting longstanding revenue leakages in the oil and gas sector.

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Beyond these seven companies, the Committee said investigations had uncovered $1.7 billion (₦2.5 trillion) owed by 45 oil and gas companies in unpaid royalty payments as of December 31, 2024.

The following seven companies acknowledged their outstanding debts and agreed to settle them before August 2025: Belema Oil, Panocean Oil Nigeria Ltd, Newcross Exploration & Production Ltd, Dubri Oil Company Ltd, Chorus Energy, Amni International, and Network Exploration

Nine companies, with a combined outstanding balance of $429.2 million, contested the figures and requested a reconciliation process with NUPRC to verify their actual liabilities. These companies include: Aradel/Niger Delta, Chevron, STAR DEEP, Shore Line, Seplat Producing Unlimited, Esso Erha, Esso Usan, Eroton Exploration, and Seplat Energy

The Committee has therefore directed that the reconciliation process be concluded within two weeks, after which companies must settle their confirmed debts without further delay.

The Committee further disclosed that a total of 28 companies, collectively owing $1,230,708,293.14, had failed to honor invitations by the Committee or respond to public notices.

These companies include: Addax Petroleum Exploration Nigeria Ltd, AITEO Group, All Grace Energy, Amalgamated Oil Company Nigeria Limited, Total E&P Nigeria (OML 100, 102, 52 & 99), Bilton Energy Limited, Enageed Resources Limited, Waltersmith Petroman Limited, Conoil Plc, Continental Oil & Gas Company Ltd, Energia Limited, First E&P Ltd, Frontier Oil Limited, General Hydrocarbons Limited, Green Energy International Ltd, Nigeria Agip Exploration Ltd (NAE), and Neconde Energy Limited.

Others are Nigeria Petroleum Development Company (NPDC) – OML 60, 61 & 63, Lekoil Oil and Gas Investments Limited, Midwestern Oil and Gas Limited, Millennium Oil and Gas Company Limited. Oando Oil Ltd (OML 60, 61 & 62), Heirs Holding, Pillar Oil Limited, Platform Petroleum Limited, Universal Energy Limited / Sinpec, Sahara Field Production Limited, and Oriental Energy Resources Limited.

The Committee has given the affected companies a further grace period of one week to submit all relevant documentation regarding their statutory obligations and appear before the Committee. It said failure to comply within this timeframe would result in firm legislative and regulatory sanctions to enforce accountability and ensure compliance.

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Only two companies were found to have fully met their royalty obligations, namely, Shell Petroleum Development Company (SPDC) and Shell Nigeria Exploration & Production.

The House of Representatives however reiterated that companies benefiting from Nigeria’s natural resources must comply with financial obligations to support national development, adding that necessary legislative measures would be taken to enforce compliance and safeguard public revenue.