Reps recover N28.7bn debt for FG from two oil firms

The House of Representatives says it has recovered outstanding revenues, securing $19,241,109.35 (approximately N28.7 billion) from two oil companies indebted to the Federation Account.

The recovery was made through the Committee on Public Accounts, chaired by Bamidele Salam (PDP-Osun) following an investigative hearing on the 2021 Audit Report, which focused on 45 oil companies collectively owing $1.7 billion in outstanding liabilities to the Federation.

According to the report, Chorus Energy Limited settled outstanding liability with a payment of $847,623 (N1.2 billion) on March 11, 2025. while Seplat Production Development Limited fully discharged its obligation by remitting $18.39 million (N27.6 billion) between March 10 and March 14, 2025.

Additionally, Shoreline Natural Resources Ltd. had made a $30 million payment out of total sum of $100.28 million debt before the investigation commenced and has requested a structured repayment plan for the outstanding balance.

During the Committee’s proceedings, Balarabe Haruna, a representative of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had 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.

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

The chairman affirmed that these companies have fully settled their obligations and are no longer financially liable: Amalgamated Oil Company Nigeria Ltd, Seplat Energy, Shell Exploration and Production and Shell Petroleum Development Company.

In a related development, the Committee also confirmed the recovery of the sum of N199.3 million during Remita investigation out of outstanding sum of N6.8 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 had, in 2024, mandated the Committee to investigate revenue leakages and non-remittance of funds by Ministries, Departments, and Agencies (MDAs) through Remita. This resolution was sequel to a motion sponsored by Jeremiah Umaru, which was subsequently referred to the Committee.

According to the report, 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 revealed that while N7,626,503,441.42 had been refunded, an outstanding sum of N1,984,355,431.08 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 N6,827,283,592.44.

The Committee 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.

Further investigations uncovered non-remittance of VAT on transactions processed via Remita. The CBN acknowledged an outstanding VATliability of N521,765,134.17 for transactions between November 2018 and April 2024, which remains unsettled.

Following the Committee’s intervention, Zenith Bank remitted N126,131,692.86 while Guaranty Trust Bank paid the sum of N32,585,882.48, respectively.

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

Salam, chairman of the committe reaffirmed the committee’s resolve to pursue every avenue to recover public funds. He said: “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.”