HOR : PAC Investigates Debt Owed Govt By NNPCL

The House of Representatives Committee on Public Accounts has launched an investigation into outstanding debts owed the Federation Account by the Nigerian National Petroleum Company Limited, NNPCL and several oil companies.

This investigation follows concerns raised by the Office of the Auditor General for the Federation regarding financial obligations that remained unsettled by NNPC Ltd and various oil firms.

According to the Auditor General’s report, at the end of 2021, NNPC Ltd and oil companies owed the Federation approximately $1.6 billion in royalties payable to the Nigerian Upstream Petroleum Regulatory Commission, NARC, under the Production Sharing Contract, Repayment Agreement, and Modified Carry Arrangement.

Further findings indicate that NNPCL’s claims against the Federation stood at N1.9 trillion.

In their response, the NNPC’s Group Chief Executive Officer, GCEO, represented by the Chief Financial Officer, Mr. Dapo Segun explained that part of the funds in question had been allocated to the government’s Priority Projects, GPP, and subsidy funding, which was sustained until its removal in September 2024.

The NNPC’s Group Chief Executive Officer, clarified that the deductions were made from the Federation’s crude oil and gas entitlements, including royalties, and were appropriated to various projects in line with the National Assembly-approved budget.

Meanwhile, the House the Sub-Committee Chaired by Mr. Akinlade Isiaq has promised to continue its investigation into 2025, with the aim of determining the current status of the debts and ensuring the recovery of outstanding funds.

Mr. Isiaq reaffirmed the Sub-Committee’s commitment to professionalism and transparency.
Meanwhile the Committee has also summoned oil companies indicted by the NUPRC report, which revealed that they collectively owed the Federal Government $929 million as of September 30, 2024.

Oduyemi Odumade, Edited By Grace Namiji