Reps probe NNPCL, oil firms over N432bn regulatory debt

The House of Representatives has commenced a probe into billions of naira in outstanding regulatory obligations owed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority by the Nigerian National Petroleum Company Limited and petroleum companies.

The House Public Accounts Committee said the liabilities under investigation had risen to ₦432.07bn, following findings contained in successive reports of the Auditor-General of the Federation.

The committee’s investigation was triggered by concerns over unpaid petroleum-related obligations and the processes used by the NMDPRA to assess, collect and recover the funds.

The Auditor-General’s 2023 Annual Audit Report had put the combined debt at N392.73bn. NNPCL accounted for N162.46bn, while companies operating under the Depot and Petroleum Products Marketers Association of Nigeria, Major Marketers Association of Nigeria and Major Energy Marketers Association of Nigeria were responsible for N230.27bn.

The obligations arose from Balancing Allowance, National Transport Average, the one per cent Midstream and Downstream Gas Infrastructure Fund, as well as legacy debts associated with importation, coastal and credit transactions.

A subsequent 2024 audit report put outstanding liabilities at N432.07bn, excluding debts attributed to NNPCL.

Additional records submitted by the NMDPRA to the lawmakers showed that 146 companies operating under DAPPMAN, MEMAN and MOMAN owed the regulator N327.53bn as of 2025.

The committee noted that some of the obligations had remained unpaid for several years, with portions dating as far back as 2017.

It said the prolonged accumulation of the liabilities had raised questions about the regulator’s revenue assessment, collection and recovery mechanisms, as well as the enforcement measures deployed against defaulting companies.

In a statement issued on Wednesday, the committee chairman, Bamidele Salam, said the investigation was intended to determine the circumstances surrounding the debts and ensure that revenue due to the government was properly accounted for and recovered.

Salam warned summoned companies and institutions against appearing before the committee without the required officials and documents.

“Any company invited by this committee must respect the people’s parliament of the Federal Republic of Nigeria by honouring the summons with appropriate representation and all relevant documents. We are not here to witch-hunt anybody; our responsibility is to establish the facts, protect public revenue and ensure that every naira due to government is properly accounted for,” he said.

The lawmakers are expected to scrutinise how the liabilities were calculated, the periods covered, payments made by the affected companies and the balances still outstanding.

They will also examine steps taken by the NMDPRA to recover the debts and determine why some obligations have remained unresolved for years.

The committee is particularly seeking explanations on “why liabilities accumulated over a number of years remained outstanding and whether enforcement measures were deployed against defaulting companies.”

The investigation comes amid increased scrutiny of revenue collection and remittance in the petroleum sector following the implementation of the Petroleum Industry Act, which introduced major changes to the industry’s regulatory framework.

The NMDPRA, established under the PIA, oversees Nigeria’s midstream and downstream petroleum operations, including petroleum product processing, transportation, distribution, domestic gas activities and related infrastructure.

Salam stressed that the inquiry was part of the National Assembly’s constitutional oversight function and was not targeted at any particular company or institution.

He said the committee would require both the affected companies and the regulatory authority to provide records showing how the liabilities arose, amounts already recovered and sums still outstanding.

The committee said it would use its oversight powers to ensure that government revenue was fully accounted for and that relevant authorities took effective steps to recover outstanding obligations.