Reps Demand N58bn In Unpaid Royalties from Seven Oil Firms!

Reps Demand N58bn In Unpaid Royalties from Seven Oil Firms!

The House of Representatives has directed seven oil companies operating in Nigeria’s oil and gas sector to remit a total of $37.4 million (₦58 billion) in unpaid royalties to the Federation Account by August 2025………READ MORE

This directive follows an investigation by the Committee on Public Accounts, which examined records from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The probe revealed significant lapses in royalty payments and reconciliation processes across the sector.

The unpaid sum is part of a ₦9 trillion liability flagged by the Auditor-General of the Federation in his 2021 report to the National Assembly. Some of these debts have been accumulating for over four years, highlighting major revenue losses in the oil sector.

45 Oil Companies Owe ₦2.5 Trillion

Beyond the seven firms that pledged to pay, the Committee disclosed that 45 oil and gas companies collectively owe $1.7 billion (₦2.5 trillion) in outstanding royalty payments as of December 31, 2024.

Oil Firms Affected

Seven Companies That Agreed to Pay by August 2025

• Belema Oil
• Panocean Oil Nigeria Ltd
• Newcross Exploration & Production Ltd
• Dubri Oil Company Ltd
• Chorus Energy
• Amni International
• Network Exploration

Nine Companies Contesting the Figures (Requesting Reconciliation with NUPRC)

• Aradel/Niger Delta
• Chevron
• STAR DEEP
• Shore Line
• Seplat Producing Unlimited
• Esso Erha
• Esso Usan
• Eroton Exploration
• Seplat Energy

These firms, which owe a combined $429.2 million, have been given two weeks to complete the reconciliation process and settle their confirmed debts.

28 Companies That Ignored the Committee’s Summons

A total of 28 oil firms, owing $1.23 billion, neither honored invitations from the Committee nor responded to public notices. Some of the companies include:

• Addax Petroleum Exploration Nigeria Ltd
• AITEO Group
• Total E&P Nigeria
• Waltersmith Petroman Limited
• Conoil Plc
• Nigeria Agip Exploration Ltd (NAE)
• Oando Oil Ltd
• Heirs Holding
• Sahara Field Production Limited
• Oriental Energy Resources Limited

The House Committee has given these firms one more week to submit their documentation and appear before the Committee. Failure to comply will result in legislative and regulatory sanctions to enforce accountability.

Only Two Firms Are Fully Compliant

The investigation found that only Shell Petroleum Development Company (SPDC) and Shell Nigeria Exploration & Production had met their full royalty payment obligations.

The House of Representatives stressed that companies benefiting from Nigeria’s natural resources must meet their financial obligations, warning that stricter enforcement measures will be implemented to prevent further revenue losses.