The House of Representatives Public Accounts Committee (PAC) has commenced an investigation into outstanding financial liabilities in Nigeria’s oil industry, put at more than ₦432 billion.
Affected companies and other relevant entities have been summoned to account for the debts owed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The investigation followed findings contained in the Auditor-General’s annual audit reports on unpaid regulatory and petroleum-related obligations accruing to the NMDPRA.
The Committee is examining the circumstances surrounding the accumulation of the liabilities, the payments made so far, the amounts still outstanding, and measures taken by the regulatory authority to recover the funds.
According to the Auditor-General’s 2023 Annual Audit Report, the Nigerian National Petroleum Company Limited (NNPCL) and oil companies operating under the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Major Marketers Association of Nigeria (MOMAN) and Major Energy Marketers Association of Nigeria (MEMAN) had a combined outstanding debt of ₦392,725,541,038.24.
The liabilities arose from obligations relating to Balancing Allowance, National Transport Average, the one per cent Midstream and Downstream Gas Infrastructure Fund, as well as legacy debts associated with imports, coastal and credit transactions.
A breakdown of the 2023 figure showed that NNPCL accounted for ₦162,456,750,832.47, while the affected oil companies owed ₦230,268,790,205.77.
The Auditor-General’s 2024 report subsequently put the outstanding debt at ₦432,072,557,867.17, reporting it separately from NNPCL’s indebtedness.
Further submissions by the NMDPRA to the Public Accounts Committee showed that 146 oil companies operating under DAPPMAN, MEMAN and MOMAN owed the Authority ₦327,525,987,255.67 as of 2025.
The Committee noted that the obligations owed by the affected oil companies covered the period from 2017 to 2023 and remained largely unpaid at the time of the review.
Chairman of the Public Accounts Committee, Rep. Bamidele Salam, said the Committee would ensure that all relevant entities accounted for their obligations and produced the records required to establish the circumstances surrounding the outstanding liabilities.
He also stressed that companies and institutions summoned by the Committee must accord the National Assembly the respect it deserves by appearing with appropriate representation and the relevant documents.
Salam said, “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’re 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.”
The Committee is expected to scrutinize the records supporting the outstanding liabilities, including the basis of the assessments, the periods covered, payments already made, and the balances still due.
It’ll also examine the actions taken by the NMDPRA to recover the outstanding funds and determine whether existing recovery mechanisms have been effective in ensuring that obligations to the government are settled within the appropriate timeframe.
The probe comes amid continuing scrutiny of revenue collection and accountability in Nigeria’s petroleum sector, particularly obligations arising from the regulation of midstream and downstream operations.
The NMDPRA was established under the Petroleum Industry Act to regulate the midstream and downstream petroleum sectors, including petroleum products, gas infrastructure and other related activities. Its regulatory responsibilities include administering and enforcing statutory obligations applicable to operators in the sector.
For the lawmakers, the issue extends beyond the size of the liabilities to the question of how debts accumulated over several years could remain unpaid and whether the relevant agencies exercised sufficient oversight and recovery measures.
The Committee is also expected to establish whether any of the affected companies have disputed the assessments, whether reconciliation exercises have been conducted and what steps have been taken by the NMDPRA to resolve outstanding claims.
Salam said the Committee’s objective was to establish the facts, strengthen accountability in the management of public revenue and ensure that statutory obligations due to government agencies were not allowed to accumulate indefinitely.
The Public Accounts Committee reaffirmed its commitment to exercising its constitutional oversight mandate to ensure that public revenue is properly accounted for and that responsible agencies take appropriate steps to recover outstanding liabilities.
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