Key Takeaways
- The House of Representatives Public Accounts Committee (PAC) is investigating N432.07 billion in outstanding debts owed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
- Debtors include the Nigerian National Petroleum Company Limited (NNPCL) and 146 oil companies operating under DAPPMAN, MOMAN, and MEMAN.
- The liabilities, accumulated between 2017 and 2023, stem from regulatory obligations, petroleum-related charges, and legacy debts.
- The investigation was prompted by findings in the Auditor-General's annual audit reports for 2023 and 2024.
- PAC Chairman, Rep. Bamidele Salam, has vowed to ensure full accountability and recovery of public funds, warning against non-compliance with parliamentary summons.
ABUJA, Nigeria – In a significant move to bolster fiscal transparency and accountability within Nigeria's vital petroleum sector, the House of Representatives Public Accounts Committee (PAC) has commenced a rigorous investigation into outstanding debts totaling N432.07 billion. These substantial liabilities are reportedly owed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) by the Nigerian National Petroleum Company Limited (NNPCL) and a multitude of oil companies.
The probe was triggered by alarming findings detailed in the Auditor-General's annual audit reports, which consistently highlighted unpaid regulatory and petroleum-related obligations. The NMDPRA, established to provide a framework for the technical and commercial regulation of the midstream and downstream petroleum operations in Nigeria, relies on these funds to execute its mandate effectively, including ensuring product availability, quality, and safety across the nation.
According to the Auditor-General's 2023 Annual Audit Report, NNPCL and various oil companies operating under the umbrella of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Major Marketers Association of Nigeria (MOMAN), and Major Energy Marketers Association of Nigeria (MEMAN), were collectively indebted to the NMDPRA to the tune of N392.73 billion. This staggering sum arose from various charges, including Balancing Allowance, National Transport Average, the one per cent Midstream and Downstream Gas Infrastructure Fund, as well as legacy debts related to imports, coastal, and credit transactions.
A detailed breakdown from the 2023 report indicated that NNPCL alone accounted for N162.46 billion of this debt, while the oil companies owed N230.27 billion, bringing their combined liability to the aforementioned N392.73 billion. However, the Auditor-General's subsequent 2024 report presented an even more concerning picture, placing the outstanding indebtedness at N432.07 billion, notably excluding NNPCL's liability, suggesting a significant increase in the debts owed by other operators.
Further submissions made by the NMDPRA to the Public Accounts Committee revealed that 146 oil companies, operating under DAPPMAN, MEMAN, and MOMAN, owed the Authority N327.53 billion as of 2025. The committee observed that these outstanding obligations span a considerable period, from 2017 to 2023, and have largely remained unpaid, severely impacting the NMDPRA's operational capacity and the nation's revenue generation.
Rep. Bamidele Salam, the Chairman of the Public Accounts Committee, underscored the panel's unwavering commitment to ensuring that all entities involved are held accountable for their obligations. He affirmed that the committee would meticulously scrutinize all necessary records to establish the precise circumstances surrounding these outstanding liabilities and facilitate their recovery. Salam also issued a stern warning to companies and institutions summoned by the committee, emphasizing the importance of respecting parliamentary invitations.
“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,” Salam stated, adding, “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 further elaborated that the committee would delve into the basis of these liabilities, the periods covered, any payments already made, outstanding balances, and the measures taken by regulatory authorities to recover the funds.
The investigation, according to Salam, is fundamentally aimed at strengthening accountability in the management of public revenue and preventing statutory obligations owed to government agencies from accumulating without effective recovery mechanisms. The PAC has reaffirmed its constitutional oversight mandate, pledging to ensure proper accounting of public revenues and that government agencies take decisive steps to recover outstanding liabilities.
Why This Matters
The recovery of N432.07 billion in outstanding debts is crucial for Nigeria's economic stability and development, as these funds are vital for public services, infrastructure projects, and the effective regulation of the petroleum sector. This parliamentary probe underscores the legislature's commitment to transparency and fiscal discipline, sending a strong message that statutory obligations cannot be disregarded, and holding key players accountable for their financial responsibilities to the nation.
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