The House of Representatives Public Accounts Committee (PAC) has commenced an investigation into outstanding debts owed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) by the Nigerian National Petroleum Company Limited (NNPCL) and various oil companies, with the liabilities rising to about N432.07 billion.
The investigation follows findings contained in the Auditor-General’s annual audit reports concerning unpaid regulatory and petroleum-related obligations owed to the petroleum sector regulator.
The issue has raised concerns among lawmakers over the recovery of government revenue and why substantial amounts owed to a government agency have remained outstanding for several years.
According to the Auditor-General’s 2023 Annual Audit Report, 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) owed NMDPRA a combined N392.73 billion.
A breakdown of the 2023 figure showed that NNPCL accounted for about N162.46 billion, while the affected oil companies owed approximately N230.27 billion.
The liabilities were linked to several petroleum-related obligations, including Balancing Allowance, National Transport Average, the one per cent Midstream and Downstream Gas Infrastructure Fund, as well as legacy debts associated with imports, coastal transactions and credit transactions.
However, the Auditor-General’s 2024 report indicated that the outstanding liabilities had risen to N432.07 billion, although the figure reported for that year excluded NNPCL’s indebtedness.
Further submissions by NMDPRA to the Public Accounts Committee showed that 146 oil companies operating under DAPPMAN, MEMAN and MOMAN owed the Authority approximately N327.53 billion as of 2025. The debts cover obligations accumulated between 2017 and 2023, with a substantial portion still unpaid at the time of the review.
The development has prompted the lawmakers to demand explanations from the affected companies and government institutions over how the liabilities accumulated and why recovery efforts have not produced the desired results.
Chairman of the Public Accounts Committee, Rep. Bamidele Salam, said the committee would examine the relevant records to establish the facts surrounding the debts.
He said the committee would review the basis of the outstanding liabilities, the period covered, payments that have already been made, the amounts still outstanding and the steps taken by NMDPRA to recover the money.
Salam also warned companies and institutions invited by the committee against ignoring parliamentary summons.
According to him, the investigation is not intended to witch-hunt any company or individual but to ensure that public revenue is properly accounted for.
The committee chairman stressed that every entity with outstanding obligations must provide the necessary documents and account for its liabilities before the National Assembly.
The investigation is particularly significant because NMDPRA relies on revenue from regulatory and petroleum-related activities to carry out its statutory responsibilities.
The Auditor-General had previously raised concerns about weaknesses in NMDPRA's internal control system and the failure to recover outstanding third-party debts. The audit findings recommended that the Authority explain the non-recovery of the outstanding funds to the Public Accounts Committees of the National Assembly and take steps to recover the money.
The latest probe therefore places both the oil companies and the regulatory authority under scrutiny.
While the affected companies are being asked to account for unpaid obligations, NMDPRA is also expected to explain what measures it has taken over the years to recover the money and why significant amounts have remained outstanding.
For the House committee, the issue goes beyond a dispute over figures. It concerns the management of government revenue and whether statutory obligations are being properly collected and accounted for.
The lawmakers are expected to examine documents and submissions from the affected companies, NNPCL and NMDPRA before determining the next steps.
The committee has also reiterated that its objective is to strengthen accountability and ensure that money due to the government does not continue to accumulate as unpaid liabilities.
As the investigation progresses, attention will be focused on the companies involved, the regulatory obligations covered by the debts and the measures that will ultimately be taken to recover the outstanding N432.07 billion.
The probe could also lead to broader recommendations on revenue collection and monitoring within Nigeria's oil and gas sector, particularly where statutory payments and regulatory obligations remain unpaid for extended periods.
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