Lawmakers Launch Probe into NNPCL, Oil Firms' ₦432bn Debt to NMDPRA — full story

The Public Accounts Committee of the House of Representatives has initiated an inquiry concerning significant regulatory debts owed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) by the Nigerian National Petroleum Company Limited (NNPCL) and various oil companies. The total liabilities under review currently stand at a staggering ₦432.07 billion.

This investigation was prompted by revelations in the Auditor-General’s annual audit reports, which highlighted numerous unpaid petroleum-related obligations due to the regulatory body. Specifically, the Auditor-General’s 2023 Annual Audit Report detailed a combined indebtedness of ₦392.73 billion from NNPCL and other oil firms. Of this sum, NNPCL alone was responsible for ₦162.46 billion, while 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) collectively owed ₦230.27 billion.

These outstanding amounts are connected to various charges, including Balancing Allowance, National Transport Average, the one percent Midstream and Downstream Gas Infrastructure Fund, alongside historical obligations stemming from importation, coastal, and credit transactions. The Auditor-General’s subsequent 2024 report further escalated the total outstanding indebtedness to ₦432.07 billion, a figure that excludes liabilities specifically attributed to NNPCL.

Additional submissions from the NMDPRA to the committee revealed that as of 2025, 146 oil companies affiliated with DAPPMAN, MEMAN, and MOMAN had accumulated debts amounting to ₦327.53 billion to the authority. The committee expressed serious concerns that these obligations have spanned several years, with some dating as far back as 2017, questioning the efficacy of the NMDPRA’s mechanisms for assessing, collecting, and recovering these funds.

In a statement released on Wednesday, Committee Chairman Bamidele Salam affirmed that the probe aims to uncover the full facts behind these outstanding liabilities and guarantee that all government revenue due from the implicated entities is properly accounted for and recovered. He issued a stern warning to all companies and institutions summoned by the committee, emphasizing the need for them to appear with appropriate representatives and all relevant documentation. “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,” Salam stated.

The committee plans to thoroughly scrutinize the basis of these debt assessments, the periods they cover, payments already made by the companies, remaining balances, and actions taken by the NMDPRA to recover the funds. It will also seek explanations regarding “why liabilities accumulated over a number of years remained outstanding and whether enforcement measures were deployed against defaulting companies.”

This investigation unfolds amidst increased scrutiny of revenue generation, collection, and remittance within Nigeria’s petroleum industry, particularly following the implementation of the Petroleum Industry Act (PIA). The PIA introduced a comprehensive overhaul of the legal and regulatory framework governing the sector, establishing the NMDPRA to oversee midstream and downstream petroleum operations. Its mandate includes regulating petroleum product processing, transportation, distribution, domestic gas operations, infrastructure, and other activities within these segments.

Salam reiterated that the inquiry is an exercise of the National Assembly’s constitutional oversight responsibility and is not targeting any specific company or institution. He confirmed that lawmakers would demand accountability from the affected entities and the regulatory authority for the outstanding obligations, requiring documentation to ascertain how these debts originated, what has been recovered, and what remains unpaid. The committee reaffirmed its commitment to utilize its oversight powers to ensure proper accounting of public revenue and to compel collecting agencies to take effective measures for recovering outstanding liabilities.