Reps Investigate ₦432bn Debt by NNPCL and Oil Firms

The House of Representatives Public Accounts Committee has initiated an investigation into the Nigerian National Petroleum Company Limited (NNPCL) and oil firms regarding outstanding debts totaling ₦432.07 billion owed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). This investigation follows findings from the Auditor-General’s 2023 Annual Audit Report, which indicated that the combined debt of NNPCL and oil companies was ₦392.73 billion, with NNPCL responsible for ₦162.46 billion and oil companies under various associations owing ₦230.27 billion.

The debts are linked to several obligations, including Balancing Allowance and the one percent Midstream and Downstream Gas Infrastructure Fund. The 2024 report further increased the outstanding debt to ₦432.07 billion, excluding NNPCL's liabilities.

The committee, led by Chairman Bamidele Salam, aims to ascertain the reasons behind the accumulation of these debts and ensure proper recovery of government revenue. The investigation will examine the assessment basis, payment history, and enforcement measures against defaulting companies.