The House of Representatives Public Accounts Committee, on Tuesday, initiated an investigation into the outstanding debts owed to the Federation Account by the Nigerian National Petroleum Company Limited and oil companies.
The investigative hearing, chaired by the sub-committee Chairman, Akinlade Isiaq, followed queries issued by the Office of the Auditor-General for the Federation regarding NNPCL’s financial obligations.
The report alleged that, as of the end of 2021, NNPCL and other oil companies owed the Federation $1.6bn in royalties to the Nigerian Upstream Petroleum Regulatory Commission under the Production Sharing Contract, Repayment Agreement, and Modified Carry Arrangement.
Responding to the queries, NNPCL Group Chief Executive Officer, Mele Kyari, represented by Chief Financial Officer, Dapo Segun, stated that part of the disputed funds had been used to finance the government’s priority projects and subsidies.
He said, “Once the reconciliation is concluded, relevant reports will be made available to all appropriate agencies and stakeholders.”
The sub-committee has vowed to continue its investigation, with a clear mandate to determine the current status of the debts as of December 2024 and ensure that these significant sums are recovered.
