House Committee Recovers ₦28.7 Billion from Oil Companies Amid Broader Financial Oversight
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In a significant stride towards financial accountability, the Public Accounts Committee (PAC) of the House of Representatives announced on Sunday the recovery of approximately ₦28.7 billion from two oil companies indebted to the Federation Account. This development comes as part of the committee’s ongoing investigation into the 2021 audit report by the Office of the Auditor General for the Federation.
According to a statement by House spokesman Akintunde Rotimi (APC, Ekiti), Chorus Energy Limited settled its outstanding liability with a payment of $847,623 (₦1.2 billion) on March 11, 2025. Similarly, Seplat Production Development Limited cleared its obligations by remitting $18.39 million (₦27.6 billion) between March 10 and March 14, 2025. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been provided with payment evidence for final verification.
The PAC also highlighted progress in other cases, noting that Shoreline Natural Resources Ltd. had paid $30 million towards its $100.28 million debt before the investigation began. The company has since requested a structured repayment plan for the remaining balance.
Seplat Energy Commended for Compliance
During the committee’s proceedings, NUPRC representative Balarabe Haruna reported that Seplat Energy Producing Nigeria Unlimited (formerly Mobil Producing) now holds a credit balance of $211,911.09 for crude oil royalty, $33.01 million for gas flare penalties, and $163,046.40 for concession rentals, with no outstanding liabilities. The committee commended Seplat Energy for its prompt compliance with financial obligations.
Broader Investigations and Recoveries
The PAC reaffirmed its commitment to recovering outstanding debts from 38 other oil companies under investigation. It also reported the recovery of ₦199.3 million out of an outstanding ₦6.8 billion in excessive charges and unremitted Value Added Tax (VAT) on transactions processed via the Remita platform from 2015 to 2022.
Following a motion sponsored by Jeremiah Umaru in 2024, the House mandated the PAC to investigate revenue leakages and non-remittance of funds by Ministries, Departments, and Agencies (MDAs) through Remita. The committee revealed that while ₦7.63 billion had been refunded, an outstanding sum of ₦1.98 billion remains unpaid. With the prevailing Monetary Policy Rate (MPR) of 27.25%, the accumulated interest on the unpaid sum amounts to ₦4.84 billion, bringing the total refundable amount to ₦6.83 billion.
Banks Under Scrutiny
The PAC confirmed that Guaranty Trust Bank (GTB) settled ₦40.6 million in overdue charges for the period between March and October 2015. Further investigations uncovered non-remittance of VAT on transactions processed via Remita, with the Central Bank of Nigeria (CBN) acknowledging an outstanding VAT liability of ₦521.77 million for transactions between November 2018 and April 2024. Following the committee’s intervention, Zenith Bank remitted ₦126.13 million, while GTB paid ₦32.59 million.
Despite these recoveries, several value chain providers have yet to comply with VAT remittance requirements and other under-remittances identified in the investigation.
Commitment to Accountability
Chairman of the PAC, Bamidele Salam (PDP, Osun), reaffirmed the committee’s resolve to recover public funds and prevent revenue leakages. “These recoveries demonstrate the effectiveness of the oversight function of the National Assembly in ensuring accountability and transparency in the management of public funds,” Salam stated. He emphasized the committee’s dedication to safeguarding public resources in the national interest.
The PAC’s efforts underscore the critical role of legislative oversight in promoting financial discipline and institutional accountability, ensuring that every kobo due to the Federation is accounted for and remitted accordingly.
