The House of Representatives Public Accounts Committee has commenced an investigation into outstanding regulatory obligations owed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) by the Nigerian National Petroleum Company Limited (NNPCL) and oil companies.
The liabilities under investigation have been put at ₦432.07bn, following findings contained in successive reports by the Auditor-General of the Federation.
The probe is aimed at determining how the debts accumulated, what payments have been made and the steps taken by the regulatory authority to recover outstanding government revenue.
The Auditor-General’s 2023 Annual Audit Report had placed the combined indebtedness of NNPCL and affected oil companies at ₦392.73bn.
NNPCL accounted for ₦162.46bn, while 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) were reported to owe ₦230.27bn.
The liabilities were connected to several petroleum-related obligations, including Balancing Allowance, National Transport Average and the one per cent Midstream and Downstream Gas Infrastructure Fund.
Some of the outstanding amounts also relate to legacy obligations arising from importation, coastal and credit transactions.
The Auditor-General’s 2024 report subsequently put outstanding indebtedness at ₦432.07bn, although the figure excluded liabilities attributed to NNPCL.
Further information submitted to the lawmakers by the NMDPRA showed that 146 oil companies operating under DAPPMAN, MEMAN and MOMAN owed the regulatory authority ₦327.53bn as of 2025.
The committee expressed concern that some of the liabilities had remained outstanding for several years, with certain obligations reportedly dating back to 2017.
The prolonged accumulation of unpaid obligations has raised questions about the effectiveness of the systems used by the NMDPRA to assess, collect and recover regulatory revenues.
The committee is expected to examine the basis on which the various liabilities were calculated and the periods covered by the assessments.
Lawmakers will also scrutinise payments already made by the affected companies, outstanding balances and measures taken by the NMDPRA to recover the funds.
The Chairman of the Public Accounts Committee, Bamidele Salam, said the investigation was intended to establish the facts surrounding the outstanding obligations and ensure that government revenue due from the affected entities was properly accounted for.
Salam also warned companies and institutions summoned by the committee to appear with appropriate representatives and all relevant records.
“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 said.
He stressed that invited entities were expected to respect the committee’s summons and cooperate fully with the investigation.
As part of the inquiry, lawmakers will seek explanations on why obligations accumulated over several years without being fully settled.
The committee will also determine whether enforcement measures were taken against companies that failed to meet their payment obligations.
The lawmakers are expected to compare records from the NMDPRA, affected companies and the Auditor-General’s reports to establish the actual amounts owed and amounts already recovered.
The investigation comes as revenue collection and remittance within Nigeria’s petroleum sector continue to receive increased attention following the implementation of the Petroleum Industry Act (PIA).
The legislation introduced major changes to the legal and regulatory structure governing Nigeria’s petroleum industry, including the creation of the NMDPRA.
The authority is responsible for regulating activities across the midstream and downstream petroleum segments.
The NMDPRA oversees areas including petroleum product processing, transportation and distribution, domestic gas operations and infrastructure.
Its regulatory responsibilities also cover other activities within Nigeria’s midstream and downstream petroleum value chain.
The House committee said the investigation was part of the National Assembly’s constitutional oversight responsibility and was not designed to single out any particular company or institution.
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Salam said the committee would require the affected companies and the regulatory authority to provide documentation showing how the outstanding obligations arose, what had been recovered and what remained unpaid.
The lawmakers reaffirmed their intention to use their oversight powers to ensure that public revenue is properly accounted for and that agencies responsible for collection take effective steps to recover outstanding liabilities.
The House Public Accounts Committee’s investigation into ₦432.07bn in NMDPRA-related liabilities puts renewed focus on revenue collection and accountability in Nigeria’s petroleum sector.
The probe will seek to establish the true status of the debts, examine why some obligations remained unpaid for years and determine whether sufficient recovery and enforcement measures were taken.
