REPS LAUNCH PROBE INTO N432BN OIL DEBT OWED TO NMDPRA

The House of Representatives has commenced an investigation into about N432bn in outstanding debts owed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority by the Nigerian National Petroleum Company Limited and other oil companies. The probe was initiated by the House Committee on Public Accounts as lawmakers seek clarification on the accumulation of the outstanding obligations and efforts to recover the funds.

The investigation is expected to examine the sources of the debts, the companies responsible for the outstanding payments and the circumstances that allowed the liabilities to accumulate. Lawmakers are also expected to scrutinise records relating to petroleum-sector payments and determine whether the affected companies have complied with their financial obligations to the regulatory authority.

The probe comes amid growing concerns over revenue leakages and unpaid statutory obligations within Nigeria's oil and gas industry. The National Assembly has repeatedly raised questions about the management and remittance of government revenues from the petroleum sector, particularly at a time when the Federal Government is seeking to improve non-tax revenue and strengthen public finances.

The House committee is expected to invite relevant officials of NMDPRA, NNPCL and the affected oil companies to provide documents and explanations regarding the outstanding liabilities. Their responses will help lawmakers establish the actual amount owed, the age of the debts and whether there are existing arrangements for repayment or recovery.

The investigation could ultimately lead to recommendations on recovering the outstanding funds and preventing similar accumulation of petroleum-sector debts in the future. The lawmakers' action also highlights the growing pressure on government agencies and oil companies to improve transparency, accountability and compliance with financial obligations in Nigeria's critical oil and gas industry.