The House of Representatives Public Accounts Committee has launched an investigation into alleged outstanding regulatory debts owed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) by the Nigerian National Petroleum Company Limited (NNPCL) and oil companies, with liabilities under review estimated at ₦432.07bn.
The probe follows findings contained in the Auditor-General’s annual audit reports on unpaid petroleum-related obligations owed to the midstream and downstream petroleum regulator.
The committee said the investigation was aimed at establishing how the debts accumulated, determining outstanding balances and ensuring that all revenues due to the Federal Government were properly accounted for and recovered.
The Auditor-General’s 2023 Annual Audit Report placed the combined indebtedness of NNPCL and oil companies at ₦392.73bn.
According to the report, NNPCL accounted for ₦162.46bn, while oil 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) owed ₦230.27bn.
The liabilities were linked to Balancing Allowance, National Transport Average, the one per cent Midstream and Downstream Gas Infrastructure Fund, as well as legacy obligations arising from importation, coastal transactions and credit arrangements.
The Auditor-General’s 2024 report later increased the outstanding indebtedness under review to ₦432.07bn, excluding liabilities attributed to NNPCL.
Further submissions from NMDPRA to the committee showed that 146 oil companies operating under DAPPMAN, MEMAN and MOMAN owed the authority ₦327.53bn as of 2025.
The committee expressed concern that some of the obligations had remained unpaid for several years, with some debts dating back to 2017.
Chairman of the Public Accounts Committee, Bamidele Salam, stated that the inquiry was not targeted at any company or institution but was part of the National Assembly’s constitutional responsibility to protect public revenue.
“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 stated.
He warned companies and institutions invited before the committee to appear with appropriate representatives and relevant financial records.
The lawmakers are expected to examine the basis for the debt assessments, payments already made, outstanding balances and measures taken by NMDPRA to recover the funds.
The committee will also seek explanations on why the liabilities remained unresolved for years and whether enforcement mechanisms were applied against companies that failed to meet their obligations.
The investigation comes amid increased scrutiny of revenue collection and remittance within Nigeria’s petroleum sector following reforms introduced under the Petroleum Industry Act.
NMDPRA was established under the PIA to regulate midstream and downstream petroleum operations, including petroleum product processing, transportation, distribution, domestic gas operations and related infrastructure activities.
The committee said affected companies and the regulatory authority would be required to provide documentation explaining how the debts arose, what amounts had been recovered and what remained outstanding.
