Reps uncover N9.4tr debt in oil sector, summon 13 firms over unremitted revenues

Significant earnings from Company Income Tax (CIT), Value Added Tax (VAT) and import duties raised federation revenue in May by N10.023 billion to N2.942 trillion from N2.08 trillion generated in April 2025.
 
This is contained in a communiqué issued by the Federation Account Allocation Committee (FAAC) at the end of its June meeting in Abuja yesterday.  
  
This was as the House of Representatives Public Accounts Committee (PAC) uncovered over N9.4 trillion in unpaid financial obligations to the Federation Account by oil and gas companies operating in Nigeria as of Q4 2024.
 
According to the FAAC communiqué, N1.659 trillion, being May 2025 federation account revenue, was shared to the Federal Government, states and the local councils. It said the N1.659 trillion total distributable revenue comprised statutory revenue of N863.895 billion, distributable VAT of N691.714 billion, Electronic Money Transfer Levy (EMTL) of N27.667 billion and Exchange Difference revenue of N76.614 billion.  
 
The communiqué informed that gross revenue of N2.942 trillion was available in May 2025. Dedication for the cost of collection was N111.908 billion, while transfers, interventions and refunds amounted to N1.171 trillion. 
 
It noted that gross revenue of N742.82 billion was available from VAT in May, higher than the N642.265 billion available in April by N100.555 billion.   
 
The communiqué further stated that from the N1.659 trillion distributable revenue, the Federal Government received N538.004 billion and the states N577.841 billion. The local councils received N419.968 billion, while N124.076 billion (13 per cent derivation) was shared among benefiting states.  
 
On the defaulting firms, the liabilities, according to the committee, stem from unpaid oil royalties, concession rentals, gas flare penalties and other dues under various contractual agreements, including Production Sharing Contracts (PSCs), Modified Carry Arrangements (MCAs) and Repayment Agreements. 
 
The House also cautioned 13 non-compliant firms over their persistent failure to respond to legislative summons. Spokesman for the House, Akin Rotimi, in a statement yesterday, noted that 13 companies, which are allegedly owing $456,952,216.51 (about N731.1 billion), had consistently failed to honour invitations to appear before the committee despite several public notices and direct communications.

The affected companies include: Conoil Producing Ltd. ($5m), Continental Oil & Gas Ltd. ($57m), Energia Ltd. ($19.5m), Frontier OML 13 ($952,216.51), Millennium Oil & Gas Ltd. ($2.067m), Neconde Energy Ltd. ($325.7m), Pillar Oil Ltd. ($4.6m), Waltersmith OML 16 ($8.7m), Aiteo Ltd. ($34.8m), Bilton ($5m), Heirs Holdings ($137.7m), General Hydrocarbon Ltd. ($22.5m), and Eroton ($34.5m).
 
The committee has scheduled July 2 and 3, 2025, as mandatory appearance dates for these firms, warning that continued defiance would attract constitutional penalties.
 
Rotimi said the committee directed six other oil firms, OML 18 ($15.2m), Shoreline ($70m), Network Exploration ($2.6m), Aradel ($8.2m), Newcross Exploration ($25m) and Pan Ocean ($4.5m) to reappear before it over separate outstanding liabilities totalling $125.5 million.
 
Meanwhile, the committee disclosed the recovery of an additional $15.7 million (about N25 billion) from four oil companies, namely TotalEnergies ($2m), Shoreline Natural Resources ($10m), OML 18 Resources ($3,474,123) and Enageed Resource Limited ($280,000).