Reps recover N28.7b from oil firms

The House of Representatives Public Accounts Committee (PAC) has recovered $19,241,109.35 (N28.7 billion) from two oil companies indebted to the Federation Account.

The panel has also successfully recovered N199.3 million out of an outstanding N6.8 billion, comprising excessive charges levied between March and October 2015 and unremitted Value Added Tax (VAT) on transactions processed via the Remita platform from 2015 to 2022.

Spokesman of the House, Akin Rotimi, who disclosed this in a statement on Sunday, said the panel’s investigation, which is based on findings from the 2021 audit report, focused on 45 oil companies collectively owing $1.7 billion in outstanding liabilities to the Federation.

According to the statement, Chorus Energy Limited settled its outstanding liability with a payment of $847,623 (N1.2 billion) on March 11, 2025.

Seplat Production Development Limited fully discharged its obligation by remitting $18.39 million (N27.6 billion) between March 10 and March 14, 2025.

Rotimi said the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had been furnished with evidence of these payments for final verification.

Additionally, he noted that Shoreline Natural Resources Ltd. had made a $30 million payment towards its $100.28 million debt before the investigation commenced and has requested a structured repayment plan for the outstanding balance.

During the Committee’s proceedings, a representative of the NUPRC, Balarabe Haruna, reported that following recent reconciliations, 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 panel commended Seplat Energy for its prompt compliance with its financial obligations.

The Committee reaffirmed its commitment to deploying all constitutionally sanctioned measures to recover outstanding debts from the remaining 38 oil companies under investigation.

The report further highlighted that the Amalgamated Oil Company Nigeria Ltd., Seplat Energy, Shell Exploration and Production, and Shell Petroleum Development Company have fully settled their obligations and are no longer financially liable.

On recovery from the Remita investigation, the Green Chamber had, in 2024, mandated the Committee to investigate revenue leakages and non-remittance of funds by Ministries, Departments, and Agencies (MDAs) through Remita.

This directive followed a motion sponsored by Hon. Jeremiah Umaru, which was subsequently referred to the Committee.

According to the report, the Federal Government had previously directed value chain providers, including banks, Remita, and the Central Bank of Nigeria (CBN), to refund one percent transaction charges collected via Remita between March and October 2015.

Rotimi disclosed that an audit of records from banks and Remita revealed that while ₦7,626,503,441.42 had been refunded, an outstanding sum of ₦1,984,355,431.08 remained unpaid.

The statement said: “Applying the prevailing Monetary Policy Rate (MPR) of 27.25 percent, the accumulated interest on the unpaid sum amounts to ₦4,842,928,161.36, bringing the total refundable amount to ₦6,827,283,592.44.
“The Committee confirmed that on March 13, 2025, Guaranty Trust Bank (GTB) settled N40.6 million in overdue charges for the period between March and October 2015.

“Further investigations uncovered non-remittance of VAT on transactions processed via Remita. The CBN acknowledged an outstanding VAT liability of ₦521,765,134.17 for transactions between November 2018 and April 2024, which remains unsettled.

“Following the Committee’s intervention, Zenith Bank remitted N126,131,692.86, while Guaranty Trust Bank paid ₦32,585,882.48.”

Despite these recoveries, Rotimi revealed that several other value chain providers are yet to comply with VAT remittance requirements and other under-remittances identified in the investigation.

Chairman of the House Public Accounts Committee, Rep. Bamidele Salam, reaffirmed the Committee’s resolve to pursue every avenue to recover public funds, stating: “These recoveries demonstrate the effectiveness of the oversight function of the National Assembly in ensuring accountability and transparency in the management of public funds. We will continue to engage with relevant institutions and deploy all necessary legislative tools to recover outstanding debts and prevent revenue leakages.

“Our objective is to ensure that every kobo due to the Federation is accounted for and remitted accordingly.”