Audit Reports: Reps panel vows to make NNPC, oil marketers account for ₦432bn debt

The Public Accounts Committee (PAC) of the House of Representatives has vowed to ensure that the Nigerian National Petroleum Company Limited (NNPCL) and other petroleum companies indicted in the 2023 and 2024 Auditor-General’s Report account for the N432 billion allegedly owed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

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The committee said it would investigate the matter to establish the circumstances surrounding the outstanding debts and would require the affected entities to provide relevant records and information.

The committee chairman, Bamidele Salam, stated this in a statement on Wednesday announcing the commencement of the panel’s sitting.

Mr Salam urged all relevant authorities and companies invited by the committee to appear before it and provide the necessary documents.

“Chairman of the Committee, Representative Bamidele Salam, said the Committee would ensure that all relevant entities account for their obligations and provide the necessary records to enable Parliament to establish the circumstances surrounding the outstanding debts.

“Any company invited by this Committee must respect the people’s Parliament of the Federal Republic of Nigeria by honouring the summons with appropriate representation and all relevant documents. 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 the government is properly accounted for,” he said.

N432bn debt

The Punch reported on Monday that an analysis of the 2023 Auditor-General’s report showed that more than N432 billion was not paid to the NMDPRA during the year under review.

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Apart from NNPCL, other entities identified as owing include oil companies operating under the umbrellas of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Major Marketers Association of Nigeria (MOMAN), and the Major Energy Marketers Association of Nigeria (MEMAN).

The outstanding obligations arose from the Balancing Allowance, the National Transport Average, the 1 per cent Midstream and Downstream Gas Infrastructure Fund, as well as legacy debts associated with imports, coastal, and credit transactions.

A breakdown of the 2023 figures showed that NNPCL owed ₦162,456,750,832.47, while the oil companies owed ₦230,268,790,205.77, bringing the combined indebtedness to ₦392,725,541,038.24.

However, the Auditor-General’s 2024 report indicated that the outstanding debt had increased to ₦432,072,557,867.17, excluding the indebtedness of NNPCL.

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Strengthening accountability

The committee said it would scrutinise relevant records, including the basis of the outstanding liabilities, the period covered, payments already made, amounts still outstanding and steps taken by the regulatory authorities to recover the debts.

Mr Salam said the probe was aimed at strengthening accountability in the management of public funds and ensuring that statutory obligations owed to government agencies were not allowed to accumulate without appropriate recovery measures.

He reaffirmed the committee’s commitment to exercising its constitutional oversight mandate by ensuring that public revenue is properly accounted for and that government agencies take appropriate steps to recover outstanding liabilities.