The House of Representatives Committee on Public Accounts has given a two-week deadline to three major oil companies—Chorus Energy, Dubril Oil Company Limited, and Belema Oil—to settle their outstanding debt of $5,543,491.45 owed to Nigeria’s Federation Account.
The directive follows an ongoing investigation prompted by a report from the Auditor General of the Federation.
During the hearing, Balarabe Haruna of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) detailed the debts owed by the oil firms. Chorus Energy owes $814,680.06 and ₦181,954,238.43, with amounts allocated to crude oil price and production. Dubril Oil Company has an outstanding balance of $3,025,193.71, including crude oil production and gas flare charges. Belema Oil’s debt stands at $1,703,617.68, attributed to crude oil pricing, gas flaring, and concession rentals.
The Chief Financial Officer of Chorus Energy, Oluseyi Simon, acknowledged the debt, attributing it to an increase in crude oil price rates. He assured lawmakers that the company had already paid $5.3 million in 2024 and would clear the remaining balance before the end of the month. Similarly, Clement, Acting Managing Director of Dubril Oil, admitted to the outstanding amount, citing declining production in the first quarter of 2024. He said efforts to restore production had so far been unsuccessful but promised that new drilling operations would enable debt repayment. Clement also revealed ongoing discussions with the Economic and Financial Crimes Commission (EFCC) on a payment schedule, with a resolution expected by the third quarter of 2025.
Belema Oil’s Managing Director, Ahmad H. Sambk, blamed operational challenges, including evacuation pipeline failures since August 2022, which resulted in significant leakages and the loss of nearly 5 million barrels of crude oil. He explained that this led to a complete shutdown, making it difficult to meet financial obligations.
Chairman of the Investigation Sub-Committee, Hon. Akinlade Isaq, expressed frustration over the failure of oil companies to remit funds owed to the government. “Paying off these outstanding debts is not just a matter of financial responsibility—it is a critical step toward improving governance in Nigeria,” Isaq stated.
The committee issued a strict two-week ultimatum to the oil firms to settle their debts and warned of severe consequences for any company that failed to appear at the hearings. The lawmakers also disclosed debts owed by other oil firms that failed to attend, including Conoil Producing, Continental Oil, Eanageed Resources, and Energia Limited, with liabilities running into millions of dollars.
With the ultimatum in place, the committee emphasized that failure to comply would lead to further investigations and enforcement actions, reaffirming its commitment to ensuring that revenues meant for the Federation Account are duly remitted.
Source: Linda Ikeji Blog