A brewing storm of debt and accountability is rocking Nigeria’s oil industry, as three major companies, Chorus Energy, Dubril Oil Company Limited, and Belema Oil, admitted to owing a staggering $5.5 million to the Federation Account.
Their confessions came under the intense scrutiny of the House of Representatives Public Accounts Committee on Tuesday, following revelations from the Auditor General for the Federation’s report.
The drama unfolded in a packed hearing room, where the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), represented by Mr. Balarabe Haruna, laid bare the extent of the companies’ financial obligations. The figures were damning: Chorus Energy owed $814,680.06; Dubril Oil’s debt reached $3,025,193.71, and Belema Oil admitted to an outstanding $1,703,617.68.
But these weren’t just cold numbers. They told a tale of declining production, operational failures, and unkept promises. Dubril Oil’s Acting Managing Director, identified only as Mr. Clement, painted a bleak picture of the company’s struggle. Production had plummeted in early 2024, and efforts to revive output through well workovers had fallen short. Despite the setbacks, Clement remained hopeful, assuring the committee that new drilling projects were on the horizon and that debts would be cleared by the third quarter of 2025.
For Belema Oil, the crisis had been years in the making. Managing Director Ahmad Sambik described an ongoing nightmare since August 2022. Massive leakages in the evacuation pipeline system led to the loss of nearly 5 million barrels of crude oil. This catastrophic shutdown made it impossible for the company to meet its financial obligations.
Chorus Energy’s Chief Financial Officer, Oluseyi Simon, took a different approach, emphasizing the company’s commitment to paying its dues. He revealed that Chorus Energy had already paid $5.3 million in 2024 alone and promised to clear the remaining balance by the end of the month.
The frustration in the room was palpable as the chairman of the investigation subcommittee, Akinlade Isaq, condemned the companies’ failure to meet their financial responsibilities. “Paying off these outstanding debts is not just a matter of financial responsibility; it is a critical step toward improving governance in Nigeria,” Isaq declared.
In a decisive move, the committee issued a two-week ultimatum for the oil companies to settle their debts. The warning was clear—those who failed to comply would face severe repercussions.
The investigation also cast a wider net, exposing other defaulters in the industry. Conoil Producing was revealed to owe $4,592,908.62, while Continental Oil’s staggering debt stood at $57,053,842.22. Enageed Resources and Energia Limited also found themselves in the spotlight, with debts of $15,001,089.91 and $19,260,982.13, respectively.
Source: Ripples
