Abuja, Nigeria – The House of Representatives has issued a three-day ultimatum to several oil companies that failed to appear before its ad hoc committee investigating a N9.4 trillion debt owed to the Federal Government. The companies, including Waltersmith Petroman Limited, Addax Petroleum Exploration Nigeria Ltd, AITEO Group, Britannia-U, and two others, shunned the committee’s invitation for an investigative hearing on Monday.
Out of the nine oil companies summoned, only Belema Oil Producing Ltd honored the invitation. However, the company’s team, led by its Managing Director, Ahmad Sambo, was asked to return on Tuesday due to the late submission of required documents.
The investigation stems from a report by the Office of the Auditor General of the Federation (OAuGF), which was submitted to the House’s Public Accounts Committee (PAC). The report revealed that the N9.4 trillion debt comprises unpaid royalties, concession rentals, gas flare penalties, and other obligations arising from production sharing contracts, repayment agreements, and modified carry arrangements.
In a notice issued on Sunday, the lawmakers had invited Addax Petroleum Exploration Nigeria Ltd, AITEO Group, All Grace Energy, Amalgamated Oil Company Nigeria Limited, Amni International Petroleum Development Company Limited, Belema Oil Producing Ltd, Bilton Energy Limited, Britannia-U, and Waltersmith Petroman Limited to appear before the committee from Monday, March 3, to Friday, March 7, 2025.
The committee expressed disappointment at the absence of the defaulting companies and warned that failure to comply with the new ultimatum would result in severe consequences. The lawmakers emphasized the importance of recovering the debt, which is critical to addressing the country’s revenue shortfalls and funding developmental projects.
The investigation highlights the Nigerian government’s ongoing efforts to hold oil companies accountable for their financial obligations. The oil and gas sector remains a cornerstone of the nation’s economy, and the recovery of these funds is expected to significantly boost government revenue.
As the deadline approaches, stakeholders are closely monitoring the situation to see how the defaulting companies will respond and whether the House of Representatives will enforce stricter measures to ensure compliance. The outcome of this investigation could have far-reaching implications for the oil industry and Nigeria’s fiscal stability.