Reps probe NNPC Ltd, Oil firms over ₦432bn NMDPRA debt

The House of Representatives Public Accounts Committee (PAC) has commenced an investigation into outstanding debts owed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) by the Nigerian National Petroleum Company Limited (NNPCL) and oil companies with the liabilities put at ₦432.07 billion.

The probe followed findings contained in the Auditor-General’s annual audit reports on unpaid regulatory and petroleum-related obligations.

The Auditor-General’s 2023 Annual Audit Report showed that NNPCL and oil companies operating under the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Major Marketers Association of Nigeria (MOMAN) and Major Energy Marketers Association of Nigeria (MEMAN) owed NMDPRA ₦392.73 billion.

NNPC Ltd accounted for ₦162.46 billion of the 2023 figure, while the affected oil companies owed ₦230.27 billion.

The liabilities arose from obligations including Balancing Allowance, National Transport Average, the one per cent Midstream and Downstream Gas Infrastructure Fund, as well as legacy debts linked to importation, coastal and credit transactions.

However, the Auditor-General’s 2024 report put outstanding liabilities at ₦432.07 billion, excluding NNPCL’s indebtedness.

Further submissions by NMDPRA to the committee showed that 146 oil companies operating under DAPPMAN, MEMAN and MOMAN owed the authority ₦327.53 billion as of 2025.

The committee noted that the outstanding obligations covered several years, with some dating back to 2017.

Chairman of the committee, Bamidele Salam, said the investigation would establish the circumstances surrounding the outstanding liabilities and determine the amount that had been recovered and what remained unpaid.

He said the committee would examine the basis on which the debts were assessed, the periods covered, payments made by the affected companies and measures taken by NMDPRA to recover the outstanding funds.

Salam also warned companies and institutions summoned by the committee to appear with the appropriate representatives and relevant records.

He said the probe was not intended to witch-hunt any company or institution but to protect public revenue and ensure that money due to government was properly accounted for.

The investigation is part of the National Assembly’s oversight of public revenue and petroleum-sector obligations.