By Sandra Michaels
The House of Representatives Public Accounts Committee (PAC) has commenced a comprehensive investigation into the staggering ₦432.8 billion outstanding indebtedness of oil companies and the Nigerian National Petroleum Company Limited (NNPCL) to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The legislative probe is sequel to damning findings contained in the annual audit reports of the Auditor-General for the Federation, which flagged massive financial liabilities arising from various statutory, regulatory, and petroleum-related obligations.
According to the 2023 Annual Audit Report of the Auditor-General, the NNPCL, alongside oil marketers operating under the aegis of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and other industry players, accumulated a debt profile standing at ₦392.7 billion during the period under review.
A breakdown of the debt portfolio reveals that the liabilities stem from unpaid obligations, including the Balancing Allowance, National Transport Average, the one percent Midstream and Downstream Gas Infrastructure Fund (MDGIF), as well as legacy debts tied to petroleum product imports, coastal operations, and credit transactions.
Declaring open the investigative hearing, the Chairman of the Committee, Honourable Bamidele Salam, vowed that the parliament would leave no stone unturned in ensuring that all affected corporate entities and public institutions fully account for their financial obligations to the federation.
Salam warned that the committee would not tolerate any form of disrespect from summoned institutions, insisting that corporate bodies and government agencies must accord the National Assembly the constitutional reverence it deserves by honoring parliamentary summons and providing unhindered access to relevant financial records.
“We are going to meticulously scrutinize these records, examine the exact basis of these outstanding liabilities, determine the timeframes covered, verify payments made so far, ascertain the balances still outstanding, and evaluate the concrete steps taken by the regulatory authorities to recover these debts,” Salam stated.
The lawmaker reaffirmed the unwavering commitment of the PAC to exercise its constitutional oversight mandate to the letter, stressing that public revenues must be aggressively tracked, properly accounted for, and remitted to the public treasury to shore up the nation’s revenue base.
The committee has consequently directed all relevant stakeholders, regulatory bodies, and indebted corporate entities to make available comprehensive documentation concerning their transactions with the NMDPRA as the hearing progresses.
