The probe was launched by the House Public Accounts Committee following findings contained in the Auditor-General’s annual reports on unpaid petroleum-related obligations. Lawmakers are seeking to establish how the liabilities accumulated, how much has been paid, what remains outstanding and what measures have been taken to recover the money.
The Auditor-General’s 2023 report put the combined indebtedness of NNPCL and affected oil companies at ₦392.73 billion. NNPCL accounted for about ₦162.46 billion, while 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) accounted for about ₦230.27 billion.
The obligations relate to several petroleum-sector charges, including Balancing Allowance, National Transport Average and the one per cent Midstream and Downstream Gas Infrastructure Fund, as well as legacy obligations associated with importation, coastal transactions and credit arrangements.
The figure subsequently came under further scrutiny in the Auditor-General’s 2024 report. That report placed outstanding liabilities at ₦432.07 billion, although the figure cited in that report excludes NNPCL's indebtedness. This distinction is important because simply describing the entire ₦432 billion as money owed by NNPCL and oil companies would give readers an incomplete picture of how the latest figure was calculated.
Separate submissions from NMDPRA to the Public Accounts Committee showed that 146 oil companies under DAPPMAN, MEMAN and MOMAN owed the authority ₦327.53 billion as of 2025. The committee said some of the obligations date back to 2017 and have remained outstanding over several years.
The lawmakers are expected to examine the basis for the assessments, the periods covered, payments already made, outstanding balances and the steps taken by NMDPRA to recover the money. The inquiry will also consider why obligations accumulated for years without being fully recovered.
Chairman of the committee, Bamidele Salam, said the investigation was intended to establish the facts, protect government revenue and ensure that money due to the public is properly accounted for. He also warned companies and institutions summoned by the committee to appear with appropriate representatives and relevant records.
The investigation places additional attention on the effectiveness of revenue collection in Nigeria's petroleum sector. Large unpaid regulatory obligations can affect government receipts and raise questions about whether regulators have sufficient systems and enforcement mechanisms to identify, assess and recover money owed by industry operators.
At the same time, the existence of an outstanding liability does not by itself establish wrongdoing by every company listed in the figures. The parliamentary investigation is intended to determine the circumstances surrounding the debts, including whether the amounts are disputed, whether payments have been made since the figures were compiled and whether NMDPRA properly pursued recovery.
The probe therefore goes beyond determining who owes money. Its outcome could provide lawmakers with a clearer picture of how petroleum-sector revenues are assessed and collected, why substantial obligations remained unresolved for years and whether regulatory agencies need stronger mechanisms to prevent similar accumulation in the future.
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