A Showdown in the Oil Sector
Nigeria’s House of Representatives is turning up the heat on oil companies accused of owing the Federal Government a staggering N9.4 trillion. In a dramatic move, lawmakers have issued a three-day ultimatum to several oil firms that snubbed an investigative hearing into the massive debt. This high-stakes confrontation could have far-reaching implications for Nigeria’s oil and gas industry—and the nation’s economy.
The Defiant Oil Companies: Who’s on the Hot Seat?
The spotlight is on six major oil companies that failed to show up for the hearing:
Waltersmith Petroman Limited
Addax Petroleum Exploration Nigeria Ltd
AITEO Group
Britannia-U
And two others
Out of the nine companies summoned, only Belema Oil Producing Ltd showed up. However, even they weren’t off the hook—their team, led by Managing Director Ahmad Sambo, was sent back due to late submission of required documents. Talk about a rocky start!
Why the Investigation? Unpaid Bills and Broken Promises
The probe was triggered by a damning report from the Auditor General of the Federation (OAuGF), which revealed a jaw-dropping N9.4 trillion in unpaid obligations. These include:
Unpaid royalties
Concession rentals
Gas flare penalties
Other financial obligations tied to production sharing contracts and repayment agreements
The report was handed over to the Public Accounts Committee (PAC), prompting the House of Representatives to take action. The lawmakers are determined to recover every kobo owed to the Nigerian government.
The Three-Day Ultimatum: No More Games
Frustrated by the no-shows, the ad hoc committee issued a three-day ultimatum to the defaulting companies. The message is clear: appear before the House and account for the debts, or face the consequences. The hearings are scheduled to run from March 3 to March 7, 2025, giving the companies a tight window to comply.
What’s at Stake?
This isn’t just about recovering money—it’s about accountability and transparency in Nigeria’s oil sector. The N9.4 trillion debt represents a significant loss to the nation’s economy, and the lawmakers are determined to ensure that such lapses don’t go unchecked. The outcome of this investigation could reshape the relationship between the government and oil companies, setting a precedent for future dealings.
What Happens Next?
If the companies fail to comply with the ultimatum, they could face legal or regulatory actions. For now, all eyes are on the House of Representatives as they push for answers—and accountability—in one of the biggest financial scandals in Nigeria’s recent history.