Reps probe NNPCL, oil firms over ₦432bn NMDPRA debt

The House of Representatives Committee on Public Accounts is investigating the unsettled regulatory debts owing to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) from the Nigerian National Petroleum Company Limited (NNPCL) and other oil companies.

The debt has since increased to ₦432.07 billion after complaints of unsettled obligations from the petroleum industry to the regulatory body.

The probe was triggered by findings contained in the Auditor-General’s annual audit reports, which highlighted outstanding payments due to the NMDPRA.

According to the Auditor-General’s 2023 Annual Audit Report, NNPCL and other oil companies were jointly indebted to the regulatory authority to the tune of ₦392.73 billion.

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

The committee said the outstanding obligations covered several years, with some dating back to 2017, raising concerns over the effectiveness of the mechanisms used by the regulatory authority to assess, collect and recover the funds.

In a statement issued on Wednesday, the Chairman of the committee, Bamidele Salam, said the probe was aimed at establishing the facts behind the outstanding liabilities and ensuring that all government revenue due from the affected entities was accounted for and recovered.

He warned companies and institutions summoned by the committee against failing to appear with the appropriate representatives and relevant records.

“Any company invited by this committee must respect the people’s parliament of the Federal Republic of Nigeria by honouring the summons with appropriate representation and all relevant documents. We are not here to witch-hunt anybody; our responsibility is to establish the facts, protect public revenue and ensure that every naira due to government is properly accounted for,” Salam said.

The committee is expected to examine the basis on which the debts were assessed, the periods covered, payments made by the affected companies, outstanding balances and actions taken by the NMDPRA to recover the funds.

It will also seek explanations on “why liabilities accumulated over a number of years remained outstanding and whether enforcement measures were deployed against defaulting companies.”

The probe comes amid heightened scrutiny of revenue generation, collection and remittance in Nigeria’s petroleum industry following the implementation of the Petroleum Industry Act, which overhauled the legal and regulatory framework governing the sector.

The NMDPRA was established under the PIA to regulate Nigeria’s midstream and downstream petroleum operations. Its responsibilities include the regulation of petroleum product processing, transportation and distribution, domestic gas operations, infrastructure and other activities.