The House of Representatives has commenced an investigation into ₦432 billion in unpaid oil revenue owed to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) by the Nigerian National Petroleum Company Limited (NNPCL) and several petroleum marketing associations.
The probe follows the release of the Auditor-General’s 2023 Annual Audit Report, which identified substantial revenue shortfalls within the nation’s oil and gas sector. The report points to significant arrears that have accumulated within the midstream and downstream segments of the industry.
According to the audit findings, the NNPCL and companies operating under the umbrella of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), Major Marketers Association of Nigeria (MOMAN), and Major Energy Marketers Association of Nigeria (MEMAN) are among the primary debtors. While the Auditor-General’s report specifically identified debts exceeding ₦392 billion owed to the NMDPRA, the House is investigating a broader figure of ₦432 billion.
Revenue recovery and regulatory impact
The investigation aims to establish the circumstances that led to the accumulation of these arrears and to ensure the recovery of funds intended for regulatory operations. The NMDPRA is tasked with overseeing the midstream and downstream petroleum sectors, and its ability to perform functions such as safety inspections, infrastructure monitoring, and industry standardisation depends on the effective collection of statutory levies and fees.
The indebtedness of major entities, including the NNPCL and the marketing associations—DAPPMAN, MOMAN, and MEMAN—presents a challenge to the regulator’s capacity to maintain strict oversight. Unremitted revenues can limit the authority’s resources, potentially affecting the efficiency of petroleum supply chain management and regulatory compliance across the country.
The discrepancy between the ₦392 billion cited in the Auditor-General’s report and the ₦432 billion figure under investigation by the House suggests that the probe will look into additional revenue streams or interest accruals that may not have been fully captured in the initial summary of the 2023 audit.
Industry analysts suggest that the resolution of these debts is critical for the fiscal stability of the petroleum sector, particularly as the NNPCL continues its transition into a commercially focused entity. Ensuring that all statutory obligations are met is a key component of the transparency measures being sought by the federal government.
The House of Representatives committee overseeing the matter is expected to summon officials from the NNPCL and representatives from the various marketers’ associations to account for the outstanding amounts. These parties will be required to present a clear roadmap for the settlement of the debts. The committee has not yet released a timeline for the commencement of the hearings.
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