The Nigerian House of Representatives has announced that seven prominent oil and gas companies have pledged to remit a total of $37,435,094.52 (approximately N58 billion) to the Federation Account by August 2025, acknowledging their outstanding debts. This development is part of an ongoing investigation by the Public Accounts Committee into the oil and gas sector’s financial practices.
Previously, the House had summoned 48 oil companies operating in Nigeria to appear before its Committee on Public Accounts, addressing a combined debt of N9.4 trillion. Among these companies are major industry players such as Shell Nigeria Exploration and Production Company, Chevron Nigeria Ltd, Total E&P Nigeria, Seplat Energy, Oando Oil Ltd, and Mobil Producing Nigeria Unlimited.
Detailed Histories of the Major Oil Companies Involved:
1. Shell Nigeria Exploration and Production Company (Shell Nigeria):
Shell’s involvement in Nigeria dates back to 1936 when it established a joint venture with the predecessor of British Petroleum. Oil exportation commenced in 1958. By 1973, the Nigerian government became a participant in the venture, gradually increasing its stake, while British Petroleum eventually exited. In 1979, the joint venture transformed into the Shell Petroleum Development Company of Nigeria, with the Nigerian National Petroleum Corporation (NNPC) holding a 55% stake, Shell 30%, Total 10%, and Eni 5%, with Shell remaining the operator. Throughout the 1990s and early 2000s, Shell faced significant challenges, including environmental protests and militant attacks, leading to a strategic shift towards offshore operations. By 2010, Shell had divested several onshore assets to focus on deepwater projects. Currently, Shell’s Nigerian operations produce approximately 266,000 barrels of oil equivalent per day, with a significant portion from offshore fields like the Bonga Field.2.
2. Chevron Nigeria Ltd
Chevron’s presence in Nigeria began in 1961. The company operates a joint venture with the NNPC, holding a 40% stake, while NNPC holds 60%. Historically, Chevron has been one of Nigeria’s largest oil producers, with operations primarily in the Warri region and offshore shallow waters. The company has faced challenges, including security concerns and environmental issues, but continues to be a significant player in Nigeria’s oil industry.
3. Total E&P Nigeria:
Total’s involvement in Nigeria dates back to 1962. The company operates a joint venture with the NNPC, holding a 40% stake, while NNPC holds 60%. Total has been involved in both onshore and offshore oil production in Nigeria, contributing significantly to the country’s oil output.
4. Seplat Energy:
Established in June 2009, Seplat Energy is a Nigerian independent oil and gas company formed through the partnership of Shebah Petroleum Development Company Limited and Platform Petroleum Joint Ventures Limited. In July 2010, Seplat acquired a 45% interest in three onshore producing oil and gas blocks in the Niger Delta (OMLs 4, 38, and 41) and was appointed operator. The company has since expanded its operations, including the acquisition of interests in OML 53 and OML 55. In December 2024, Seplat finalized its $1.28 billion acquisition of Mobil Producing Nigeria Unlimited from ExxonMobil, adding significant assets to its portfolio. cite🚢turn0search19🚶
5. Oando Oil Ltd:
Oando is a Nigerian indigenous energy group operating in the upstream, midstream, and downstream sectors. The company has grown through strategic acquisitions and expansions, becoming one of Nigeria’s largest indigenous energy companies. Oando has faced challenges, including financial and operational issues, but continues to play a significant role in Nigeria’s oil and gas industry.
6. Mobil Producing Nigeria Unlimited (ExxonMobil Nigeria):
Mobil Producing Nigeria Unlimited (MPNU), a subsidiary of ExxonMobil, has been operating in Nigeria since 1955. The company operates joint ventures with the NNPC, holding a 40% stake, while NNPC holds 60%. MPNU’s operations are primarily offshore, and it has been one of Nigeria’s largest oil producers. In December 2024, ExxonMobil completed the sale of its stake in MPNU to Seplat Energy for $1.28 billion. cite🚢turn0search19🚶
The commitment by these companies to remit outstanding debts marks a significant step towards addressing financial discrepancies in Nigeria’s vital oil and gas sector. The ongoing investigations by the House Public Accounts Committee aim to ensure transparency and accountability, reinforcing the importance of responsible financial practices in the industry.
LEGISLATIVE ARM INVOLVEMENT (The Nigerian House of Representatives)
The Nigerian House of Representatives continues its comprehensive investigation into the oil and gas sector’s financial practices. The Public Accounts Committee is scrutinizing the circumstances leading to the accumulation of debts by these companies and assessing compliance with financial regulations. The objective is to enhance transparency and accountability within the industry, ensuring that all operators adhere to their fiscal responsibilities.
Government Initiatives to Boost Revenue and effect Transparency
In parallel with these investigations, the Nigerian government is exploring various strategies to bolster national revenue and boosting revenue transparency. The Central Bank of Nigeria (CBN), under Governor Olayemi Cardoso, is considering issuing a diaspora bond in the United States in 2025, aiming to tap into the investment potential of Nigerians abroad. This initiative seeks to increase remittance inflows to $1 billion per month, a significant rise from the $600 million recorded in September 2024.
Historical Context of Legislative Oversight:
The Nigerian legislature has a history of addressing financial discrepancies in the oil and gas sector. For instance, during the 7th National Assembly, the House Committee on Finance, led by Rep. Abdulmumin Jibrin, investigated the non-remittance of N450 billion by the Nigerian National Petroleum Corporation (NNPC) to the Federation Account, highlighting ongoing concerns about financial management within the industry.
The current debt remittance commitments and legislative probes underscore the Nigerian government’s dedication to enforcing fiscal discipline in the oil and gas sector. These measures are anticipated to improve revenue collection, enhance public trust, and promote sustainable economic growth.
The situation remains dynamic, with further developments expected as the House of Representatives continues its investigations and the implicated companies work towards fulfilling their remittance commitments.
A Defining Moment for Nigeria’s Oil and Gas Industry
The ongoing probe by the Nigerian House of Representatives marks a defining moment in the country’s oil and gas industry. With seven major oil operators committing to remit $37.4 million by August 2025 and investigations continuing into the sector’s N9.4 trillion debt, the government is taking decisive steps to ensure financial accountability.
As Nigeria seeks to maximize revenue from its vast oil resources, the enforcement of transparency and fiscal responsibility will be crucial in restoring public confidence. The House of Representatives, through its Public Accounts Committee, has vowed to hold all defaulting companies accountable and prevent future revenue leakages.
Moving forward, industry stakeholders, government agencies, and international investors will be closely monitoring the situation. Whether this initiative will lead to a long-term solution to Nigeria’s persistent revenue shortfalls remains to be seen. However, one thing is clear: the era of unchecked financial practices in the oil and gas sector may be coming to an end.
