Reps Public Accounts C'ttee Recovers ₦28.7B, ₦199.3 from Oil Companies, VAT from Remita

By Dansu Peter  The House of Representatives, through its Public Accounts Committee (PAC), has achieved a major breakthrough in the recover...

By Dansu Peter 

The House of Representatives, through its Public Accounts Committee (PAC), has achieved a major breakthrough in the recovery of outstanding revenues, securing a total of $19.24 million (approximately ₦28.7 billion) from two oil companies indebted to the Federation Account.

The recovery follows a detailed investigation based on findings from the 2021 Audit Report, which revealed that 45 oil companies collectively owed $1.7 billion in outstanding liabilities.

According to the Committee’s report:

• Chorus Energy Limited settled its outstanding liability with a payment of $847,623 (₦1.2 billion) on March 11, 2025.
• Seplat Production Development Limited fully discharged its obligations by remitting $18.39 million (₦27.6 billion) between March 10 and March 14, 2025.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been provided with evidence of these payments for final verification.

Additionally, Shoreline Natural Resources Ltd. had made a $30 million payment towards its $100.28 million debt before the investigation began and has requested a structured repayment plan for the remaining balance.

During the Committee’s proceedings, a representative of NUPRC, Balarabe Haruna, confirmed that after recent reconciliations:

• Seplat Energy Producing Nigeria Unlimited (formerly Mobil Producing) now holds a credit balance of $211,911.09 for crude oil royalty, $33.01 million for gas flare penalties, and $163,046.40 for concession rentals, with no outstanding liabilities.

The Committee commended Seplat Energy for its prompt compliance with financial obligations and reaffirmed its commitment to recovering outstanding debts from the remaining 38 oil companies still under investigation.

The report also confirmed that the following companies have fully settled their obligations and are no longer financially liable:

• Amalgamated Oil Company Nigeria Ltd
• Seplat Energy
• Shell Exploration and Production
• Shell Petroleum Development Company

₦199.3 Million Recovered from Remita Investigation

In a separate development, the House Public Accounts Committee successfully recovered ₦199.3 million as part of an ongoing probe into excessive charges and unremitted VAT on transactions processed through the Remita platform between 2015 and 2022.

The investigation was launched in response to a House resolution in 2024, based on a motion sponsored by Hon. Jeremiah Umaru, mandating PAC to probe revenue leakages and non-remittance of funds by Ministries, Departments, and Agencies (MDAs) via Remita.

Key findings from the probe include:

• The Federal Government had previously directed value chain providers—including banks, Remita, and the Central Bank of Nigeria (CBN)—to refund 1% transaction charges collected via Remita between March and October 2015.
• While ₦7.63 billion had been refunded, an outstanding sum of ₦1.98 billion remains unpaid.
• Applying the prevailing Monetary Policy Rate (MPR) of 27.25%, the accumulated interest on the unpaid sum amounts to ₦4.84 billion, bringing the total refundable amount to ₦6.83 billion.

Following the Committee’s intervention:

• Guaranty Trust Bank (GTB) settled ₦40.6 million in overdue charges for the period between March and October 2015.
• Zenith Bank remitted ₦126.1 million in unremitted VAT.
• GTB paid an additional ₦32.6 million in VAT obligations.

Despite these recoveries, several value chain providers are yet to comply with VAT remittance requirements, prompting further scrutiny from the Committee.

Speaking on the recoveries, Rep. Bamidele Salam, Chairman of the House Public Accounts Committee, emphasized the importance of legislative oversight in ensuring accountability and transparency in public finance management.

"These recoveries demonstrate the effectiveness of the oversight function of the National Assembly in ensuring accountability and transparency in the management of public funds. We will continue to engage with relevant institutions and deploy all necessary legislative tools to recover outstanding debts and prevent revenue leakages. Our objective is to ensure that every kobo due to the Federation is accounted for and remitted accordingly," he stated.

The House of Representatives, through the PAC, remains steadfast in its mission to strengthen financial discipline, enhance institutional accountability, and safeguard public resources in the national interest.