The House of Representatives’ Public Accounts Committee (PAC) has achieved a significant victory in its ongoing pursuit to recover outstanding revenue owed to the Federation Account. Their efforts have yielded a substantial recovery of $19,241,109.35 (equivalent to approximately N28.7 billion) from two major oil companies, marking a crucial step in plugging revenue leakages and bolstering the nation’s finances. This recovery underscores the committee’s commitment to its mandate and its effectiveness in holding entities accountable for their financial obligations to the Federation. This success builds on previous recoveries and sets the stage for further investigations into other companies identified as owing substantial sums. The committee’s focus remains firmly on ensuring transparency and accountability in the management of public funds.
The recovered funds stem from outstanding liabilities identified in the 2021 Audit Report, which revealed a staggering $1.7 billion owed by 45 oil companies. The committee’s investigation, spearheaded by Chairman Bamidele Salam, has targeted these companies, leading to the recent successful recoveries from Chorus Energy Limited and Seplat Production Development Limited. Chorus Energy settled its liability with a payment of $847,623 (N1.2 billion), while Seplat Production Development Limited fully discharged its obligation with a payment of $18.39 million (N27.6 billion). The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been duly notified of these payments and is undertaking final verification. These initial recoveries represent a significant step forward and demonstrate the potential for recovering a substantial portion of the outstanding $1.7 billion.
The committee’s investigation has spurred proactive engagement from other companies implicated in the audit report. Shoreline Natural Resources Ltd, which owed $100.28 million, had already paid $30 million prior to the commencement of the investigation and has proposed a structured repayment plan for the outstanding balance. This proactive approach signifies a growing awareness among these companies of the committee’s resolve and the importance of fulfilling their financial obligations. Furthermore, the NUPRC’s report regarding Seplat Energy Producing Nigeria Unlimited (formerly Mobil Producing) indicated a credit balance, demonstrating that some companies are not only meeting their obligations but are also maintaining a positive financial standing with the government.
The PAC’s commitment extends beyond just oil companies. The committee has broadened its scope to include investigations into excessive charges and unremitted Value Added Tax (VAT) related to transactions processed through the Remita platform. This investigation stems from a 2024 House mandate to probe revenue leakages and non-remittance of funds by Ministries, Departments, and Agencies (MDAs). This expanded mandate underscores the House’s commitment to ensuring comprehensive financial accountability across all sectors. As a result of the committee’s investigation, significant recoveries have been made from several banks, highlighting the pervasive nature of financial irregularities and the committee’s vigilance in uncovering them.
The investigation into Remita-related transactions uncovered a complex web of excessive charges and unremitted VAT, revealing the need for greater scrutiny of financial practices within government agencies and their interactions with third-party service providers. 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 between March and October 2015. While a portion of these funds had been refunded, a substantial sum, coupled with accumulated interest, remained outstanding. The PAC’s intervention has led to further recoveries from Guaranty Trust Bank and Zenith Bank, demonstrating the effectiveness of its investigative powers.
The PAC’s success in recovering these funds underscores the critical role of legislative oversight in ensuring transparency and accountability in the management of public finances. Chairman Bamidele Salam has emphasized the committee’s unwavering commitment to utilizing all constitutionally sanctioned measures to recover the remaining outstanding debts from the 38 oil companies still under investigation. This commitment, coupled with the ongoing investigations into Remita-related transactions, signals a strong message that the House of Representatives will diligently pursue all avenues to ensure that funds due to the Federation are recovered and that those responsible for revenue leakages are held accountable. The committee’s actions serve as a powerful deterrent against future financial irregularities and demonstrate its dedication to safeguarding public resources.
