Senate gives Seplat Energy, others 48-hour deadline

The Senate Public Accounts Committee has given Seplat Energy and three other oil companies, Network E&P Nigeria Limited, All Grace Energy Limited, and Aradel Energy Limited, a 48-hour deadline to appear before the committee and respond to queries related to audit reports from the Nigeria Extractive Industries Transparency Initiative (NEITI). The ultimatum was issued on Tuesday following the companies' repeated failure to attend previous meetings. The committee, led by Senator Ibrahim Hassan Dankwambo, warned that non-compliance could result in the full invocation of the National Assembly's legislative powers. The audit reports cover the years 2021 through 2023 and focus on the management of oil and gas revenues, as well as compliance with financial obligations by companies operating in Nigeria’s extractive sector. The committee’s actions are part of its broader efforts to scrutinize potential revenue leakages and ensure transparency in the industry. The companies were summoned to address discrepancies highlighted in the NEITI reports, which have sparked controversy among stakeholders. Senator Abdul Ningi, who chairs the committee, expressed frustration over the companies’ absence during the recent investigative hearing in Abuja. He criticized a letter from one of the firms, which claimed accountability to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) rather than the Senate panel. Ningi emphasized that the National Assembly holds constitutional authority to summon entities for explanations on matters under investigation. He cited Sections 88 and 89 of the 1999 Constitution, which grant lawmakers the power to invite individuals, organizations, and government agencies to clarify public matters. In support of the committee’s stance, Senator Shehu Kaka Lawan, representing Borno Central, urged the panel to enforce its constitutional powers against the companies that have ignored repeated invitations. He stated that the managing directors of the affected firms must appear before the committee on Thursday or face consequences. Similar ultimatums were extended to the managing directors of All Grace Energy, Aradel Energy, and Seplat Energy, following their absence during the proceedings. The committee’s enforcement of these deadlines reflects growing tensions between the legislature and private sector players in the energy space. Companies have historically resisted such scrutiny, often citing regulatory jurisdictional disputes. For instance, Network E&P Nigeria Limited’s representative reportedly argued that the NUPRC, not the Senate, was responsible for overseeing the firm’s operations. This claim was dismissed by the committee as a misinterpretation of legal frameworks governing oversight. Meanwhile, another company, Dubri Oil Company Limited, faced its own challenge during the hearings. A representative of the firm, Soyode Clement, disputed a reported $3.025 million debt, comprising $2.378 million in gas flare liabilities and $646,605.55 in oil production-related obligations. Clement explained that the figures stemmed from unresolved reconciliation issues between Dubri Oil and the NUPRC at the time the NEITI report was compiled. He asserted that the reconciliation had since been completed, and no outstanding debt existed. Supporting documentation was submitted to the committee for further evaluation. The committee confirmed it would thoroughly examine the evidence before deciding whether to clear Dubri Oil of the liability outlined in the NEITI report. These proceedings underscore the ongoing scrutiny of the oil and gas sector, with lawmakers seeking greater accountability from both companies and regulatory bodies. As the deadline approaches, the outcome of these confrontations could set a precedent for future interactions between the legislature and the energy industry.