Wednesday November 12, 2025 | The House of Representatives resolved to investigate the alleged non-declaration and non-remittance of proceeds from the sale of Liquefied Natural Gas equity to the Nigerian National Petroleum Company Limited as required by law.
The decision followed the adoption of a motion moved by Nnamdi Ezechi, representing Ndokwa East/Ndokwa West/Ukwuani Federal Constituency of Delta State, during plenary.
Ezechi, while presenting the motion, expressed concern over what he described as the opaque financial dealings surrounding the operations of NNPC LNG Limited, a subsidiary of NNPCL incorporated in the Cayman Islands in 2012 to handle LNG sales on behalf of the corporation.
He recalled that Nigeria LNG Limited was established in 1989 as a joint venture between NNPC Limited, Shell, TotalEnergies, and Eni, with NNPCL Limited holding a 49 per cent majority stake.
The lawmaker alleged that the company’s financial transactions and statements in the Cayman Islands have not been transparently disclosed to either NNPCL or the NLNG, raising questions about possible diversion of revenues and non-remittance of due dividends and taxes to the Federal Government.
He further claimed that deductions have allegedly been made from LNG proceeds, including those from “Equity LNG sales,” without due approval, disclosure, or remittance to the government. According to him, the development suggests possible financial irregularities and significant revenue loss to the nation.
Following debate on the motion, the House resolved to mandate its relevant committees to investigate the matter and report back with recommendations for legislative action.
In a related development, the House also directed its Committee on Host Communities to probe oil and gas companies operating in the Niger Delta over alleged failure to remit 3 per cent of their annual operating expenses to host communities as mandated by the Petroleum Industry Act, 2021.
This followed the adoption of a motion sponsored by Rivers lawmaker, Cyril Hart, who expressed concern that many oil companies have failed to establish the Host Communities Development Trust Fund as stipulated under Sections 235 and 236 of the PIA.
Hart noted that the refusal of oil firms to set up and fund the Trust Fund has deprived oil-bearing communities of crucial development interventions, thereby worsening poverty, environmental degradation, and social unrest in the region.
“The continued failure of these companies to comply with the provisions of the PIA has significantly hampered socio-economic growth and infrastructural development in the oil-producing areas,” Hart said.
The House mandated the Committee on Host Communities to summon relevant regulatory agencies and oil firms to provide explanations and ensure compliance with the law, while also directing both committees to report back within a specified time for further legislative consideration.
