The Senate Public Accounts Committee (PAC) has issued a 48-hour ultimatum to Seplat Energy, Network E&P Nigeria Limited and two other oil companies to appear before the committee and respond to queries raised in the 2021, 2022 and 2023 audit reports of the Nigeria Extractive Industries Transparency Initiative (NEITI).
The committee, chaired by Senator Ibrahim Hassan Dankwambo, warned that the affected companies could face the full force of the National Assembly’s legislative powers if they fail to honour the invitation.
The decision was taken after committee members expressed concern over the companies’ failure to appear before the Senate panel to provide explanations on issues identified in the NEITI audit reports.
Senate Questions Companies’ Failure to Appear
The committee’s action followed the continued absence of representatives of the companies from its proceedings.
Senator Abdul Ningi was the first to call for sanctions against the companies, particularly after Network E&P Nigeria Limited wrote to the committee explaining that it was accountable to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Ningi described the letter as “disturbing and provocative”, arguing that the company could not use its regulatory relationship with the NUPRC as a reason to disregard a summons from the National Assembly.
Senate Cites Constitutional Powers
Ningi reminded the committee that the National Assembly has constitutional authority to summon individuals, organisations and government agencies when seeking information on matters under investigation.
‘Sections 88 and 89 of the 1999 Constitution empower the National Assembly to invite anybody or agency for explanations on issues raised against them’.
The provisions cited by the senator give the National Assembly powers to conduct investigations and require persons or organisations relevant to an inquiry to provide information and explanations.
Network E&P Ordered To Appear
Following the deliberations, the committee specifically directed the Managing Director of Network E&P Nigeria Limited to appear before it on Thursday.
The committee warned that failure to comply with the directive could result in the invocation of its legislative powers against the company.
The order came after lawmakers rejected the explanation contained in the company’s correspondence regarding its accountability to the NUPRC.
Seplat And Other Oil Firms Also Summoned
Similar directives were issued to the managements of All Grace Energy Limited, Aradel Energy Limited and Seplat Energy.
The committee noted that representatives of the three companies had also failed to appear before the panel to address questions arising from the NEITI audit reports.
The companies have therefore been given the same opportunity to appear before the committee and respond to the issues raised against them.
Why The NEITI Reports Matter
The NEITI reports examine activities and financial transactions within Nigeria’s extractive industries, including the oil and gas sector.
The Senate committee’s interest in the reports reflects its responsibility to examine public-sector financial accountability and ensure that issues identified through official audits receive appropriate explanations from the organisations concerned.
In this case, the PAC is seeking direct responses from the affected oil companies rather than relying solely on written submissions.
What Happens If The Companies Fail To Appear?
The Senate committee has warned that companies that ignore the 48-hour ultimatum could face legislative action.
Senator Shehu Kaka Lawan, representing Borno Central, supported the move and urged the committee to use its constitutional powers against the managements of companies that had failed to honour previous invitations.
For Network E&P, the committee has already fixed Thursday for the Managing Director’s appearance, while similar directives have been issued to the managements of All Grace Energy, Aradel Energy and Seplat Energy.
The immediate focus is now on whether the four companies will appear before the Senate Public Accounts Committee and provide explanations to the queries contained in the NEITI audit reports.
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