The House of Representatives has a plan to recover more than $30 billion in fees and bonuses from multinational oil companies that have merged in Nigeria. The resolution was passed after concerns were raised about the failure of regulatory agencies to track the financial proceeds from these mergers. The oil industry saw several mergers, buyouts, and takeovers in the 1990s. However, these mergers did not comply with the Petroleum Act, which states that oil licenses can only be granted to Nigerian citizens or companies incorporated in Nigeria. As a result, the new entities formed through these mergers were not eligible for licenses or leases under the Petroleum Act. The House is also concerned about the layoffs of Nigerian professionals and the loss of revenue due to the failure to properly sign-on the oil blocks inherited by the merging companies. The motion has been referred to the joint Committees on Finance, Public Assets, Justice, and Petroleum Resources for further action.
