The House of Representatives has directed the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) to provide a detailed account of oil production, crude sales, and other upstream petroleum activities in the country.
This directive was issued during an interactive session between the House Committee on Finance and the Committee on National Planning in Abuja.
The session focused on the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
“We Need Full Transparency”
The directive followed a presentation by the NUPRC’s Executive Commissioner for Economic Regulation & Strategic Planning, Mr. Babajide Fasina.
Fasina, who was represented by the NUPRC Chief Executive Officer, Mr. Gbenga Komolafe, explained the commission’s revenue sources and expenses.
He outlined that NUPRC generates income from oil and gas royalties, concession rentals, fines, levies, and other miscellaneous revenues.
He also highlighted the commission’s 4% Cost of Revenue Collection (CORC), which amounted to ₦114.84 billion in 2023, compared to ₦114.38 billion in 2022.
This revenue is credited to the Federation Account, with the commission receiving its share from the Federal Allocation Account Committee (FAAC).
Revenues and Expenses Under Scrutiny
Fasina revealed that while the commission’s internally generated revenue (IGR) dropped significantly from ₦30.08 billion in 2022 to ₦1.44 billion in 2023, its expenses have continued to rise.
Personnel costs accounted for the bulk of the expenditure, reaching ₦82.35 billion, which represents 70.19% of the total expenses of ₦117.33 billion.
Overhead costs amounted to ₦31.63 billion, while non-tax remittances dropped from ₦3.67 billion in 2022 to ₦1.77 billion in 2023.
Other expenses included amortization and depreciation, which stood at ₦246.66 million and ₦1.33 billion, respectively.
“How Can You Justify ₦88 Billion on Salaries?”
Rep. James Faleke, Chairman of the House Committee on Finance, expressed shock at the commission’s personnel and overhead expenditures.
“I’m wondering what type of organization you have,” Faleke said.
“You are paying ₦88 billion as salaries. How many staff do you have?”
His concerns were heightened by the high personnel cost relative to the commission’s performance and the drop in internally generated revenue.
“Account for Every Drop of Oil”
In response to the presentation, Faleke issued a stern directive for the NUPRC to provide granular details of Nigeria’s oil production.
“You will have to come back with all the records of all the wells that produce oil, litre by litre, per day,” he stated.
“How much oil do we get from here every day?”
Faleke emphasized the need for transparency, especially in a sector critical to Nigeria’s economy.
Concerns Over Accountability
The call for detailed records reflects broader concerns about accountability and transparency in Nigeria’s oil and gas sector.
As the primary source of government revenue, the industry has faced criticism for alleged inefficiencies and corruption.
Observers say accurate data on oil production and sales is crucial for effective fiscal planning and the success of the Medium Term Expenditure Framework.
NUPRC Defends Its Operations
While the committee expressed dissatisfaction, NUPRC defended its operations, citing rising costs and increased regulatory responsibilities.
Fasina stated that the commission plays a critical role in ensuring compliance and collecting revenues on behalf of the government.
However, critics argue that such responsibilities should not result in disproportionately high operating costs.
Lawmakers Demand Accountability
The directive from the House underscores lawmakers’ determination to scrutinize revenue-generating agencies.
The oil and gas sector has long been viewed as a cornerstone of Nigeria’s economy, but inefficiencies in its management have raised concerns about the nation’s financial stability.
With the 2025-2027 fiscal plan underway, the House is keen to ensure that every kobo generated from oil production is accounted for.
