The Nigerian House of Representatives has instructed the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) to provide a detailed account of the nation’s oil production, crude oil sales, and other upstream petroleum activities.
This directive was issued during an ongoing interactive session in Abuja between lawmakers and key agencies on the 2025-2027 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP). The session, hosted by the House Committee on Finance in collaboration with the National Planning Committee, focused on ensuring transparency in government revenue generation and spending.
Insights from the NUPRC Presentation
The NUPRC’s Executive Commissioner for Economic Regulation and Strategic Planning, Mr Babajide Fasina, presented on behalf of the agency, although the Chief Executive Officer, Mr Gbenga Komolafe, was present alongside other senior officials.
According to Mr Fasina, the NUPRC collects revenue from multiple streams, including:
- Oil and gas royalties
- Concession rentals
- Penalties for gas flaring
- Miscellaneous revenues such as fines, levies, and license renewal fees
- Signature bonuses for new agreements
He revealed that the commission also retains 4% of the revenue it collects for the Federal Government, referred to as the Cost of Revenue Collection (CORC). In 2023, this amounted to ₦114.84 billion, compared to ₦114.38 billion in 2022.
Revenue and Spending Breakdown
The presentation provided a snapshot of the commission’s financial performance:
- Revenue Generation
- The NUPRC collected a total of ₦14.34 trillion on behalf of the Federal Government in 2023.
- Of this, ₦1.44 billion came from internal sources, such as registration fees and recoveries, compared to ₦30.08 billion in 2022. This decline highlights challenges in internal revenue collection.
- Expenditure Patterns
- The commission’s total spending rose to ₦117.33 billion in 2023, an increase of 10.83% from 2022.
- Personnel costs accounted for the majority of expenses, totalling ₦82.35 billion or 70.19%.
- Overhead costs followed with ₦31.63 billion, while capital expenditure was pegged at ₦2.82 billion.
- Non-Tax Remittances
- Non-tax revenues dropped significantly, from ₦3.67 billion in 2022 to ₦1.77 billion in 2023.
Lawmakers Raise Concerns
James Faleke, Chairman of the House Committee on Finance, expressed dissatisfaction with the commission’s high personnel costs.
“You are paying ₦88 billion in salaries. How many staff do you have? This spending pattern raises serious concerns,” Mr Faleke questioned during the session.
He further directed the NUPRC to provide comprehensive data on Nigeria’s oil production, including detailed records of every operational oil well, daily production figures, and revenue from each site.
“This is public money, and we need absolute clarity. Bring the records of every well, showing litre-by-litre production per day. How much oil are we producing, and where does it go?” he demanded.
Next Steps
The NUPRC has been tasked to return to the House with all requested documentation to ensure transparency and accountability in the country’s upstream oil sector.
This session underscores the National Assembly’s determination to address discrepancies in Nigeria’s oil revenue and ensure that every naira is accounted for.
Broader Implications
The oil and gas sector is Nigeria’s economic backbone, contributing over 70% of government revenue. However, concerns over opacity in revenue generation and allocation persist. By demanding these details, the House aims to hold agencies accountable and curb revenue leakages, paving the way for improved fiscal planning under the 2025-2027 MTEF.
As Nigeria seeks to boost its crude oil output and maximise earnings, transparency and accountability in the upstream sector will remain crucial.
