House of Reps clears NUPRC of N32bn revenue leak scandal, non-compliance with TSA
Komolafe
Published By: Kazeem Ugbodaga
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has assured that it operates as a transparent and patriotic regulatory body, countering media reports of missing funds.
NUPRC Chief Executive, Engr. Gbenga Komolafe, stated this following the House of Representatives Committee on Public Accounts’ decision to clear the commission of any wrongdoing in the 2021 Auditor General’s Report.
The committee, led by Hon. Salam Bamidele, addressed allegations of unaccounted funds and discrepancies in NUPRC’s revenue records.
Some media reports alleged that the committee had uncovered revenue leakages amounting to N32.1 billion and identified instances of funds transferred to private bank accounts without proper adherence to the Treasury Single Account (TSA) protocols.
Other claims pointed to supposed discrepancies in transactions recorded in NUPRC’s financial data and Remita, totaling over N21.8 billion.
In response, Hon. Bamidele clarified that the committee had not accused NUPRC of misappropriation, emphasizing the committee’s role in safeguarding public interest.
“We are here to conduct a fair review, not to make premature conclusions. No findings affirm any loss of N32 billion,” he said, dismissing the media reports as inaccurate.
Representatives from the Auditor General’s office presented their findings, which highlighted pending royalties from operators as of 2021 rather than missing funds.
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The committee noted that of the $1.65 billion expected in royalties, $1.41 billion was received, leaving a balance of $253.9 million.
Explaining the commission’s role, Komolafe emphasized NUPRC’s adherence to the Petroleum Industry Act (PIA) 2021, underscoring that royalties are paid to accounts managed independently, such as those held by JP Morgan, to which NUPRC has no signatory rights.
He reiterated that the NUPRC’s mandate is to enforce remittance and not handle funds directly. “There is no N32 billion missing,” he asserted, emphasizing that NUPRC’s transparency has reinforced investor confidence in Nigeria’s oil sector.
Komolafe highlighted recent developments as evidence of this confidence, citing the pledge by TotalEnergies CEO Patrick Pouyanne to expand investments in Nigeria.
Komolafe attributed this renewed interest to NUPRC’s regulatory predictability, which he said fosters a stable environment for international oil companies.
Addressing concerns over outstanding royalties, Komolafe stated that the NUPRC’s role includes continuous reconciliation efforts, underscoring that production processes and payments are ongoing.
He explained that while the commission takes steps to recover due funds, its enforcement powers are regulated by the PIA, which dictates when funds are deemed collectible and the extent of penalties that can be applied.
To reconcile the findings, the Public Accounts Committee established two sub-committees, one led by Hon. Jeremiah Umaru, to review the figures and further investigate the matter.
