Nigeria – Two agencies regulating Nigeria’s petroleum industry could not properly account for over N313 billion, leading to significant revenue losses for the government, according to the latest report by the Auditor General of the Federation.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) are the agencies indicted in the report. The 2021 audit, which contains interim observations, highlights irregularities such as uncollected royalties, unjustified deductions, and discrepancies in financial records.
Among the findings, $254 million in outstanding royalties remained unremitted to the Federation Account, with no justifications provided. Additionally, N204 billion was deducted by the NNPCL from oil royalties, citing “priority projects” without supporting documentation.
In terms of gas and oil revenues, $1.74 billion in oil royalties and $496 million in gas flare penalties were not paid by operators. Similarly, N28.6 billion owed by NNPCL Retail and N13.5 billion owed by marketers as bridging allowances were uncollected.
Furthermore, irregular financial records were noted, with marketers’ indebtedness reports showing a variance of N1.08 billion. The audit attributed these lapses to weak internal controls in both agencies.
Responses from the regulators failed to address the issues adequately. The Auditor General has directed the agencies’ heads to recover the outstanding amounts and take measures to prevent future irregularities. The report raises concerns about governance and accountability in Nigeria’s petroleum sector.
By Damilola Adeleke| January 9, 2025
Adeleke Damilola (ACTION) is a versatile content writer with expertise in news writing and a seasoned media professional and broadcast specialist. Currently serving as News Editor for DNews Info, Damilola is also the CEO of the ACTION brand, committed to shaping lives and establishing a legacy of excellence for present and future generations.
Discover more from DnewsInfo
Subscribe to get the latest posts sent to your email.
