NUPRC Debunks Alleged Non-remittance of N151.121bn into Federation Account

Emmanuel Addeh in Abuja and Peter Uzoho in Lagos

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has rebuffed a media report alleging that a 2022 Audit Report had indicted the commission over its purported non-remittance of N151.121 billion into the Federation Account.

The NUPRC in a statement issued yesterday, in Abuja, signed by its Head of Public Affairs and Corporate Communications, Mrs. Olaide Shonola, stated that the media report clearly showed a lack of understanding of the composition and responsibility of the commission.

The NUPRC argued that the audit report under reference was that of 2020, explaining that the commission was a creation of the Petroleum Industry Act (PIA) of 2021 and was inaugurated in October 2021.

The upstream regulator added that it is a regulatory body and not directly involved in operational activities.

The NUPRC maintained that it therefore smacked of professional sloppiness to link it by whatever definition to a report of 2020, adding that it was also mischievous to claim that the commission did not remit funds it never received.

The Gbenga Komolafe-led regulator further explained that funds, including royalties, received by licensees or operators including the Nigerian National Petroleum Company Limited (NNPCL) were meant to be remitted directly to the Federation Account and not through the NUPRC.

The commission noted that the operators were responsible for receiving and remitting funds from oil and gas sector operations to the designated accounts.

The statement read, “The attention of the NUPRC has been drawn to a rather mischievous story with the headline ‘Audit report indicts NUPRC, Customs for non-remittance into Federation Account.’

“The story, which claims that a 2022 Report from the office of the Auditor General of the Federation indicted the Nigerian Customs Service and the NUPRC for non-remittance of billions of Naira, clearly shows a lack of understanding of the composition and responsibility of the NUPRC.

“The newspaper quoted the report as indicating that N151.121 billion deducted by the Nigeria National Petroleum Company Limited (NNPCL) on behalf of NUPRC (formerly Department of Petroleum Resources) as royalty for 2020 was not captured in the federation account.

“In the first place, the audit report under reference is that of the Year 2020. The NUPRC is a creation of the Petroleum Industry Act (PIA) of 2021 and was inaugurated in October 2021. It is a regulatory body and not directly involved in operational activities.

“It therefore smacks of professional sloppiness to link NUPRC by whatever definition to a report of 2020. It is also mischievous to claim that NUPRC did not remit funds it never received.”

It added: “Funds, including royalties, received by licensees (all operators, NNPCL inclusive) are meant to be remitted directly to the Federation Account. It does not pass through NUPRC.

“They are responsible for receiving and remitting funds from oil and gas sector operations to the designated accounts.”

The commission pointed out that though as a regulator, it subsequently made efforts for the licensees to remit all outstanding funds in their custody to the Federation Account, the reasons for neglect, failure or refusal to do so were directly within their respective purview.

The regulator argued that it was therefore an act of mischief to lay the fault on NUPRC or blame the commission for not remitting funds it never received.

“It must be stated emphatically that the NUPRC cannot bear vicarious indictment for a process outside its domain, as it does not receive and is not in a position to fail or refuse remittance”, the statement concluded.