NUPRC’s Efficiency Crucial to Nigeria’s Economic Sufficiency, Says Advocacy Group

Regulatory Enforcement Under PIA Gains Momentum

As Nigeria implements reforms in its oil and gas sector through the Petroleum Industry Act (PIA), the Centre for Fiscal Transparency in Natural Resources (CFTNR) has emphasized the pivotal role of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in ensuring transparency for long-term economic stability.

House of Representatives Directs Debt Recovery

The CFTNR’s statement comes after the House of Representatives ordered OML18 Resources Limited to remit $4.02 million to the Federation Account. This directive resulted from NUPRC’s investigations and its commitment to institutional accountability under the PIA framework.

OML18 Resources, formerly known as Sahara Field Production Ltd, is among 45 oil companies identified in NUPRC’s audit report as owing a combined $1.7 billion in unpaid royalties, gas flare penalties, and other liabilities to the Nigerian government.

Strict Compliance Timeline Issued

The House Committee on Public Accounts, chaired by Bamidele Salam, has given OML18 Resources:

• 5 days to pay 20% ($4.02 million) of its confirmed debt
• 14 days to reconcile full outstanding obligations with the asset operator

NUPRC confirmed the company’s debt includes $17.37 million in crude oil royalties, $2.86 million in gas flare penalties, and N173.7 million in gas sales revenue – all acknowledged by the company during hearings.

CFTNR Applauds Regulatory Progress

Dr. Halima Isa Lawal, CFTNR Executive Director, stated in Abuja that NUPRC’s actions demonstrate serious PIA implementation, crucial for sector accountability and investor confidence.

“NUPRC’s actions are proof that the reforms under the Petroleum Industry Act are taking root. For years, Nigeria struggled with weak oversight and opaque revenue tracking in the upstream sector. Today, we are beginning to see a new era of regulatory assertiveness,” Lawal said.

Data-Driven Approach Sets New Standard

Lawal praised NUPRC’s data-led regulatory methods as exemplary institutional leadership that serves public interest:

“These efforts go beyond just figures; they restore the credibility of our institutions and show both investors and citizens that transparency is not negotiable.”

Call for Broader Sector Reform

With oil and gas accounting for over 70% of government revenue, Lawal emphasized:

• Need for stronger regulator-parliament-civil society collaboration
• Importance of National Assembly support for regulatory independence
• Opportunity for companies to align with new transparency standards

She concluded: “Let this signal a new era where rules are enforced, not ignored; where compliance is rewarded and where failure to meet statutory obligations attracts swift penalties.”

Full credit to the original publisher: Daily Post