Reps Issue New Directive To NUPRC On Crude Oil Production And Sales

Reps Issue New Directive To NUPRC On Crude Oil Production And SalesThe House of Representatives has directed the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) to provide detailed information on oil production, crude sales, and other activities within the country’s upstream petroleum sector. This directive came during a joint session of the House Committees on Finance and National Planning at an interactive meeting with key agencies in Abuja on Friday.....KINDLY READ THE FULL STORY HERE▶

The meeting, which focused on the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), was prompted by a presentation from Babajide Fasina, Executive Commissioner for Economic Regulation & Strategic Planning at NUPRC, who was represented by the commission’s CEO, Gbenga Komolafe, and other management team members.

Fasina provided an overview of NUPRC’s revenue streams, which include oil royalties, gas royalties, concession rentals, gas flat penalties, and other miscellaneous oil revenues. He also explained that the NUPRC receives a 4% Cost Of Revenue Collection (CORC) from the total revenue it collects on behalf of the Federal Government. This amount is credited directly to the Federation Account, which then allocates the 4% to the commission. In 2023, the CORC amounted to ₦114.84 billion, slightly higher than the ₦114.38 billion recorded in 2022.

Fasina noted that in 2023, the NUPRC allocated ₦2.82 billion for capital expenditure, although ₦173.77 billion was due as the 4% CORC from actual collections of ₦14.34 trillion. The commission also generates internal revenue, such as registration fees, license fees, fines, and recoveries. However, Fasina reported a significant drop in the commission’s internal revenue generation, which fell from ₦30.08 billion in 2022 to ₦1.44 billion in 2023, representing just 1.26% of total revenue for 2023, compared to 2.62% the previous year.

The commission’s expenditures also rose in 2023, totaling ₦11.46 billion, marking a 10.83% increase from the previous year. Personnel costs were the largest expenditure, amounting to ₦82.35 billion (70.19% of the total budget of ₦117.33 billion), while overhead costs totaled ₦31.63 billion (26.96%). Additionally, Fasina highlighted a decline in non-tax remittances, which dropped from ₦3.67 billion in 2022 to ₦1.77 billion in 2023.

Rep. James Faleke, Chairman of the House Committee on Finance, expressed dissatisfaction with the commission’s personnel and overhead spending, particularly the ₦88 billion spent on salaries. “I’m wondering what type of organisation you have. You are paying ₦88 billion as salaries. How many staff do you have?” he asked.

In response, Faleke issued a ruling, instructing NUPRC to return with comprehensive records detailing oil production, specifying the daily output from each well, and providing a breakdown of how much oil is produced per day. “You will have to come back with all the records of all the wells that produce the oil, litre by litre, per day. How much oil do we get from here every day?” Faleke stated.

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