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