Wisdom Engraced
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The Centre for Fiscal Transparency in Natural Resources (CFTNR) has praised the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its strong commitment to transparency and accountability in enforcing the Petroleum Industry Act (PIA). This commendation follows a directive by the House of Representatives ordering OML18 Resources Limited to pay $4.02 million to the Federation Account, representing 20% of its confirmed debt to the federal government.
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The NUPRC had identified 45 oil and gas firms with a cumulative debt of $1.7 billion in unpaid royalties, gas flare penalties, and related liabilities. OML18, which owes $17.37 million in crude oil royalties, $2.86 million in gas flare penalties, and N173.7 million in gas sales revenue, was given a five-day ultimatum to remit the $4.02 million and 14 days to reconcile its outstanding obligations with its asset operator.
CFTNR Executive Director Dr Halima Isa Lawal said, “NUPRC’s actions are proof that the reforms under the Petroleum Industry Act are taking root. This is not just about recovering $4.02 million; it’s about resetting expectations. Operators now understand that obligations to the state will be enforced.” She commended NUPRC’s leadership, particularly Chief Executive Engr. Gbenga Komolafe, for driving sector-wide compliance without political interference
Lawal added, “Under Engr. Komolafe’s leadership, NUPRC has shown that it is possible to uphold the rule of law in Nigeria’s most critical revenue-generating industry. These efforts restore the credibility of our institutions and show both investors and citizens that transparency is not negotiable.”
The CFTNR executive director emphasised the importance of transparency in the oil and gas sector, saying, “In a time of economic hardship and budgetary constraints, Nigeria simply cannot afford leakages in a sector that accounts for over 70% of government revenue.” She called for stronger collaboration between regulatory bodies, parliament, and civil society to ensure sustained oversight and systemic change.
Lawal urged the National Assembly to continue supporting agencies like NUPRC and encouraged other oil and gas firms to review their records and engage proactively with regulators. She concluded, “This is a turning point. Companies should see this not as punishment but as an opportunity to align with the new standards. Transparency is no longer optional — it is the future of Nigeria’s extractive sector.
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Jonathan Nwokpor
