Fiscal Transparency Centre hails NUPRC as Reps Demand $4million remittance from oil firm

The Centre for Fiscal Transparency in Natural Resources (CFTNR) has commended the
Nigerian Upstream Petroleum Regulatory Commission
(NUPRC) for demonstrating strong commitment to transparency, institutional accountability, and the effective enforcement of the Petroleum Industry Act (PIA).

This follows a directive by the House of Representatives mandating OML18 Resources Limited—formerly known as Sahara Field Production Ltd—to remit $4.02 million to the Federation Account. The payment represents 20 percent of its confirmed debt to the federal government.

OML18 is one of 45 oil and gas firms flagged in an audit report and data submitted by NUPRC, which revealed a cumulative debt of $1.7 billion in unpaid royalties, gas flare penalties, and related liabilities.

During a resumed session of the House Committee on Public Accounts on Wednesday, chaired by Bamidele Salam, OML18 was ordered to remit the $4.02 million within five days and reconcile its full outstanding obligations with its asset operator within 14 days.

The company is also expected to provide a comprehensive breakdown of its debt to the committee.

According to figures confirmed by the NUPRC and acknowledged by the company, OML18 owes $17.37 million in crude oil royalties, $2.86 million in gas flare penalties, and N173.7 million in gas sales revenue.

In a statement issued on Saturday in Abuja, Dr. Halima Isa Lawal, Executive Director of the CFTNR, said the NUPRC’s actions reflect a renewed commitment to enforcing the provisions of the PIA and fostering transparency and investor confidence in Nigeria’s oil and gas industry.

“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,” Lawan said.

“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 described the Commission’s data-led regulatory approach as an example of how institutional leadership can serve the public good, praising Engr. Gbenga Komolafe, Chief Executive of NUPRC, for driving sector-wide compliance without political interference.

“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. The clarity, professionalism, and urgency with which the Commission is addressing outstanding liabilities deserve commendation,” Lawal said.

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

Lawal also noted that Nigeria’s current fiscal outlook requires every dollar earned from the oil and gas sector to be accounted for.

She called for even stronger collaboration between regulatory bodies, parliament, and civil society to ensure sustained oversight and systemic change.

“In a time of economic hardship and budgetary constraints, Nigeria simply cannot afford leakages in a sector that accounts for over 70 percent of government revenue,” she said.

“What NUPRC has demonstrated is that with clarity of mandate and strong leadership, regulatory agencies can secure compliance and recover resources vital to national development.”

Lawal further urged the National Assembly to continue supporting agencies like NUPRC by upholding their independence and encouraging timely implementation of audit recommendations.

“The House Committee on Public Accounts has shown courage and resolve in tackling this issue head-on. Their collaboration with NUPRC in scrutinising these debts has proven effective, and we encourage similar action across other sectors,” the statement added.

“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.”

As Nigeria continues to reposition its oil and gas sector under the PIA, stakeholders say NUPRC’s role in enforcing transparency will be crucial to achieving long-term economic resilience.

Lawal concluded by calling on other oil and gas firms to review their own records and engage proactively with regulators.

“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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