As Nigeria moves towards reshaping its oil and gas sector under 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 and accountability.
This comes after the House of Representatives directed OML18 Resources Limited to remit $4.02 million to the Federation Account, a result of NUPRC’s diligent investigations.
OML18 Resources, formerly Sahara Field Production Ltd, is among 45 companies flagged by the NUPRC for owing a combined $1.7 billion in unpaid royalties, gas flare penalties, and other liabilities.
In response, the House Committee on Public Accounts has given the company a five-day deadline to remit 20% of its debt, while also instructing it to reconcile the full outstanding amount within 14 days.
Dr. Halima Isa Lawal, Executive Director of CFTNR, praised the NUPRC’s actions, stating, “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.”
She further explained that “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.”
Highlighting the importance of institutional transparency, Lawal noted that NUPRC’s data-driven approach was a model for effective governance in Nigeria’s critical oil and gas sector.
She urged other oil firms to adopt similar transparency practices, adding, “Transparency is no longer optional; it is the future of Nigeria’s extractive sector.”
Lawal also stressed that Nigeria’s economic situation demands that every dollar from the oil and gas sector be accounted for, urging stronger collaboration between regulatory bodies, parliament, and civil society to ensure sustained progress.
“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 concluded.
