Reps Demand Comprehensive Report From NUPRC On Crude Oil Production And Sales

Reps Demand Comprehensive Report From NUPRC On Crude Oil Production And Sales

The House of Representatives has directed the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) to provide detailed information on all activities related to oil production, crude sales, and other operations within Nigeria’s upstream petroleum sector…READ MORE…

According to Naija News, this mandate was issued during a joint meeting of the House Committee on Finance and the Committee on National Planning at an interactive gathering with key agencies in Abuja on Friday.

The meeting addressed the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

The request followed a presentation by Babajide Fasina, Executive Commissioner for Economic Regulation & Strategic Planning (ECR&SP) at the NUPRC, who was represented by the commission’s Chief Executive Officer (CEO), Gbenga Komolafe, along with other management team members.

Fasina detailed the NUPRC’s revenue sources, which include oil and gas royalties, concession rentals, penalties, and other miscellaneous oil revenues.

He explained that these revenue streams include fines, levies, signature bonuses, and license renewals, noting that the NUPRC receives a 4% Cost Of Revenue Collection (CORC) from the total revenue collected on behalf of the Federal Government. This amount is credited to the Federation Account, with FAAC distributing the 4% to the commission.

“The CORC for 2023 was ₦114.84 billion, compared to ₦114.38 billion in 2022. The total released for 2023 included ₦2.82 billion for capital expenditures, although ₦173.77 billion was owed as the 4% on the actual collections of ₦14.34 trillion in 2023,” he stated.

The commission also reported internal revenue generation of ₦1.44 billion in 2023, a significant decline from ₦30.08 billion in 2022, representing only 1.26% of total revenues for 2023, down from 2.62% in the previous year.

Fasina further indicated that the commission’s expenditures increased to ₦11.46 billion in 2023, marking a 10.83% rise from 2022. Personnel costs constituted the largest share of the budget, totaling ₦82.35 billion, accounting for 70.19% of overall expenses amounting to ₦117.33 billion. Overhead costs followed closely at ₦31.63 billion, or 26.96% of the total.

He also reported a drop in non-tax remittances, which decreased from ₦3.67 billion in 2022 to ₦1.77 billion in 2023, along with amortization and depreciation costs of ₦246.66 million and ₦1.33 billion, respectively.

Rep. James Faleke, Chairman of the House Committee on Finance, expressed dissatisfaction with the commission’s personnel and overhead costs outlined in the official documents.

“I’m curious about the nature of your organization. You are spending ₦88 billion on salaries. How many employees do you actually have?” he questioned.

In concluding the session, Faleke ordered, “You must return with full records of all the oil wells, detailing daily production, liter by liter. How much oil do we extract from these wells each day?