Eshioromeh Sebastian in Abuja
The Federal Government has launched a comprehensive forensic audit of past revenue collections by key agencies in the oil and gas sector, including the Nigerian National Petroleum Company Limited (NNPC Limited) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The investigation, which will also cover the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other operators, is designed to recover any outstanding sums due to the Federation following President Bola Tinubu’s recent Executive Order mandating the direct remittance of all oil and gas revenues into the Federation Account.
According to a document signed by the Minister of State for Finance and Chairman of the Federation Account Allocation Committee (FAAC), Dr. Doris Uzoka-Anite, the Federal Government has directed all relevant institutions to cease all forms of deductions and off-budget retentions from petroleum revenues with immediate effect.
The letter, titled: “Implementation of Presidential Executive Order on Safeguarding Federation Oil and Gas Revenues and Providing Regulatory Clarity – Immediate Remittance Directive and Retrospective Audit,” reinforces the constitutional provisions of Section 162, requiring that all revenues accruing to the Federation be paid in full without any deductions.
“I write to request that all revenues accruing to the Federation must be paid into the Federation Account without deduction,” the minister stated. “Accordingly, the following directives take immediate effect: Immediate cessation of deductions and retention. All institutions and operators are hereby directed to cease collection and management of the 30 per cent allocation to the Frontier Exploration Fund (FEF); suspend payment and retention of the 30 per cent management fee on profit oil and profit gas revenues previously payable to NNPC Limited.”
The directive also includes the cessation of payments of gas flare penalties into the Midstream and Downstream Gas Infrastructure Fund (MDGIF), and a discontinuation of all forms of off-budget allocations and administrative deductions inconsistent with the Executive Order.
All profit oil, profit gas, royalty oil, tax oil, gas flare penalties, and any other petroleum-related revenue streams are now to be remitted directly into a designated Sub-Federation Account, to be managed by the Office of the Accountant-General of the Federation pending FAAC distribution. The minister emphasised that no institution shall retain, net off, or deduct funds before remittance.
Beyond the immediate compliance requirements, the government has commissioned a retrospective audit covering three critical areas:
- The Frontier Exploration Fund (FEF): Auditors will examine total collections since the inception of the Petroleum Industry Act (PIA), all expenditures and commitments undertaken, and current balances and investment placements.
- The Midstream and Downstream Gas Infrastructure Fund (MDGIF): The review will focus on gas flare penalties collected, transfers and utilisation of funds, and compliance with procurement regulations.
- NNPC 30 Per Cent Management Fee: A thorough assessment will be conducted on total deductions made from profit oil and gas revenues, the utilisation of retained funds, and any outstanding balances that may be due to the Federation.
All affected entities, including NNPC Limited, NUPRC, NMDPRA, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), the Nigeria Revenue Service (NRS), and oil contractors, have been mandated to provide full financial records, documentation, and unrestricted access to audit teams.
The government has warned that any breach of this directive will be treated as a violation of a lawful executive order and constitutional fiscal provisions. Weekly remittance reports must now be submitted to the office of the Minister of State for Finance.
Meanwhile, in a related development underscoring the evolving landscape of Nigeria’s energy sector, the Group Chief Executive Officer of NNPC Limited, Mr. Bayo Ojulari, led a delegation to the Dangote Refinery and Petrochemical Complex in Ibeju-Lekki, Lagos State.
The high-level discussions with the President of the Dangote Group, Alhaji Aliko Dangote, culminated in a renewed commitment to strategic collaboration between the two industry giants. The visit, which included a facility tour, focused on strengthening operational and commercial relationships, with both organisations reaffirming their shared vision for Nigeria’s energy future.
Mr. Ojulari commended Alhaji Dangote for his vision and perseverance in delivering the 650,000 barrels per day refinery, a project that positions Nigeria as a major downstream hub in Africa. He described the partnership as one that will “unlock synergies across assets, infrastructure, capital, and markets.”
He further revealed the expansive potential of the collaboration, noting significant opportunities for both companies to expand upstream and into trading, shipping, and gas supplies. Mr. Ojulari expressed profound appreciation to President Tinubu for his visionary leadership, noting that the President’s policy clarity and investor-friendly reforms have created an enabling environment for such partnerships to flourish.
In his response, Alhaji Dangote stated, “Nigerians will be the beneficiaries of the synergy between Dangote Group and NNPC Limited, because our collaboration will achieve economies of scale and unlock value across markets.”
NNPC currently holds a 7.25 per cent stake in the Dangote Refinery, an investment aligned with its downstream growth objectives and its commitment to boosting domestic refining capacity. The visit concluded with both parties reaffirming their dedication to deepening cooperation to ensure energy security, drive industrial growth, and deliver value to Nigerians.
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