NUPRC Clarifies Misconceptions Regarding Non-Remittance of Funds into Federation Account

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has recently addressed a media report claiming that the Commission was indicted by an Audit Report for non-remittance of funds into the Federation Account.

In a statement released by the head of Public Affairs and Corporate Communications, Olaide Shonola, the Commission clarified that it cannot remit funds into the federation account that it never received.

The report in question had alleged that both the Nigerian Customs Service and the NUPRC were indicted for non-remittance of billions of Naira in 2022.

The Commission pointed out that the audit report under reference is for the Year 2020, whereas the NUPRC was established in 2021 as a regulatory body under the Petroleum Industry Act (PIA).

The statement further clarified that the NUPRC is not directly involved in operational activities and is not responsible for receiving and remitting funds from oil and gas sector operations to the designated accounts.

It emphasized that the responsibility lies with the licensees (all operators, including the NNPCL) to directly remit funds, including royalties, to the Federation Account.

The Commission explained that even though it made efforts to ensure that all outstanding funds in the licensees’ custody were remitted to the Federation Account, the reasons for neglect, failure, or refusal to do so are within the respective purview of the licensees themselves.

The NUPRC firmly refuted any allegations of vicarious indictment for a process outside its domain and emphasized that it cannot be held accountable for funds it never received.

The Commission urged the media and the public to be aware of the facts and avoid spreading misinformation, which can result in unnecessary confusion and harm to the reputation of the regulatory body.