The Centre for Fiscal Transparency in Natural Resources (CFTNR) has praised the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for demonstrating firm commitment to transparency, institutional accountability, and the rigorous enforcement of the Petroleum Industry Act (PIA).
This commendation follows a directive from the House of Representatives ordering OML18 Resources Limited, formerly Sahara Field Production Ltd, to remit $4.02 million to the Federation Account. The sum represents 20 percent of the company’s verified outstanding debt to the federal government.
OML18 is among 45 oil and gas companies identified in an audit report and data provided by NUPRC, which uncovered a combined debt of $1.7 billion. The liabilities span unpaid royalties, gas flare penalties, and other related dues.
During a reconvened session of the House Committee on Public Accounts on Wednesday, chaired by Bamidele Salam, lawmakers instructed OML18 to remit the $4.02 million within five days. The company was also directed to reconcile its full outstanding obligations with its asset operator within 14 days and submit a detailed breakdown of its debt to the committee.
Figures confirmed by NUPRC and acknowledged by the company indicate that 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 over the weekend in Abuja, the Executive Director of CFTNR, Dr. Halima Isa Lawal, said NUPRC’s enforcement of the PIA marks a turning point in regulatory oversight and signals growing investor confidence in Nigeria’s oil and gas sector.
“The actions of the NUPRC show that the reforms enshrined in the Petroleum Industry Act are taking effect. For years, Nigeria grappled with lax oversight and unclear revenue tracking in the upstream industry. Now we are witnessing a shift towards credible, firm regulation,” Lawal said.
“This is not merely about recovering $4.02 million. It’s about redefining expectations. Operators are beginning to realise that their obligations to the state will no longer be overlooked.”
She described the Commission’s data-driven regulatory approach as a model of how effective institutional leadership can serve public interest. She also commended NUPRC’s Chief Executive, Engr. Gbenga Komolafe, for driving sector-wide compliance while maintaining independence from political influence.
“Under Engr. Komolafe’s guidance, the NUPRC has proven that it is possible to uphold legal standards in Nigeria’s most vital revenue-generating sector. The clarity, urgency, and professionalism the Commission has brought to the task of addressing legacy liabilities are deserving of recognition,” she said.
Lawal stressed that these regulatory efforts restore credibility to public institutions and send a message to both investors and citizens that transparency is not negotiable.
Given Nigeria’s current fiscal challenges, Lawal noted that the country cannot afford lapses in oil and gas revenue collection. She called for stronger cooperation between regulatory agencies, the National Assembly, and civil society to ensure sustained oversight and meaningful reform.
“In a period marked by economic strain and tight public finances, Nigeria cannot afford leakage in a sector that contributes over 70 percent of government earnings,” she stated.
“NUPRC’s performance shows that with a clear mandate and strong leadership, regulatory agencies can recover vital resources and ensure they are used for national development.”
She further encouraged the National Assembly to continue supporting independent agencies like NUPRC by safeguarding their autonomy and ensuring that audit recommendations are implemented promptly.
“The House Committee on Public Accounts has demonstrated resolve and accountability in confronting this issue. Their work with NUPRC in reviewing these debts has been impactful. We hope to see this kind of cooperation replicated in other sectors,” she said.
“This moment should mark a shift: where rules are enforced consistently, where compliance is encouraged, and where failure to meet statutory duties is met with swift action.”
As Nigeria restructures its oil and gas sector under the PIA framework, stakeholders have said NUPRC’s role in maintaining transparency will be central to achieving sustained economic stability.
Lawal concluded by urging other operators in the industry to audit their own records and actively engage with regulators.
“This is a pivotal moment. Companies should not view this as punishment, but as an opportunity to align with the emerging standards. Transparency is no longer an option, it is the future of Nigeria’s extractive sector,” she said.
