The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has rebutted claims of financial mismanagement following reports alleging its indictment by an Audit Report for failing to remit funds into the Federation Account.

Responding to media assertions, the Commission clarified that it cannot remit funds it never received into the federation account.

The media report cited a 2022 Audit Report from the office of the Auditor General of the Federation, implicating the Nigerian Customs Service and the NUPRC for non-remittance of significant sums of money.

In a statement signed by Olaide Shonola, the head of Public Affairs and Corporate Communications, the Commission emphasized a misunderstanding regarding its composition and responsibilities.

The statement highlighted, “The newspaper quoted the report as indicating that N151.121 billion deducted by the Nigeria National Petroleum Company Limited (NNPCL) on behalf of NUPRC (formerly Department of Petroleum Resources) as royalty for 2020 was not captured in the federation account.”

Addressing the discrepancy, the Commission clarified that the audit report pertains to the year 2020, predating the establishment of NUPRC by the Petroleum Industry Act (PIA) of 2021, inaugurated in October 2021.

As a regulatory entity, NUPRC does not directly engage in operational activities, making it erroneous to attribute operational discrepancies to the Commission.

Furthermore, the statement emphasized that funds, including royalties, collected by licensees are mandated to be remitted directly to the Federation Account without involvement from NUPRC.

While NUPRC has endeavored to facilitate the remittance of outstanding funds by licensees, any lapses in remittance are solely attributable to the licensees’ actions or inactions.

The Commission firmly refuted any insinuations of fault or negligence on its part, asserting that it cannot be held accountable for processes beyond its jurisdiction.

The statement concluded by affirming that NUPRC cannot be implicated in remittance discrepancies, reiterating its role solely as a regulatory body overseeing the oil and gas sector’s operations.

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