Emmanuel Addeh in Abuja and Peter Uzoho in Lagos
The Nigerian Upstream Petroleum Regulatory Fee (NUPRC) has rebuffed a media report alleging {that a} 2022 Audit Report had indicted the fee over its purported non-remittance of N151.121 billion into the Federation Account.
The NUPRC in a press release issued yesterday, in Abuja, signed by its Head of Public Affairs and Company Communications, Mrs. Olaide Shonola, said that the media report clearly confirmed a lack of knowledge of the composition and duty of the fee.
The NUPRC argued that the audit report underneath reference was that of 2020, explaining that the fee was a creation of the Petroleum Business Act (PIA) of 2021 and was inaugurated in October 2021.
The upstream regulator added that it’s a regulatory physique and never instantly concerned in operational actions.
The NUPRC maintained that it due to this fact smacked {of professional} sloppiness to hyperlink it by no matter definition to a report of 2020, including that it was additionally mischievous to say that the fee didn’t remit funds it by no means obtained.
The Gbenga Komolafe-led regulator additional defined that funds, together with royalties, obtained by licensees or operators together with the Nigerian Nationwide Petroleum Firm Restricted (NNPCL) have been meant to be remitted on to the Federation Account and never by way of the NUPRC.
The fee famous that the operators have been answerable for receiving and remitting funds from oil and gasoline sector operations to the designated accounts.
The assertion learn, “The eye of the NUPRC has been drawn to a relatively mischievous story with the headline ‘Audit report indicts NUPRC, Customs for non-remittance into Federation Account.’
“The story, which claims {that a} 2022 Report from the workplace of the Auditor Normal of the Federation indicted the Nigerian Customs Service and the NUPRC for non-remittance of billions of Naira, clearly reveals a lack of knowledge of the composition and duty of the NUPRC.
“The newspaper quoted the report as indicating that N151.121 billion deducted by the Nigeria Nationwide Petroleum Firm Restricted (NNPCL) on behalf of NUPRC (previously Division of Petroleum Sources) as royalty for 2020 was not captured within the federation account.
“Within the first place, the audit report underneath reference is that of the 12 months 2020. The NUPRC is a creation of the Petroleum Business Act (PIA) of 2021 and was inaugurated in October 2021. It’s a regulatory physique and never instantly concerned in operational actions.
“It due to this fact smacks {of professional} sloppiness to hyperlink NUPRC by no matter definition to a report of 2020. Additionally it is mischievous to say that NUPRC didn’t remit funds it by no means obtained.”
It added: “Funds, together with royalties, obtained by licensees (all operators, NNPCL inclusive) are supposed to be remitted on to the Federation Account. It doesn’t cross by way of NUPRC.
“They’re answerable for receiving and remitting funds from oil and gasoline sector operations to the designated accounts.”
The fee identified that although as a regulator, it subsequently made efforts for the licensees to remit all excellent funds of their custody to the Federation Account, the explanations for neglect, failure or refusal to take action have been instantly inside their respective purview.
The regulator argued that it was due to this fact an act of mischief to put the fault on NUPRC or blame the fee for not remitting funds it by no means obtained.
“It should be said emphatically that the NUPRC can’t bear vicarious indictment for a course of outdoors its area, because it doesn’t obtain and isn’t ready to fail or refuse remittance”, the assertion concluded.