As Nigeria repositions its oil and gas sector under the Petroleum Industry Act, PIA, the Centre for Fiscal Transparency in Natural Resources, CFTNR, has said the functions of the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, in enforcing transparency will be crucial to achieving long-term economic resilience.
The CFTNR’s assertion follows the House of Representatives’ directive to OML18 Resources Limited to remit $4.02 million to the Federation Account, a move it says is the result of NUPRC’s investigations and insistence on institutional accountability and full implementation of the PIA.
DAILY POST reports that OML18 Resources, formerly Sahara Field Production Ltd, is among 45 oil and gas companies flagged in the audit report and data presented by the NUPRC as owing a combined $1.7 billion to the Nigerian government in unpaid royalties, gas flare penalties, and related liabilities.
Following the revelation, the House Committee on Public Accounts, on Wednesday, directed OML18 Resources to remit $4.02 million, 20 per cent of its confirmed debt, within five days.
The committee, chaired by Bamidele Salam, at its resumed hearing, gave the company 14 days to reconcile its full outstanding obligations with the asset operator and submit a breakdown to the committee.
The directive also followed confirmation by NUPRC that OML18 Resources owes $17.37 million in crude oil royalties, $2.86 million in gas flare penalties, and N173.7 million in gas sales revenue, a debt acknowledged by the company during the hearing.
In a statement issued on Saturday in Abuja, Dr Halima Isa Lawal, Executive Director of CFTNR, said NUPRC’s intervention reflects a renewed seriousness in the implementation of the Petroleum Industry Act, which aims to promote accountability and investor confidence in Nigeria’s oil and gas sector.
Lawal called on other oil and gas firms to review their own records and engage proactively with regulators.
“NUPRC’s actions are proof that the reforms under the Petroleum Industry Act are taking root. For years, Nigeria struggled with weak oversight and opaque revenue tracking in the upstream sector. Today, we are beginning to see a new era of regulatory assertiveness,” Lawal said.
“This is not just about recovering $4.02 million; it’s about resetting expectations. Operators now understand that obligations to the state will be enforced.”
She described the commission’s data-led regulatory approach as an example of how institutional leadership can serve the public good.
According to her: “NUPRC has shown that it is possible to uphold the rule of law in Nigeria’s most critical revenue-generating industry.
“These efforts go beyond just figures; they restore the credibility of our institutions and show both investors and citizens that transparency is not negotiable.”
Lawal also noted that Nigeria’s current fiscal outlook requires every dollar earned from the oil and gas sector to be accounted for.
She called for even stronger collaboration between regulatory bodies, parliament, and civil society to ensure sustained oversight and systemic change.
“In a time of economic hardship and budgetary constraints, Nigeria simply cannot afford leakages in a sector that accounts for over 70 per cent of government revenue,” she said.
Lawal further urged the National Assembly to continue supporting agencies like NUPRC by upholding their independence and encouraging the timely implementation of audit recommendations.
“The House Committee on Public Accounts has shown courage and resolve in tackling this issue head-on. Their collaboration with NUPRC in scrutinising these debts has proven effective, and we encourage similar action across other sectors,” she added in the statement.
“Let this signal a new era where rules are enforced, not ignored; where compliance is rewarded and where failure to meet statutory obligations attracts swift penalties.
“This is a turning point. Companies should see this not as punishment, but as an opportunity to align with the new standards. Transparency is no longer optional; it is the future of Nigeria’s extractive sector.”
