Two Nigerian petroleum regulators failed to account for N313 billion – Audit report

Two agencies regulating Nigeria’s petroleum industry could not properly account for over N313 billion and their actions resulted in the loss of revenue to the government, according to the latest report by the Auditor General of the Federation.

The two petroleum agencies indicted in the report are the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The findings in the 2021 audit report, the latest by the auditor general, are interim observations requiring the regulators to provide explanations to the auditor general. However, even in cases where they provided explanations, the auditor general said some of their explanations were untenable.

The report detailed regulatory failures as well as disregard for due process and accountability standards.

Auditors said a total of N309 billion and $2.28 billion remained largely unaccounted for under the NUPRC and NMDPRA in 2021.

The two agencies were established in August 2021 following the signing into law of the Petroleum Industry Act by then-President Muhammadu Buhari.

Gbenga Komolafe was appointed as the pioneer Chief Executive Officer of NUPRC in September 2021 and still holds the position, while Farouk Ahmed was appointed as the pioneer Chief Executive Officer of NMDPRA in September 2021 and still holds the position. Thus, the infractions occurred during the management of the agencies by both men.