The Centre for Fiscal Transparency in Natural Resources (CFTNR) has applauded the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its commitment to transparency, institutional accountability, and full implementation of the Petroleum Industry Act (PIA), following a directive by the House of Representatives for OML18 Resources Limited to remit $4.02 million to the Federation Account.
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.
At the resumed hearing of the House Committee on Public Accounts on Wednesday, chaired by Bamidele Salam, the committee directed OML18 Resources to remit $4.02 million, 20 percent of its confirmed debt, within five days. The company was also given 14 days to reconcile its full outstanding obligations with the asset operator and submit a breakdown to the committee.
The directive 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 the Centre for Fiscal Transparency in Natural Resources, said the intervention by NUPRC 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.
“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,” Lawan 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, praising Engr. Gbenga Komolafe, Chief Executive of NUPRC, for driving sector-wide compliance without political interference.
“Under Engr. Komolafe’s leadership, NUPRC has shown that it is possible to uphold the rule of law in Nigeria’s most critical revenue-generating industry. The clarity, professionalism, and urgency with which the Commission is addressing outstanding liabilities deserve commendation,” Lawal said.
“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 percent of government revenue,” she said.
“What NUPRC has demonstrated is that with clarity of mandate and strong leadership, regulatory agencies can secure compliance and recover resources vital to national development.”
Lawal further urged the National Assembly to continue supporting agencies like NUPRC by upholding their independence and encouraging 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,” the statement added.
“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.”
As Nigeria continues to reposition its oil and gas sector under the PIA, stakeholders say NUPRC’s role in enforcing transparency will be crucial to achieving long-term economic resilience.
Lawal concluded by calling on other oil and gas firms to review their own records and engage proactively with regulators.
“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.”