Fresh concern don hit major oil and gas agencies after President Bola Ahmed Tinubu sign new executive order wey direct immediate reallocation of oil and gas revenues to the Federation Account for sharing among federal, state and local governments.
The directive, according to findings, go stop some agencies from retaining part of their internally generated revenue, a move wey don create uncertainty for Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian National Petroleum Company Limited (NNPC Ltd), and the Midstream and Downstream Gas Infrastructure Fund.
Fear Over Funding Model
Industry sources talk say the major issue now be lack of clear alternative funding plan, especially for NUPRC, as oil and gas royalties go now enter Federation Account directly.
Experts reject idea say regulator should depend fully on yearly budget approval from National Assembly, saying such move fit weaken the commission independence and expose am to political pressure and delay.
Dem argue say upstream regulation require fast technical decisions, field monitoring and enforcement wey no suppose depend on slow budget releases from Ministry of Finance.
PIA Funding Framework In Question
Senior officials point to the Petroleum Industry Act 2021 (PIA), wey clearly state how NUPRC funding suppose work, including the four per cent cost of collection wey serve as major operational source.
Section 12 of the Act allow the commission set staff terms and salary structure to compete with international oil companies, so dem fit attract and retain skilled professionals.
According to insiders, NUPRC spend about ₦88bn on salaries and allowances in 2024, while generating around ₦322.8bn in 2025 from the four per cent cost of collection.
One top official question whether executive order fit override Act wey National Assembly pass, asking:
“The four per cent cost of collection no be privilege; na statutory funding. If all the money go straight to Federation Account, wetin be the alternative source to run operations?”
Concern Over Oil Production Target
Sources also raise concern over how government plan to fund frontier exploration and improve Nigeria Reserve Replacement Ratio, especially as country dey target crude production of about three million barrels per day by 2030 and fresh investments of over $12bn yearly.
Observers say the new order don create fresh ambiguity around role of Frontier Exploration Services and the Midstream and Downstream Gas Infrastructure Fund.
As implementation begin, stakeholders dey call for clarity to avoid disruption in regulation, monitoring and enforcement within Nigeria upstream oil sector.
