Reps Query NUPRC Over N88bn Personnel, Overhead Costs

The joint sitting of the House of Representatives Committee on Finance and National Planning has raised concerns over the Nigeria Upstream Petroleum Regulatory (NUPRC) personnel expenditure of N88 billion in 2023.

Following a presentation by NUPRC’s Executive Commissioner for Economic Regulation and Strategic Planning, Babajide Oluwole Fasina, at an interactive session on the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), the committee directed the commission to present comprehensive details on oil production, crude sales, and other upstream industry activities.

Fasina explained that NUPRC’s revenues come from oil royalties, gas royalties, concession rentals, gas flaring penalties, fines, levies, signature bonuses, and license renewals. He disclosed that the commission earned a 4% Cost Of Revenue Collection (CORC) on the total funds collected for the federal government, amounting to N114.84 billion in 2023 compared to N114.38 billion in 2022. Despite this, N173.77 billion was the actual 4% due from N14.34 trillion collected in 2023.

Internal revenue sources like registration fees, license fees, fines, and recoveries generated N1.44 billion in 2023, a sharp decline from N30.08 billion in 2022. Total expenditure increased by 10.83% to N117.33 billion, with personnel costs of N82.35 billion accounting for 70.19% and overheads of N31.63 billion representing 26.96%.

Fasina noted a decline in non-tax remittances from N3.67 billion in 2022 to N1.77 billion in 2023, and listed amortization and depreciation costs of N246.66 million and N1.33 billion, respectively.

Rep. James Abiodun Faleke, Chair of the Finance Committee, criticized the high personnel and overhead costs, questioning the size of NUPRC’s workforce compared to the National Assembly, which had a budget of N150 billion for the year, including management and legislative staff.

Faleke remarked, “Your agency’s personnel expenditure of N88 billion is disproportionate. The 4% revenue collection fee seems excessive, and we need to ensure efficient spending.”