.Reps order forensic audit of NMDPRA over gas infrastructure fund

FIFTY oil blocks will be leased to investors to raise $10 billion and increase oil production by an additional 400,000 barrels per day, Abuja disclosed yesterday.

This was as the House of Representatives Public Accounts Committee raised concerns over the alleged misapplication and mismanagement of the Midstream and Downstream Gas Infrastructure Fund by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Nigerian Upstream Petroleum Regulatory Commission (NUPRC), mandated by the Petroleum Industry Act (PIA) to hold a yearly licensing round, said 15 onshore blocks, 19 shallow water blocks, 15 frontier assets and 1 deepwater block would be offered.

Announcing the move at a press event, Chief Executive of NUPRC, Gbenga Komolafe, said the development would expand investment, strengthen transparency and deepen exploration in the upstream sector.

The Commission also launched the dedicated bid portal: br2025.nuprc.gov.ng.
Komolafe said the 2022 Mini-Bid Round and the historic 2024 Licensing Round were conducted with unprecedented transparency, global competitiveness and strong investor engagement.

According to him, the 2024 Licensing Round was completed without a single litigation, adding that with presidential approval, the 2025 edition would boost Nigeria’s reserves, increasing production capacity, expanding gas utilisation, creating thousands of jobs across the value chain and enhancing indigenous participation.

With reduced signature bonuses now hovering around N200 million to attract greater investment and participation, Komolafe said the NUPRC has undertaken extensive multi-client surveys to further de-risk exploration, while reprocessing thousands of kilometres of 2D and 3D seismic data to deliver the highest-quality subsurface imagery available in Africa.

This, the commission noted, sharply reduces uncertainty, lowers entry costs, accelerates time to first oil or gas, and enhances investor confidence.

The 2025 Licensing Round is projected to attract about $10 billion in investments, add up to two billion barrels to national oil reserves over the next decade, and deliver an estimated 400,000 barrels per day from fully developed assets.
THE green chamber called for a comprehensive forensic audit of the fund’s operations from 2021 to date.

The probe was sequel to a motion moved by Cyriacus Umeha and seconded by KafilatOgbara during plenary.

The committee, chaired by Bamidele Salam, noted that Section 52(1) of the Petroleum Industry Act (PIA) 2021 established the Midstream and Downstream Gas Infrastructure Development Fund, stating that its utilisation must be subject to appropriation by the National Assembly.

It further observed that Section 52(7a) stipulates that the fund should be financed through 0.5 per cent of the wholesale price of petroleum products and natural gas sold in Nigeria, collected from wholesale customers in addition to levies outlined in Section 47(2)(c) of the Act.

Lawmakers also drew attention to Sections 52(8) and (9) of the Act, which mandate the NMDPRA to ensure the prompt collection of all such sums into the Fund’s account within 21 days of the sale of petroleum products and natural gas in the country.

The committee highlighted that Order 20, Rule 6(5) of the House Standing Orders (11th edition) empowers the Public Accounts Committee to investigate loss of public revenue, non-remittance of fees, and violations of financial laws in the administration of public funds.
However, concerns were raised after the Public Accounts Committee, in a letter dated July 21, 2025, requested the NMDPRA to submit relevant information on the administration and utilisation of the fund and to appear before the committee on August 12, 2025.

According to the motion, the authority neither responded to the request nor honoured the invitation.
The committee explained that it issued a final reminder on August 26, 2025, but the NMDPRA still failed to comply, raising further suspicion about the management of the fund.

In response, the House resolved to mandate the Office of the Auditor-General for the Federation to conduct a comprehensive forensic audit of all funds collected by the NMDPRA since 2021.

The committee said the audit is expected to uncover the extent of alleged mismanagement, misappropriation, and fraudulent diversion of funds, as well as identify wholesale customers who failed to remit the required levy.

PAC ordered the Auditor-General to report back within 60 days.