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Reps query NUPRC over N120 billion expenditure on personnel, overhead

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The House of Representatives joint Committees on Finance and National Planning have frowned at the huge expenditure of over N120 billion by Nigeria Upstream Petroleum Regulatory Commission (NUPRC) on personnel and overhead cost annually.

Speaking during an interactive session with key agencies on the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), Chairman of the House Committee on Finance, James Abiodun Faleke (APC, Lagos) directed the agency to provide details of oil production, crude sales and other activities in the Upstream Petroleum Industry in the country.

NUPRC Executive Commissioner Economic Regulation & Strategic Planning (ECR&SP), Babajide Oluwole Fasina who represented the Chief Executive Officer (CEO) of the organisation, Gbenga Olu Komolafe had presented the revenue and expenditure before the committee.

Responding to the presentation, Faleke said “I’m wondering what type of organization you have.You are paying 88 billion as salaries. How many staff do you have? How many staff do you have?

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“National Assembly, before the review, they give us N150 billion for our expenditure every year and that is shared between the Senate, House of Representatives, management and everybody.

“So only your agency is spending N88 billion. That’s why you have so much. So much money because of 4% cost of collection. 4% is too much. We need money…you are spending N88 billion on personnel, and you are spending over N40 billion on overhead.”

Despite trying to justify the figure, the Committee rejected the NUPRC’s explanation and demanded  comprehensive records from the Commission as regards its revenues, expenditure and all other activities including exploration activities of Frontier Explorations’ at various Frontier Basins in the country where oil prospecting activities are taking place.

“You are going to come back with all the records of all the wells that produce the oil litre by litre per day. How much oil do we get from here every day,” Faleke asked rhetorically.

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The lawmaker further said: “You are going to come back with records of shipments of crude either daily or weekly at what rate. You are going to come back with proposals of 2025 as to the expectations of two million five barrels per day, 2.06 million per day.

“And you reach out to the Frontier or whatever you called them. You come together with them and must come with the records of all Frontier activities, expenses incurred, crude oil realized from there and of course the sales proceeds and add what the Frontiers are doing. The day they started and how far they have gone. You must come here with them on the 18th. We expect you here on the 18th by 11am.”

Earlier in his presentation, Fasina informed the Committee that NUPRC derives its revenues from oil royalty, gas royalty, concession rental, gas flat penalty, miscellaneous oil revenues which include fines and levies, signature bonus and renewal of licenses.

Giving a highlight of the revenue collections, he said the NUPRC gets 4% Cost of Revenue Collection for the total revenue collected on behalf of the federal government which he said were credited directly to the Federation Account and while FAAC credits the 4% to the Commission.

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He said, “The Cost Of Revenue Collection amounted to N114.84 billion in 2023 as against N114.38 billion in 2022. The amount released in 2023 includes N2.82 billion for Capital Expenditure, though N173.77 billion was due as 4% on the Actual Collections of N14.34 Trillion in 2023.

“The Commission also generates revenues internally such as, Registration Fees, Licence Fees, Fines, Recoveries, etc. It generated N1.44 billion in 2023 compared to N30.08 billion in 2022, and this accounts for 1.26% of the total Revenue realized in 2023 and 2.62% in 2022 respectively.

Fasina, however, informed the Committee that the Commission recorded a high expenditure in 2023 compared to 2022 by N11.46 billion which he said was an increase of 10.83%.

He added, “Personnel Cost which has the largest share amounting to N82.35 billion represents 70.19% of the total expenses of N117.33 billion, followed by Overhead Costs of N31.63 billion which accounts for 26.96 billion”.

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The NUPRC Executive Commissioner however informed that, the Commission’s non-tax remittance dropped from N3.67 billion in 2022 to N1.77 billion in 2023 and an Amortisation and Depreciation of N246.66 million and N1.33 billion respectively.

Also, the Committee directed the Nigeria Bulk Electricity Trading to provide details of its budget performance and other activities in the electricity market.

The agency has in its submission informed the Committee about the ‘reason for disparity between Generation Companies (Gencos) invoices and amount invoices to Distribution Companies (DisCos).

The agency’s documents stated, “NBET invoices DisCos before receiving and verifying GenCo invoices as required by the settlement Calendar. This timing difference means that components such as interest and True-Up, which are included in GenCo invoices cannot be reflected in the invoices sent to DisCos, Consequently, the mismatch in timing leads to discrepancies in the amounts invoices.

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“Apart from the DisCos, other off-takers such as Ajaokuta Steel Company and Net Importer Generation Companies are included in the invoicing process. The inclusion of these off-takers introduces further complexities that contribute to the disparity between actual invoices and the amounts invoices to DisCos.

“The supplementary order under the Transitional Electricity Market (TEM) framework mandates the use of specific tariff for invoicing Net Importer GenCos. These tariff requirements create additional differences between the amounts invoiced to GenCos and those passed on to DisCos.”

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Crashed helicopter flying NNPC officials violated regulations – FG

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Barely two months after a Sikorsky SK76 helicopter operated by East Aviation crashed in Port Harcourt, the Nigerian Safety Investigation Bureau has disclosed that its handlers violated several of the Nigeria Civil Aviation Regulations directives.

Although the bureau was silent on whether or not the vices led to the unfortunate incident, the act shows gaps in the regulatory duties of the NCAR.

The helicopter, which was contracted by the Nigerian National Petroleum Company Limited, plunged into the Atlantic Ocean near Bonny Finima, off the coast of Calabar on October 24, with six passengers and two crew members.

Five bodies of the eight victims have been recovered while the remaining three are still yet to be found.

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While reeling out the preliminary findings of the bureau on the accident, The Director-General of NSIB, Alex Badeh, on Tuesday told journalists in Abuja that the crashed helicopter was not fitted with a Flight Data Recorder, a violation of the Part 7.8.2.2(q) of Nigeria Civil Aviation Regulations (Nig. CARs) Act 2023

Badeh added that the helicopter crew members used non-standard phraseology throughout the flight.

The preliminary findings of the bureau read partly, “The helicopter was fitted with a solid-state cockpit voice recorder; The helicopter was not fitted with a Flight Data Recorder; although Part 7.8.2.2(q) of Nigeria Civil Aviation Regulations (Nig. CARs) 2023 requires that FDR shall be fitted on the helicopter; The flight crew used non-standard phraseology throughout the flight.”

The report further reads; “There were no standard callouts for the various phases of the flight; The helicopter Radio Altimeter (Rad alt) was snagged and deferred on October 18, 2024, six days before the accident; No dew point data was reported in the weather information passed to 5N-BQG on the day of the occurrence.”

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While speaking on the causes of the crash, Badeh explained that the investigators discovered that it appeared to be “Struggling to gain balance right before crashing into the ocean.”

He further noted that the crew’s struggle was followed by an aural warning from the aircraft, “Bank angle, Bank angle,” which was the last recorded data on the Cockpit Voice Recorder with smoke emanating from the engine before it ditched into the water.

Other reports released by the NSIB include a final report on the serious accidents involving Beech Baron 58 aircraft operated by Nigerian College of Aviation Technology, Zaria with nationality and registration marks 5N-CAG, which occurred on runway 5 at General Hassan Usman Katsina International Airport, Kaduna on December 31, 2022 and five other incidents.

The NSIB, however, charged the NCAA to ensure strict compliance with the Nigerian Civil Aviation Regulations (Nig. CARs) 2023 part 7.8.2.2(q) which requires that all helicopters with a maximum take-off mass over 3175 kg and up to 7000 kg be fitted with a Flight Data Recorder.

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Kaduna returns Abacha family property seized by El-Rufai

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Kaduna State Governor, Senator Uba Sani, has reinstated ownership of two properties previously revoked from the family of the late military dictator, Gen. Sani Abacha, during the administration of his predecessor, Nasir El-Rufai.

The properties, located at No. 9 Abakpa GRA and No. 1 Degel Road, Ungwan Rimi GRA, in Kaduna, had been seized in 2022 following allegations of breaches of occupancy terms under the Land Use Act.

Speaking on Tuesday, Abacha family lawyer, Reuben Atabo (SAN), confirmed the reinstatement, describing it as a significant development.

The revocation, which was widely publicised in newspapers on April 28, 2022, included the late Abacha’s name as item 34 among those affected.

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Atabo said the move had caused “embarrassment” to the Abacha family, prompting legal action against the state government.

Governor Sani, however, reversed the revocation in two separate letters dated December 10, 2024, through the Kaduna Geographic Information Service.

Both letters, signed by Mustapha Haruna on behalf of the Director General of KADGIS, directed the family to settle outstanding fees and charges as a condition for reinstatement.

One of the letters reads: “His Excellency, the Governor of Kaduna State, has in the powers conferred on him under the Land Use Act 1978, reinstated the aforementioned title… Subject to strict condition of settling all outstanding fees and charges.”

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The Abacha family, through Atabo, welcomed the decision, describing it as a gesture of fairness and justice.

The reinstatement marks a shift from El-Rufai’s administration, which had cited “various contraventions” as the basis for revoking the properties.

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CAC deregistered 300,000 dormant companies in one year

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The Corporate Affairs Commission (CAC) has deregistered over 300,000 dormant companies within a year to sanitise the nation’s corporate registration system.

The Registrar General, Hussaini Ishaq Magaji (SAN), announced this in an exclusive interview with The Nation in Abuja.

Magaji said: “From October 16, 2023, when I assumed office, to date, we have witnessed an extraordinary level of deregistration. In December 2023 alone, we deregistered over 100,000 companies. By February 2024, another 100,000 companies were removed, and recently, we deregistered an additional 100,000.”

The CAC boss explained that the deregistered entities had remained inactive, failing to file annual returns for over a decade.

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According to him, some of the companies posed risks to the economy, as they could be used for fraudulent activities.

He said: “Our challenge is that we are not even deregistering in millions. This is because, as I earlier told you, business registration in Nigeria started since sometime around 1912. And what we have in our portal is from 2021. So, you can see the barrier.

“All the historical records from that year to this year are not on the portal. We are onboarding them gradually. When we complete our task, we will then have the total number of the dormant companies and they will go.

“Our system is integrated with critical agencies, such as the Federal Inland Revenue Service (FIRS), security agencies, embassies, and banks. Once a company is marked as inactive on our portal, it cannot access banking services, process embassy documents, or engage in other operations,” he said.

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Magaji explained the legal framework supporting these actions, saying: “If a company remains dormant for over 10 years, we are empowered to deregister it. Additionally, even if a company has been inactive for two years without filing annual returns, I can deregister it under the law.”

The registrar general attributed the success of CAC’s measures to the political will of the Federal Government.

He added: “We have been given a free hand by Mr. President and the supervising minister to carry out our duties without interference. This has enabled us to act boldly and decisively.”

Magaji dismissed the claims that a significant number of companies were folding up due to insolvency or economic challenges.

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The CAC boss described such assertions as exaggerated.

He added: “While some businesses apply for voluntary winding up, the numbers of such companies are negligible. Many of these cases arise from changes in business focus rather than economic difficulties. For instance, a company like Nokia transitioned from producing phones to manufacturing vehicle tyres.”

Magaji noted that technological advancements and shifts in business strategies were driving many companies to restructure rather than exit the market.

He said CAC hosts Nigeria’s Beneficial Ownership Register, a platform providing free access to information about companies and their significant controllers.

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“Nigeria is one of the global leaders in implementing the beneficial ownership register. We are hosting the register at bor.cac.gov.ng. This transparency ensures that even individuals with indirect control of a company must disclose their interest within 30 days,” he said.

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