By Chimezie Godfrey
A civil society organisation, Community Outreach for Development and Welfare Advocacy (CODWA), has called on the Federal Government to immediately revoke the July 7, 2023 presidential directive that split the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) four per cent Cost of Revenue Collection (CORC), describing the policy as illegal, fiscally reckless and contrary to global transparency standards.
The group said the directive, which allocates 2.5 per cent of the revenue collection cost to NUPRC and diverts the remaining 1.5 per cent to unspecified “other uses”, violates the Petroleum Industry Act (PIA) 2021 and weakens the country’s oil and gas regulatory framework.
Executive Director of CODWA, Comrade Taiwo Otitolaye, made the position known in a statement issued on Monday, noting that the call coincides with Freedom of Information (FOI) requests reportedly filed by a former lawmaker seeking clarification on the legal basis for the directive.
According to him, the presidential directive has raised concerns over transparency in the management of oil and gas revenues and could undermine accountability in the extractive sector.
Otitolaye argued that Section 16(1) of the Petroleum Industry Act empowers NUPRC to retain a percentage of the revenue it collects to fund its statutory regulatory responsibilities, stressing that such provisions cannot be altered through an executive directive without legislative approval.
“An executive memo cannot amend an Act of Parliament. Any alteration to statutory revenue allocation must pass through the National Assembly. Anything short of that is a breach of the rule of law,” he said.
The group further warned that reducing NUPRC’s funding could weaken the commission’s capacity to regulate the upstream petroleum sector, monitor production sharing contracts, curb gas flaring and enforce environmental compliance in oil-producing communities.
CODWA noted that the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) had similarly cautioned that the revenue split could adversely affect the commission’s operations and staff welfare.
The organisation also faulted the policy on transparency grounds, arguing that Nigeria, as a member of the Extractive Industries Transparency Initiative (EITI), is obligated to fully disclose all deductions from oil and gas revenues.
According to the group, NUPRC collected about ₦14.34 trillion in 2023 and retained ₦114.84 billion as cost of revenue collection, warning that the new directive could divert about ₦43.06 billion without clear information on the beneficiary agencies or legislative appropriation.
“It is unclear which government agency receives the 1.5 per cent, what the funds are used for, or whether such expenditure has National Assembly approval. This amounts to fiscal opacity,” the statement said.
CODWA further argued that the directive contradicts the Federal Government’s February 2026 Executive Order mandating direct remittance of oil revenues into the Federation Account to eliminate leakages and deductions at source.
The organisation demanded the immediate suspension and withdrawal of the directive, publication of the presidential memo, legal opinion, fiscal impact assessment and identities of beneficiary agencies within seven days.
It also urged the government to ensure full disclosure of all Cost of Revenue Collection deductions in future reports by the Nigerian Extractive Industries Transparency Initiative (NEITI) and on NUPRC’s official platform.
Otitolaye maintained that any future amendment affecting the Petroleum Industry Act should be subjected to public consultation and legislative approval rather than executive action.
He added that CODWA would continue to pursue legal and advocacy measures, including supporting the pending FOI request and engaging NEITI, the National Assembly and international partners, until greater transparency is restored in the management of Nigeria’s oil and gas revenues.