By Stephen Oladele
Community Outreach for Development and Welfare Advocacy, (CODWA), has demanded reversal of the 7th July 2023 Presidential directive splitting the 4% Cost of Revenue Collection, CORC, of the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, into 2.5% for the Commission and 1.5% for “other uses”.
The CODWA, a civil society organization working on extractive governance, community welfare and accountability in the extraction frontline host communities (EFCs), CODWA condemned the directive as being illegal and abitrary
The organisation which noted that an ex-lawmaker has filed Freedom of Information, FOI, requests seeking the legality of the presidential directive, amid growing public demand for transparency in the management of oil and gas revenues alleged that the directive breaches section 16 (1) of the Petroleum Industry Act 2021.
The CODWA in a statement signed by its Executive Director, Comrade Taiwo Otitolaye, also alleged that the directive constituted threat to regulatory independence and host community protection; lack of transparency and violation of EITI Principles; and contradiction of the government’s own fiscal reform
The organisation demanded that the government should mediately revocate the directive and
subject any future changes to the PIA to public consultation and National Assembly amendment as against making executive memo.
The CODWA threatened to pursue all legal and advocacy options, including engaging the National Assembly and international partners “until transparency is restored.”
The statement reads: “Community Outreach for Development and Welfare Advocacy, CODWA, notes with grave concern the 7th July 2023 Presidential directive splitting the 4% Cost of Revenue Collection, CORC, of the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, into 2.5% for the Commission and 1.5% for “other uses”.
“This call comes at a time when an Ex-Lawmaker has filed Freedom of Information, FOI, requests seeking the legality of the presidential directive, amid growing public demand for transparency in the management of oil and gas revenues.
“As a civil society organization working on extractive governance, community welfare and accountability in the extraction frontline host communities (EFCs), CODWA condemns this move in the strongest terms.
“OUR CONCERNS
“1. Illegality and Breach of the Petroleum Industry Act 2021
“Section 16(1) of the PIA 2021 establishes NUPRC and mandates it to retain “such percentage of revenue collected as cost of collection” to fund its regulatory mandate. An executive memo cannot amend an Act of Parliament.
“Any alteration to statutory revenue allocation must go through the National Assembly. To do otherwise is a breach of the rule of law and sets a dangerous precedent.
“2. Threat to Regulatory Independence and Host Community Protection
“NUPRC is the frontline regulator responsible for monitoring 39 PSCs, curbing gas flaring, environmental degradation, and ensuring compliance in our communities. The Petroleum and Natural Gas Senior Staff Association, PENGASSAN, has warned that this split “will spell doom for Commission staff” and cripple oversight.
“Underfunding NUPRC directly translates to weaker enforcement in oil-producing communities already suffering displacement, water contamination, and livelihood loss.
“3. Lack of Transparency and Violation of EITI Principles
“Nigeria is an EITI implementing country. Requirement 4.1 of the 2023 EITI Standard required comprehensive disclosure of all revenue flows from oil, gas and mining sectors, including “cost of revenue collection (CORC)” deductions. This disclosure ought to have been done by the NEITI through its regular annual oil and gas industry audit report if NEITI is adequately functioning.
“In 2023, NUPRC collected ₦14.34 trillion and retained ₦114.84 billion as CORC. Under the split, ₦43.06 billion would be diverted.
“Nigerians do not know which MDA receives this 1.5%, what it is used for, or whether it is appropriated by the National Assembly.
“This is fiscal opacity, and recklessness by executive fiat.
“4. Contradiction of Government’s Own Fiscal Reform
“This directive contradicts the February 2026 Executive Order on direct remittance of oil revenues to the Federation Account, which was designed to block leakages and deductions at source. Creating a new deduction to fund undefined “other uses” undermines that reform.
“OUR DEMANDS
“In line with the FOI Act 2011, EITI Standard, and the Constitution of the Federal Republic of Nigeria, CODWA demands that the Federal Government:
“1. Immediately suspend and revoke the 7th July 2023 presidential directive.
“2. Publish within 7 days the full memo, legal advice, fiscal impact assessment, and the identity of the beneficiary MDA(s) of the 1.5%.
“3. Ensure full disclosure of all CORC collected, retained by NUPRC, and diverted, in the next NEITI Oil and Gas Industry Report and on NUPRC’s website.
“4. Subject any future changes to the PIA to public consultation and National Assembly amendment, not executive memo.
“CONCLUSION
“Oil and gas resources belong to the Nigerian people, and especially to the communities on whose land they are extracted. Weakening the regulator that is supposed to protect those communities in order to fund opaque “other uses” is not governance. It is fiscal recklessness.
“CODWA stands with PENGASSAN, the Ex-Lawmaker, and all Nigerians demanding answers.
“We will pursue all legal and advocacy options, including supporting the FOI request and engaging NEITI, NASS, and international partners, until transparency is restored.
“You can’t be a judge, jury and executioner over your own matter”. The Presidency must allow law, not memo, to govern our commonwealth.”
