President Bola Tinubu’s Chief of Staff, Femi Gbajabiamila, allegedly cited a provision of the Petroleum Industry Act that does not grant the power claimed in a 2023 memo seeking to ring-fence about N54bn from the Nigerian Upstream Petroleum Regulatory Commission’s revenue, according to an investigation by Peoples Gazette.
The report, based on documents it reviewed, said Gbajabiamila sought presidential approval to allocate 1.5 per cent of NUPRC’s annual cost of collection to upgrade crude oil and gas metering and transparency systems.
However, the newspaper’s review of the law found that the section cited in the memo only identifies the commission’s cost of collection as a source of its fund and does not expressly authorise the President to determine how the money should be allocated.
According to the report, Gbajabiamila, in a memo dated July 4, 2023, requested that four per cent of NUPRC’s annual cost of collection be divided into two portions.
The memo proposed that 2.5 per cent be used for the commission’s operations and routine capital expenditure, while another 1.5 per cent, amounting to about N54bn, would be ring-fenced for upgrading crude oil and gas metering and transparency systems.
Gbajabiamila reportedly directed the Budget Office and the Accountant-General of the Federation to implement the approval attributed to the President.
“Mr President has directed that the Budget Office and the Accountant General of the Federation implement the approval in paragraph 2.a. above and ring fence the 1.5 per cent which may only be utilised for upgrading crude oil and gas metering and transparency systems upon obtaining relevant approvals,” the memo reportedly stated.
Report questions legal basis
The Gazette reported that Gbajabiamila justified the request by citing Section 24(2)(c) of the Petroleum Industry Act.
“The authority to collect these fees is vested in statute—Section 24(2)(c) of the Petroleum Industry Act (PIA) (2023). However, the specific percentage collectable is subject to presidential approval,” he reportedly wrote.
But according to the newspaper’s review of the law, Section 24(2)(c) simply states that the commission’s fund shall include the “cost of collection by the commission.”
The report said the provision does not contain an authorisation empowering the President or the Chief of Staff to take the 1.5 per cent allocation being sought.
The newspaper also cited Section 24(1) of the PIA, which provides that NUPRC’s fund should receive money accruing to the commission and that all expenditures of the commission are subject to appropriation by the National Assembly.
The provision, according to the report, raises questions about whether the President has the authority to determine how NUPRC’s revenue should be shared or spent.
The report noted, however, that whether the presidential directive amounted to an overreach of executive powers would ultimately have to be determined by a competent court.
Presidency defends Gbajabiamila
The Presidency defended Gbajabiamila, saying he was acting on the President’s instructions.
Special Adviser to the President on Information and Strategy, Bayo Onanuga, reportedly rejected the suggestion that the Chief of Staff commandeered the money.
“Gbajabiamila did not commandeer any money,” Onanuga was quoted as saying, adding that the presidential order given to NUPRC was within the President’s powers.
According to the report, the Presidency did not directly address the allegation that the PIA provision cited in the memo did not support the authority being claimed.
NUPRC revenue increased
The investigation reported that NUPRC’s cost of collection rose from N98bn in 2022 to about N145bn following the Tinubu administration’s unification of the official and parallel foreign exchange rates.
The reported increase meant that the 1.5 per cent allocation referred to in the memo amounted to about N54bn.
The report also questioned what specific projects would qualify as “upgrading crude oil and gas metering and transparency systems” for such a large allocation.
Other allegations against Gbajabiamila
The Gazette investigation also revisited previous allegations involving Gbajabiamila, including claims relating to his time as Speaker of the House of Representatives and an earlier disciplinary case involving him in the United States.
Those allegations, however, are separate from the N54bn NUPRC matter and do not by themselves establish that the 2023 transaction was unlawful.
More recently, Gbajabiamila has faced allegations linked to the controversial Presidential Foreign Intervention Promotion Council.
The council’s Director-General, Adeniyi Adeyemi, accused the Chief of Staff of receiving N400m through a proxy and demanding another N200m in connection with his appointment.
Gbajabiamila has denied wrongdoing, while President Tinubu has ordered an investigation into the allegations and directed that it be concluded within 30 days.
The latest report has therefore raised questions about the legal basis for the 2023 NUPRC revenue allocation and the extent of presidential powers over revenues belonging to government agencies.
The allegations have not been established by a court, and no finding of criminal liability has been made against Gbajabiamila or President Tinubu over the N54bn claim.
