A memo from the Presidency has triggered fresh controversy after reports alleged that President Bola Tinubu’s Chief of Staff, Femi Gbajabiamila, authorised the allocation of ₦54 billion from the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) by relying on a legal provision that has been described as inapplicable.
According to documents published yesterday, the July 4, 2023 memo directed that four percent of the NUPRC’s cost of collection be shared, with 2.5 percent earmarked for the Commission’s operations and routine capital projects, while 1.5%, estimated at ₦54 billion, was to be reserved for the “upgrading of crude oil and gas metering and transparency systems”.
The report said the memo cited Section 24(2)(c) of the Petroleum Industry Act (PIA) 2023 as the legal basis for the directive. However, an examination of the law reportedly showed that the cited provision merely identifies the Commission’s cost of collection as one of its funding sources and does not authorise the Presidency to reallocate or appropriate the funds.
The Presidency defended the action, insisting that Gbajabiamila merely implemented President Tinubu’s directive. Presidential spokesman Bayo Onanuga reportedly maintained that the decision was within the constitutional powers of the President and dismissed suggestions of wrongdoing.
However, the publication argued that Section 24(1) of the Petroleum Industry Act assigns the authority to approve the Commission’s expenditure to the National Assembly, raising questions over whether the Presidency had the legal authority to direct the allocation of the funds. The report noted that the NUPRC’s cost of collection rose from ₦98 billion in 2022 to about ₦145 billion in 2023, following the unification of Nigeria’s exchange rates under the Tinubu administration.
Beyond the NUPRC controversy, the report revisited previous allegations involving Gbajabiamila, including his past disciplinary issues with the State Bar of Georgia in the United States, allegations of bribery during the passage of the Petroleum Industry Bill, and his recent involvement in the PFIPC controversy.
The PFIPC matter centres on allegations by the council’s Director-General, Adeniyi Adeyemi, who accused the Chief of Staff of demanding financial inducements in connection with his appointment and the council’s proposed take-off grant. Gbajabiamila has denied any wrongdoing. President Tinubu has directed that the PFIPC allegations be investigated, with officials found culpable expected to face prosecution if the claims are substantiated.
The allegations surrounding the NUPRC allocation and the legal interpretation of the Petroleum Industry Act have yet to be tested in court, and no judicial determination has been made on the legality of the Presidency’s actions.
