An allegedly leaked memo from Aso Rock has revealed how Chief of Staff to President Bola Tinubu, Femi Gbajabiamila, allegedly used a non-existent provision in the Petroleum Industry Act to corner N54 billion from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The explosive document, dated July 4, 2023, has raised fresh questions about the management of oil sector revenues under the current administration.
Details of the Aso Rock Memo
According to the alerged memo authored by Gbajabiamila, the NUPRC was directed to allocate 1.5 percent of its annual “cost of collection” for the “upgrading of crude oil and gas metering and transparency systems.” The remaining 2.5 percent was to be used for operations and routine capital expenditure.
At the time, NUPRC’s cost of collection stood at N145 billion. The 1.5 percent allocation translated to approximately N54 billion. The memo instructed the Budget Office and the Accountant General of the Federation to implement the directive and “ring fence” the funds.
Gbajabiamila justified the move by citing Section 24(2)(c) of the Petroleum Industry Act 2021, claiming the authority to collect such fees was vested in statute and subject to presidential approval.
Alleged Fake Legal Basis
However, a close reading of the cited section shows it only states that one of the sources of the Commission’s fund shall be “cost of collection by the commission.” It does not empower the President or any official to dictate a specific percentage split or direct how the funds should be utilised in the manner outlined in the memo.
Legal experts who reviewed the document noted that the PIA clearly vests the power to appropriate revenues in the National Assembly, not in the executive through administrative memos.
The directive came just weeks after President Tinubu assumed office in May 2023, at a time when several government agencies were reportedly being approached for funds.
Presidency Defends the Directive
The Presidency has defended Gbajabiamila, insisting that he acted on presidential instructions and within the law. Presidential spokesman Bayo Onanuga stated that the order given to NUPRC was within the rights of the President as Commander-in-Chief.
“No money was commandeered,” Onanuga said, adding that the President had ordered a 30-day investigation into related corruption allegations.
Growing Concerns Over Revenue Management
The revelation has added to existing concerns about how oil revenues are being managed. Critics argue that the use of internal memos to direct billions of naira without clear legislative backing undermines transparency in the petroleum sector.
The NUPRC has not issued an official statement on the matter as of press time.
With the memo now in the public domain, many Nigerians are demanding a full and transparent investigation into how the N54 billion was eventually utilised and whether due process was followed.
