The Nigerian Midstream and Downstream Petroleum Regulatory Authority has come under scrutiny following findings that more than ₦432 billion in debts, statutory levies and other obligations involving petroleum marketers remained outstanding.

The findings were contained in the Auditor General for the Federation's 2024 Annual Report on Non Compliance and Internal Control Weaknesses in federal Ministries, Departments and Agencies.

According to the report, the largest component was approximately ₦431.01 billion in legacy National Transport Average and bridging allowance debts involving petroleum marketers.

AUDIT RAISES QUESTIONS OVER RECOVERY

The audit findings raise questions about the regulator's ability to recover significant amounts owed within Nigeria's downstream petroleum sector.

National Transport Average and bridging arrangements were historically used to help equalise petroleum transportation costs across different parts of Nigeria.

The Auditor General's findings indicate that substantial legacy obligations associated with those arrangements remained unresolved.

Other outstanding obligations reportedly included statutory levies and related payments involving operators within the petroleum sector.

OVER ₦1.39 TRILLION IN WIDER IRREGULARITIES

The concerns surrounding the petroleum regulator form part of a much broader picture identified in the Auditor General's report.

Federal Ministries, Departments and Agencies were reportedly linked to at least ₦1.39 trillion in recurring financial irregularities, internal control weaknesses and breaches of public finance regulations during the period reviewed.

The findings do not automatically mean that the entire amount was stolen or permanently lost.

Audit queries can involve unrecovered debts, unsupported expenditure, unremitted revenue, procedural violations and other financial control failures requiring explanation or corrective action.

ACCOUNTABILITY QUESTIONS

The size of the outstanding petroleum obligations is likely to increase pressure on regulators to explain what steps have been taken to recover money owed by marketers.

It also raises questions about how long the legacy debts have remained outstanding and whether adequate enforcement mechanisms have been used.

Nigeria's petroleum sector generates significant government revenue, making effective collection of statutory obligations particularly important at a time when the Federal Government faces major fiscal pressures.

The audit findings are expected to add to calls for stronger financial controls, improved debt recovery and greater accountability across federal agencies.

VNTV