FRC, Lawmakers Set New Agenda for Transparency in Petroleum Sector
By Patience Ikpeme
The Fiscal Responsibility Commission (FRC) and the House of Representatives Committee on Petroleum Resources (Upstream) have jointly issued a series of far-reaching resolutions aimed at strengthening transparency, accountability and fiscal discipline in Nigeria’s upstream petroleum sector.
The resolutions emerged from the Legislative–Stakeholders’ Synergy Workshop held on Monday in Abuja, convened to examine the legal, regulatory and institutional gaps affecting governance in the oil and gas industry.
The workshop, facilitated by OrderPaper, brought together key stakeholders including members of the National Assembly, officials from FRC, the Nigeria Extractive Industries Transparency Initiative (NEITI), the Federal Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), operators in the oil and gas industry, civil society organizations, academics and the media. Discussions focused on strengthening oversight, improving data-driven regulatory practices, and promoting equitable distribution of petroleum revenues.
According to the communiqué, participants agreed that the Federal Government must urgently update outdated fiscal regulations to match current realities in the upstream sector, beginning with policy adjustments before undertaking statutory reviews.
They also urged the National Assembly to expedite the amendment of the Fiscal Responsibility Act (FRA) 2007 to introduce sanctions for non-compliance, arguing that such measures would significantly boost independent revenue.
Stakeholders further stressed the need for regulatory agencies to invest in technology-driven monitoring systems capable of enhancing performance tracking and curbing leakages. The FRC, NUPRC and NEITI were tasked with strengthening compliance with fiscal governance frameworks and ensuring timely submission of mandated reports. The three institutions were also encouraged to support digitalisation initiatives to improve data accuracy.
The resolutions called for closer collaboration between regulators and the National Assembly to clarify fiscal obligations and align operational mandates with relevant legislation. Agencies were also urged to adopt fiscal policies that promote long-term sustainability and efficient revenue management.
In addition, participants advocated full implementation of the Petroleum Industry Act (PIA) 2021 by the NUPRC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to tackle investment barriers, improve operational visibility and ensure clearer governance structures.
There was also a strong push for sustainable development principles, including resource replenishment, environmental protection and better stakeholder engagement. NEITI and NUPRC were advised to pay closer attention to legal clarity, competitiveness and global best practices to strengthen Nigeria’s position in the international energy market. Civil society organizations were encouraged to sustain advocacy and public monitoring to strengthen accountability.
Lawmakers were urged to intensify oversight on the implementation of the PIA. NEITI was asked to review progress in contract transparency, beneficial ownership disclosure and the Host Community Development Trusts (HCDTs). The House Committee on Petroleum Resources (Upstream) was charged with identifying and addressing gaps in existing legislation.
Stakeholders were also encouraged to engage more deeply with NEITI reports. The workshop called on the NUPRC to make operating expenditure (OPEX) figures publicly accessible through an online platform to enable host communities track their entitlements.
During the meeting, participants observed that despite ongoing reforms, transparency and data consistency remain weak across the upstream sector. They noted the need for stronger coordination between regulatory agencies and the National Assembly to ensure effective fiscal oversight.
Enhanced civil-society engagement, they said, could improve public trust and accountability. Presenters also pointed out that the Petroleum Resource Management Framework requires clear policies, strong legal structures and open governance to achieve sustainable growth. The PIA, they said, is designed to promote transparency, improve governance practices and establish commercially viable institutions within the sector.
Concerns were raised that no host community–based operator has been sanctioned for failing to meet social obligations, even though some communities that receive OPEX funds are expected to set aside a portion for future needs. Participants also noted that FRA processes support strong public finance management and that the FRC plays a pivotal role in regulating the regulators.
While the Commission has the power to demand disclosure of revenue and expenditure information, it does not yet have the authority to impose sanctions. The workshop further noted that the FRC is intensifying work with subnational governments to promote compliance with fiscal responsibility laws.
In his welcome address, the Executive Chairman of the FRC, Barrister Victor Muruako, thanked the House Committee on Petroleum Resources (Upstream) for its support and reaffirmed the Commission’s commitment to fiscal discipline and sound public finance management.
He recalled the impact of the PIA 2021, describing the Act as a “game-changer” that has improved governance and investor interest, but warned that persistent challenges such as insecurity, oil theft and weak environmental compliance still threaten the sector.
Muruako said the workshop would “review legal frameworks, share best global practices, and present a policy brief on legislative governance and its impact on fiscal transparency to ensure that oil revenues are properly accounted for.” He encouraged stakeholders, especially those in the anti-corruption community and civil society, to engage fully to build a petroleum sector that Nigerians can trust.
Goodwill messages were delivered by representatives of the Economic and Financial Crimes Commission (EFCC), the House Committee on Petroleum Resources (Upstream), and the NUPRC. They jointly called for innovation, technology-driven regulation and stronger partnerships across government institutions, industry players and host communities. They described the petroleum sector as central to Nigeria’s economic future and said that integrity, collaboration and efficiency were needed to unlock long-term prosperity.
A major feature of the event was the presentation of a Policy Brief titled Governance of Nigeria’s Petroleum Sector: Fiscal Imperatives and the 10th National Assembly. The document, developed through research on legislative governance and fiscal transparency, assessed the effectiveness of the legislature in enforcing petroleum sector compliance and identified necessary reforms to strengthen resource management and revenue allocation.
Technical sessions further enriched the discussions. In the first paper, titled PIA and Competitiveness, Mr. Ademola Henry Adigun explored the Petroleum Resource Management Framework, explaining that it seeks to deliver optimal economic outcomes, ensure full utilisation of infrastructure and promote sustainable operation.
He said the framework rests on strong legal, fiscal and governance principles. He also explained that the PIA addresses revenue gaps, declining investment and governance problems by setting clear roles, creating commercially driven entities and promoting transparency.
The second paper, Transparency and Accountability in the Upstream Petroleum Industry Post-PIA (2021), presented by Dr. Michael Uzoigwe, examined key provisions of the PIA and assessed their alignment with global standards. He said the Act has introduced strong requirements such as contract publication, beneficial ownership disclosure and the establishment of Host Community Development Trusts.
However, he noted that implementation gaps remain in contract transparency, public engagement, and community participation. According to him, the PIA has boosted investor confidence but requires stronger legislative oversight to achieve its objectives.
In the third presentation, Barrister Charles C. Abana, Director of Legal, Investigation and Enforcement at the FRC, examined the role of fiscal responsibility in strengthening Nigeria’s petroleum sector. He said outdated laws, operational inefficiencies and opacity have long hindered the industry, but that the FRA 2007 and PIA 2021 provide the structure needed to curb leakages and strengthen host community development.
He recommended treating all revenue as public funds, investing in digital financial systems, improving collaboration among institutions, enhancing staff welfare to deter corruption, and prosecuting offenders to deter impunity.
The workshop ended with a consensus that Nigeria’s petroleum sector is at a decisive moment. Stakeholders agreed that only strong institutions, technology-driven monitoring, strict fiscal discipline and effective legislation will guarantee sustained transparency and revenue protection in the upstream sector.
