The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is facing renewed scrutiny following revelations by the Office of the Auditor-General for the Federation (OAGF) that over N432 billion in debts, statutory levies, and other outstanding obligations remain unpaid by petroleum marketers.
According to the Auditor-General’s 2024 Annual Report on Non-Compliance and Internal Control Weaknesses in Ministries, Departments, and Agencies (MDAs), N431.01 billion of this amount comprises long-standing National Transport Average and bridging allowance debts owed to the NMDPRA.
The audit report, obtained from the OAGF and reviewed by our correspondent, also highlights that federal government MDAs were responsible for at least N1.39 trillion in recurring financial irregularities, control failures, and breaches of public finance regulations in 2024.
These issues, which stem from 30 major cross-cutting monetary lapses identified by the Auditor-General, point to persistent weaknesses in the management of public funds across government institutions.
Unrecovered debts involving six MDAs amounted to N882.75 billion—about 63% of the total implicated sum. The Transmission Company of Nigeria alone accounted for N446.70 billion of these debts, making it the largest single contributor. By contrast, the Nigerian College of Aviation Technology, Zaria, had the lowest figure among the agencies, with N935.56 million.
For the NMDPRA, auditors noted that the bulk of its outstanding debt has remained unresolved for years. As of August 2025, there was no evidence that the situation had improved. The N431.01 billion owed to the authority dwarfed other financial irregularities identified in the audit, such as N1.06 billion in unpaid statutory levies by 14 oil marketers and N217.84 million in unremitted Industrial Training Fund (ITF) contributions.
A breakdown of the N431.01 billion legacy debt shows that the Depot and Petroleum Products Marketers Association of Nigeria is responsible for N315.18 billion—split between N132.56 billion in bridging allowance debts and N182.62 billion in National Transport Average obligations. The Major Energy Marketers Association of Nigeria owes another N106.30 billion, while N9.53 billion is attributed to an unissued legacy debt in promissory notes by the Federal Ministry of Finance.
The Petroleum Industry Act (2021) requires the NMDPRA to maintain an Authority Fund into which revenues are paid. The audit observed that as of May 2023, the full N431.01 billion in legacy debts and allowances remained outstanding. By August 2025, auditors found no evidence of progress in recovery efforts, nor adequate justification for the non-recovery.
The OAGF attributed the situation to weak internal controls within the NMDPRA, warning that such lapses expose government funds to possible loss or diversion. While NMDPRA management acknowledged the debts as legacy receivables and claimed that reconciliation efforts with affected marketers were underway, auditors deemed this response unsatisfactory and maintained that the findings would stand until their recommendations were fully implemented.
The auditors recommended that the Authority Chief Executive should explain the non-recovery of the N431.01 billion to the National Assembly’s Public Accounts Committees and take immediate action to recover and remit the funds to the Treasury. The report also warned that failure to do so could result in sanctions for gross misconduct.
Other audit findings revealed that 14 oil marketers still owe N1.06 billion in statutory levies for 2024. The NMDPRA is entitled by law to collect 0.5% of the wholesale price of petroleum products sold in Nigeria as part of its funding. Although the NMDPRA reported having recovered N3.19 billion out of N4.25 billion in outstanding levies for January–December 2024, auditors noted that N1.06 billion remains uncollected and directed the authority to pursue its recovery.
Additionally, the NMDPRA failed to remit N217.84 million to the ITF in 2024, despite a legal obligation to remit one percent of its N21.78 billion payroll. Management stated that payment was in process, but auditors found the response unsatisfactory and insisted the finding remain until the remittance is made.
These findings come amid heightened calls for greater transparency and accountability in government revenue collection and remittance. Established under the Petroleum Industry Act 2021, the NMDPRA is charged with regulating Nigeria’s midstream and downstream petroleum sectors, including product distribution, transportation, storage, and marketing. The latest audit report increases pressure on the Authority to recover billions in legacy debts and strengthen its internal controls to prevent further revenue leakages.
However, when contacted for comment, some major oil marketers denied owing the NMDPRA, asserting that they had fulfilled all their obligations to the authority.
