ABUJA — The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has come under intense official scrutiny following audit findings by the Office of the Auditor-General for the Federation (OAuGF) uncovering ₦431.01 billion in unrecovered legacy debts, bridging allowance liabilities, and statutory levies withheld by petroleum marketers.
The audit disclosure—detailed in the Auditor-General’s latest report on non-compliance and internal control weaknesses across federal ministries, departments, and agencies—reveals that as of mid-2025, the downstream regulator failed to recover accumulated debts arising from the National Transport Average (NTA) and petroleum equalization bridging mechanisms.
The audit highlighted severe internal control weaknesses within the NMDPRA, warning that the failure to enforce statutory recovery mechanisms exposes public funds to diversion and long-term financial loss.
Key Financial Breakdown & Audit Findings
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Marketer Association Liabilities: The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) accounts for the largest share of the debt at ₦315.18 billion (comprising ₦182.62 billion in NTA obligations and ₦132.56 billion in bridging allowances). The Major Energy Marketers Association of Nigeria (MEMAN) accounts for another ₦106.30 billion.
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Unpaid Statutory Levies: Beyond the legacy bridging debts, 14 petroleum marketers defaulted on ₦1.06 billion in statutory 0.5 percent wholesale levies mandated under the Petroleum Industry Act (PIA) 2021 to fund midstream regulatory operations.
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OAuGF Rejection of Regulator’s Defense: While NMDPRA management defended the ₦431.01 billion figure as “legacy receivables currently undergoing reconciliation,” the Auditor-General rejected the explanation, directing the Chief Executive of the Authority to appear before the National Assembly Public Accounts Committee and immediately initiate formal recovery and remittance to the Consolidated Revenue Fund.
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Marketer Responses: Major marketing groups contacted regarding the findings maintained that their verified financial obligations to the downstream authority had been settled, pointing to ongoing discrepancies in legacy reconciliation frameworks.
