Gbajabiamila linked to alleged ₦54bn NUPRC fund controversy as Presidency defends directive By Dally Iyamu
Gbajabiamila linked to alleged ₦54bn NUPRC fund controversy as Presidency defends directive By Dally Iyamu
Chief of Staff to the President, Femi Gbajabiamila, has been linked to an alleged fresh ₦54 billion financial controversy following claims that he unlawfully facilitated the transfer of a portion of oil and gas royalty funds belonging to the Nigeria Upstream Petroleum Regulatory Commission.
According to an exclusive report by Peoples Gazette, Gbajabiamila allegedly relied on a legal provision that does not support the action to authorise the transfer of the funds shortly after the Tinubu administration assumed office in 2023.
The newspaper reported that within weeks of President Tinubu’s inauguration, the Chief of Staff began seeking funds from revenue-generating agencies, including the Nigeria Revenue Service (formerly the Federal Inland Revenue Service), the Nigerian Maritime Administration and Safety Agency, the Nigeria Customs Service and the NUPRC.
According to the report, Gbajabiamila issued a memo directing that four per cent of the NUPRC’s cost of collection be split into two portions.
It stated that 2.5 per cent should be retained for the commission’s operations and routine capital expenditure, while the remaining 1.5 per cent—estimated at about ₦54 billion—should be ring-fenced for capital projects.
The memo reportedly stated:
“Mr President has directed that the Budget Office and the Accountant General of the Federation implement the approval in paragraph 2.a. above and ring fence the 1.5 per cent which may only be utilised for upgrading crude oil and gas metering and transparency systems upon obtaining relevant approvals.”
Peoples Gazette further alleged that Gbajabiamila justified the directive by citing Section 24(2)(c) of the Petroleum Industry Act (PIA) 2023, claiming the law authorised the collection.
The memo reportedly stated:
“The authority to collect these fees is vested in statute—Section 24(2)(c) of the Petroleum Industry Act (PIA) (2023). However, the specific percentage collectable is subject to presidential approval.”
However, the newspaper said its review of the cited provision showed that it merely lists the “cost of collection” as one of the commission’s funding sources and does not authorise the Presidency or the Chief of Staff to appropriate or redistribute the funds.
It quoted the section as stating:
“The source of the commission Fund shall be as follows – (c) cost of collection by the commission.”
According to the report, the law does not empower either the President or his Chief of Staff to determine how the commission’s internally generated funds should be shared.
Responding to the allegations, the Presidency defended Gbajabiamila, insisting that he merely conveyed the President’s directive.
Presidential spokesman Bayo Onanuga was quoted by Peoples Gazette as saying:
“Gbajabiamila did not commandeer any money.
The presidential order given to the NUPRC is within the right of Mr President as President and Commander-in-Chief.”
The newspaper noted that the Presidency did not directly address claims that the legal provision cited in the memo was inapplicable.
According to Peoples Gazette, further examination of the Petroleum Industry Act showed that Section 24(1) vests the management and expenditure of the commission’s funds in the National Assembly through the appropriation process.
The newspaper quoted the provision as stating:
“The commission shall maintain a fund into which money accruing to the commission shall be paid, and all expenditures of the commission shall be subject to appropriation by the National Assembly.”
The report maintained that the President lacks the statutory authority to determine how the NUPRC’s cost-of-collection revenue should be allocated.
It further stated that the commission’s cost of collection reportedly increased from ₦98 billion in 2022 to about ₦145 billion following the Federal Government’s foreign exchange policy reforms.
Beyond the latest allegation, Peoples Gazette also referenced previous controversies involving Gbajabiamila, including reports that he was disbarred in the United States over alleged professional misconduct and more recent allegations by the Director-General of the Presidential Foreign Intervention Promotion Council (PFIPC), Adeniyi Adeyemi, who accused the Chief of Staff of demanding bribes linked to appointments and agency funding.
According to the newspaper, Adeyemi alleged that Gbajabiamila received ₦400 million through a proxy and later demanded an additional ₦200 million to facilitate his appointment.
Adeyemi was quoted as saying:
“The major rationale behind the disagreement between myself and the Chief of Staff is because he allegedly requested 48 per cent of the take-off grant (₦27,395,510,136) from the same agency, which he denies, to which I rejected after he collected a total sum of ₦400 million by proxy, with a remaining balance of ₦200 million to secure the said appointment.”
He further argued that if the PFIPC did not legally exist, its inclusion in the 2026 Appropriation Act would raise serious questions about the integrity of the national budget.
The Presidency has since directed that the PFIPC-related allegations be investigated within 30 days, assuring that anyone found culpable would be prosecuted.
Peoples Gazette noted that the allegations surrounding the NUPRC funds and other corruption claims remain unresolved, while the legality of the presidential directive concerning the commission’s revenue may ultimately
