By: Fatou Krubally
An audit of the Petroleum Commission’s 2025 financial statements has raised concerns over the management of D271.5 million in petroleum sector revenues.
This, according to the auditors, was recorded under the Petroleum Sector Development Account (PSDA), saying the funds remained under the control of the Ministry of Petroleum and Energy rather than the Petroleum Commission.
The issue was highlighted in the commission’s audit report and management letter for the period from 1 January to 31 December 2025, which was examined by the National Assembly’s Finance and Public Accounts Committee (FPAC).
According to the audited financial statements, the D271.5 million was disclosed as both a contingent asset and a contingent liability. The report said the funds were generated from petroleum sector activities, including data sales, block licence fees and other payments made by international oil companies and industry operators.
The audit notes that although the Petroleum Commission invoices companies for the payments, the account receiving the revenues is fully controlled and managed by the Ministry of Petroleum and Energy.
“The Commission invoices the different corporations as liabilities become due; nonetheless, the Ministry of Petroleum and Energy controls and manages this account entirely,” the financial statements stated.
The report explained that the corresponding liability was recognized because the commission neither owned nor managed the funds.
During the FPAC hearing, lawmakers questioned the arrangement, arguing that the Petroleum Commission, as the statutory regulator of the upstream and midstream petroleum sectors, should exercise clear oversight and accountability over revenues generated from petroleum activities.
Commission officials told the committee that the arrangement predated the establishment of the Petroleum Commission and was based on an earlier administrative interpretation of how the funds should be managed.
They explain that the Petroleum Sector Development Account has been operated as a holding account under the Ministry of Petroleum and Energy, while the Commission receives its operational funding through the national budget. However, the officials acknowledge that discussions are underway on whether the funds should be transferred to the Commission in accordance with the Petroleum Commission Act.
The audit cited Section 17(2)(a) of the Petroleum Commission Act, which provided that the Commission’s funds include revenues derived from signature bonuses, licence rentals and the sale and licensing of petroleum data.
FPAC members directed the Commission to engage the relevant authorities to clarify the ownership, custody and management of the funds and report back to the committee.
The audit also showed that the Petroleum Commission recorded a net deficit of D8.7 million in 2025 after posting total income of D42.07 million against total expenditure of D50.78 million.
Despite the deficit, the Commission reported cash and bank balances amounting to D202.5 million at the end of the financial year, including funds held in the Training and Resource Account.