President Bola Tinubu’s Chief of Staff, Femi Gbajabiamila, has been linked to an alleged fresh N54 billion financial scandal following claims that he unlawfully secured a share of oil and gas royalty funds belonging to the Nigeria Upstream Petroleum Regulatory Commission (NUPRC).
According to an exclusive report by Peoples Gazette, Gbajabiamila allegedly relied on a legal provision that does not support his action to facilitate the transfer of the funds shortly after the Tinubu administration assumed office in 2023.
The report claimed 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 (NIMASA), the Nigeria Customs Service and the NUPRC.
According to the newspaper, Gbajabiamila sent a memo directing that four per cent of the NUPRC’s cost of collection be divided into two portions, with 2.5 per cent earmarked for the commission’s operations and routine capital expenditure, while the remaining 1.5 per cent—estimated at about ₦54 billion—was to be set aside for capital projects.
The report stated that the memo described the earmarked funds as being for the “upgrading of crude oil and gas metering and transparency systems,” but noted that no detailed explanation was provided regarding the proposed expenditure.
Quoting the July 4, 2023 memo, Peoples Gazette reported Gbajabiamila as writing:
“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.”
The newspaper 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.
According to the report, the memo 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, Peoples Gazette said its review of the cited provision found that it merely lists the “cost of collection” as one of the commission’s sources of funding and does not authorise the Presidency or the Chief of Staff to appropriate or redistribute the funds.
The report quoted the section as stating:
“The source of the commission Fund shall be as follows – (c) cost of collection by the commission.”
The newspaper argued that the law does not empower either the President or his Chief of Staff to direct 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 the Mr President as president and C-in-C.”
The report 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) assigns the management and expenditure of the commission’s funds to 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 noted that the commission’s cost of collection reportedly rose 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 Presidential Foreign Intervention Promotion Council (PFIPC) Director-General, 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, with assurances that anyone found culpable would face prosecution.
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 be determined by the courts.
