Henry Musasizi Outlines Uganda’s Framework for Managing Petroleum Fund and Oil Revenues

Uganda petroleum fund management remains a central priority as the country prepares for commercial oil production. Henry Musasizi told Parliament that government has strengthened structures to ensure accountability, transparency, and effective oversight of petroleum revenues.

Musasizi made the remarks while appearing before the Parliament of Uganda Committee on Finance. The committee met to review the annual report of the Petroleum Fund.

Government Prepares Institutional Framework

Musasizi said the government created, trained, and coordinated a multi-sectoral institutional framework. The framework will ensure effective management, investment, and transparent reporting of earnings from the oil sector.

“In preparation for first oil, government established, trained and coordinated a multi-sectoral institutional framework to ensure effective management, investment and transparent reporting on Uganda’s petroleum revenues,” Musasizi said.

He appeared before the committee alongside technical teams from the Uganda Revenue Authority, the Petroleum Authority of Uganda, and the Uganda National Oil Company.

Sources of Petroleum Fund Revenue

Musasizi explained that the Petroleum Fund receives revenue from both tax and non-tax sources.

“The primary sources of revenue to the Fund include tax revenue from companies engaged in petroleum exploration and development. The Fund also receives non-tax revenues from the sale of data, surface rentals, training and licensing fees, signature bonuses, and related charges,” he said.

Transfers and Allocations

Musasizi told the committee that government transferred Shs115.4 billion from the Petroleum Fund to the Consolidated Fund. The transfer complied with Section 56 of the Public Finance Management Act (PFMA) Cap 171. Government used the funds to support the national budget.

He added that government allocated an additional Shs166.5 billion to facilitate operations of the Uganda National Oil Company for the Financial Year 2024/2025.

Petroleum Fund Performance Update

Musasizi provided an update on the Fund’s performance. He said that by 30th June 2025, the Petroleum Fund stood at Shs131.27 billion. The previous year’s balance stood at Shs145.98 billion.

“The statutory semi-annual and annual financial statements of the Fund for the current and prior periods were all prepared and audited by the Auditor General,” Musasizi added.

Parliament’s Oversight Role

The meeting formed part of Parliament’s oversight role. Parliament continues to promote transparency and accountability in the management of Uganda’s oil and gas revenues. The country is moving closer to commercial oil production.