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Reps Panel direct NUPRC to produce details of crude products from 2021

Reps Panel direct NUPRC to produce details of crude products from 2021


OrderPaperToday-
The House of Representatives has requested details of crude oil production from October 2021 to March 2022, with a view to determining the revenue accrued to the Federation through Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The directive was given during an investigative hearing organised by the House Committee on Finance, chaired by Abiodun James Faleke (APC Lagos) on the ‘Revenue Monitoring Exercise.’

As contained in the documents submitted to the Committee, a total sum of N695.617 billion in revenue was realised by the Commission for the period under review.

Meanwhile, the sums of N616.182 billion; N19.556 billion; N39.085 billion; N3.502 billion; N6.693 billion, and N10.599 billion were generated from Oil Royalty, Gas Royalty, Gas Flared Penalty, Concession rentals, MISC Oil Revenue, and Signature Bonus, respectively.

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The lawmakers also discovered that 24 contracts awarded from the last quarter of 2021, amounted to N55.438 million for the renewal of a contract for the provision of 20 Megabits Per Second (Mbps).

It also included internet bandwidth in offices of the Department of Petroleum Resources (DPR) nationwide to VDT Communications Ltd on October 18, 2021; N20.464 million for procurement and installation of network & communication devices for DPR Calabar Field and N10.899 million for Akure Field Offices awarded to Zionchrome Int’l Nigeria Ltd on October 5, 2021.

A contract worth N49,921,250 was also awarded for engaging the service of a consultant to facilitate Capacity Building on Upstream Petroleum Operations for relevant National Assembly Staff and Legislative Aides for the NUPRC on the 24th of December 2021 awarded to Priceless Craft.

Another contract of N48.268 million to facilitate strategic engagement on budget and revenue for NUPRC was also discovered to be awarded on the 24th of December 2021 as well as N39.295 million contract for separation and reconfiguration of smart inspector (Formelo) mobility workforce application for NUPRC; N78.045 million for renewal of Automated Upstream System (AUS) for NUPRC; among others.

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Responding to questions on the Fiscal Responsibility Commission’s activities, Bello Aliyu explained that from the N4 billion liabilities inherited from the defunct Department of Petroleum Resources (DPR), it was scaled down to N1.7 billion was taken over by the Commission.

“The Nigeria Upstream Regulatory Commission is a new agency. It is the name that is new. The name was added to our purview in December last year. So, we now wrote to them a letter sometime in March to inform them of their responsibilities to Fiscal Responsibilities Act 2007 and then to inform them that, the obligations of DPR which was their former name is now transferred to them and that liability for DPR that they are responsible for is N1,739,837,045.

This we informed them sometimes in March. I think 29th of March,” he said.

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While presenting NUPRC’s position, Babajide Fashina said: “Details of revenue sources is based on oil royalty, gas royalty, gas sales royalty, gas flaring penalty, concession rental, miscellaneous oil revenue, and signature bonus and all these are paid into the generation account, the Commission does not maintain any account of its own.

On the second one, which is the schedule of revenue collected, from October 2021 till February date, we have a total collection of N695,617,119.49. That was from October 2021 to February 2022.

And the breakdown as shown, the oil royalty which was the large one, we have N616 billion, the gas royalty, N19 billion, had flare N39 billion, concession rental, N3.5 billion then Miscellaneous oil revenue, N6.69 and all these have been paid into the Federation Account.

From January to December 2021, we were able to generate about 2.7 trillion for the Federation,” he noted.

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He argued that the differential observed by the Committee would be resolved during the reconciliation with Fiscal Responsibility Commission.

In his ruling, Faleke said: “Royalty, N88.7 billion, I am reading from your figure. From what volume of crude? We need to know. You need to create a column to tell us the volume of crude for that particular period you are referring to.  Because we have to monitor this in line with our production. 

So, all the revenue items you need to create that column for us to know what you are talking about. This is just bandying figures before us without foundation.

The Deputy has also advised that, in every budget, there are revenues expected of you and you are aware of that from the Budget Office. So, you need to also create that column, okay.

READ ALSO: Petroleum products smuggling and regulatory gaps

What is the expectation? What have you done to see that you have you surpassed or you have not surpassed? We would be able to ask you the reason for that. So that gives us proper reporting, then we can interact properly rather than just guessing.

So, we will give you another day to do two things. Give us this proper report that we are asking. Two, do a final reconciliation with Fiscal Responsibility and get back to us next week.”

In his ruling, Faleke mandated the Commission to submit details reports on the volume of crude oil produced and details on the projected revenue.

Lizzy Chirkpi
Lizzy Chirkpi
Lizzy Chirkpi has a BA in French and is a senior reporter at OrderPaper. She has keen interest in photojournalism and video documentary. She's also a writer and author of a book, "Pourquoi Le Francais." She likes reading, traveling and watching movies.
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