The Department of Petroleum Resources (DPR) says it generated a total sum of N742,471,639,376. 96 billion for the Federal Government from January to August 2020.
Sarki Auwalu, Director, DPR made the disclosure during a visit by the Federal House of Representatives (Upstream) Petroleum Resources Committee to DPR headquarters in Lagos on Wednesday.
The Nigerian News Agency (NAN) reports that the committee, chaired by Mr. Musa Adar, visited the regulatory agency as part of its oversight duties.
Auwalu expressed optimism that the regulatory agency will exceed its revenue target for the year despite the “triple force” of the COVID-19 pandemic, falling oil prices and further OPEC production cuts.
He said: “DPR is a cumulative revenue revenue collection agency for the government from oil and gas industry operations.
”DPR operates a cashless revenue system that allows all revenue remittances to be paid directly to the federation account in full compliance with the government’s Single Treasury Account (TSA) policy.
“The agency carries out comprehensive quarterly and annual reconciliations of income payments to guarantee accurate and timely remittances to the federation’s account.
“It also collects oil and gas royalties that represent the proportional value of oil and gas production and sale from oil fields, gas flaring penalties imposed for gas flaring,” he said.
According to him, DPR collects concession rents paid for oil and gas acreage by exploration and production companies and oil revenues.
He said these consisted of legal application fees, license and permit fees, and penalties.
Auwalu said that the challenges posed by COVID-19 and falling oil prices had made it attractive for new thinking and approach to strategic repositioning and business optimization in the industry.
The DPR chief said the agency therefore took various approaches and streamlined its processes to deepen its influential role as an opportunity house and business facilitator for the industry.
He said approaches include cost control and management, strategic partnership, vertical integration, and portfolio diversification and rationalization, and operational resilience.
For his part, Adar told reporters that the National Assembly would speed up the approval of the Petroleum Industry (PIB) Law to reposition the industry.
“We want to assure Nigerians that once we receive the GDP, we will secure its swift approval.
“There is a good relationship between the executive and the legislators and there will be a bipartisan approach towards the bill because we must put Nigeria first as patriotic citizens,” he said.
He said the visit to the regulatory agency had enlightened lawmakers on the need to enact legislation that would ensure the maximization of Nigeria’s oil and gas resources.