DPR records 31 per cent increase in revenue generation
THE much needed reforms that will turn around the oil and gas sector for the benefit of Nigerians may not be realised in the immediate future if the Petroleum Industry Bill (PIB) is not passed before the expiration of the current government on May 29, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) have said.
Speaking in Abuja recently, the Chairman of the PENGASSAN Department of Petroleum Resources (DPR) branch, Isah Ibrahim, who expressed worry about the slow pace of work on the bill, observed that the Oil and Gas Sector Reform Implementation Committee (OGIC) remains the authentic bill that is capable of turning the sector around for the better.
While calling on both the National Assembly to work together for accelerated passage, Ibrahim charged the National Assembly to be wary of any ulterior additions that could be injurious to the bill.
His words: “Let us remember that the main thrust of the PIB is to put the oil and gas industry on an even and transparent footing and make it more proactive.
Most importantly to enable the country realise its full potential in the sector to encourage more indigenous participation in the industry, which has remained the life-line of national economy. Therefore, we appeal to the National Assembly and the Executive to collaborate and ensure the speedy passage of the PIB as conceived by the Oil and Gas Sector Reform Implementation Committee (OGIC) report.”
Meanwhile, the two unions have lauded the management of DPR for surpassing its projected earnings for 2010 in spite of operational challenges.
According to revenue profile of the department, the target in 2009 was N328, 579, 400,000 while it achieved N532, 781, 108, 908 thereby recording N204, 201,708, 908 surplus. In 2010, the target was N494, 553, 940, 000 but the department recorded N698, 420, 674, 729 achieving N203, 866, 734, 729 surplus.
The figures then showed an N165.639 billion or 31.1 per cent over N532.781 billion revenue collected in 2009.
Reacting to the achievement, the NUPENG branch chairman, Aforishe Agbuwabi lauded DPR management for prudence deployment of resources.
He added that the DPR is grossly under funded despite huge funds generated on behalf of the government without any financial autonomy, but has to rely fully on appropriated funds from the Federal Government.
He also revealed that the oil and gas watch body is experiencing inadequate manpower, operational facilities and equipment to efficiently and effectively carry out its statutory functions.
Despite all these challenges, he observed that the country has witnessed relative sanity in the industry through the relentless efforts of DPR, which is more responsive to averting product adulteration, diversion, hoarding and unjustifiable profiteering.
He explained that the Department is a statutory agency set up by Act 33 of 1977 to supervise and regulate all the activities in the Oil and Gas Industry in the country. It is also vested with the necessary powers by various legal provisions to discharge its functions and responsibilities, which include among other things.
The DPR also generates revenue on behalf of the Federal Government of Nigeria through royalties, petroleum profit tax, penalties, licenses and permits, signature bonuses, conversion of OPL to OML fees, assignment of interest, rentals of OPL/OML, relinquishment fees, regulatory size of OPL and OML among others.
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