The Department of Petroleum Resources (DPR) has denied reports by some section of the media alleging that the agency failed to remit and diverted the sum of $950 million royalty payment to the Federation Account between 2011 and 2014.
According to a statement by the DPR made available to M&P, the reports claimed to draw information from the outcome of the meeting of an Ad Hoc Committee on $17 Billion Stolen from Undeclared Crude Oil and Liquified Natural Gas of the House of Representatives.
The management of the DPR noted that it had become necessary to make clarifications on the erroneous and misleading allegation which is capable of creating negative impression in the minds of the general public.
Consequently, the DPR wishes to state that it has not at any time failed to remit royalty payment to the Federation Account as alleged in the publication.
The agency also stated it does not physically collect royalty payments or other forms of revenue on behalf of government and neither does it remit payments or keep accounts in this respect. The Department ensures that all royalty payments and other accruable revenues to Government are paid directly into the Federation Account by all the operating companies or equity holders in the Upstream Sector of the oil and gas industry.
Similarly, the statement added that DPR does not maintain any secret account singularly or in conjunction with any other parastatal of government. All revenue accruable as a result of the Department’s supervisory and regulatory functions are paid into the Federation Account with CBN, which is managed by the Office of the Accountant General of the Federation (OAGF).
"The claim that $10.2 million was received in April 2011 by DPR as royalties from an operating company is inaccurate. The allegation that $121.263 million was remitted, and $10.157 million diverted in 2011 is unfounded as the total payments made to the Federation Account by the companies for the period was $436.514 thousand as receipted by the OAGF for concession rentals", the statement maintained, reiterating that the claim that the total sum of $44.770 million was not credited to the federation account is baseless.
Furthermore, the allegation that in April 2013, $117.583 million was paid out of $281.750 million accruable and the rest diverted is not correct. The total accruable royalty payment by companies to the Federation Account during the period was $563.502 million.
"In August 2013, our effective regulatory and monitoring of the oil and gas activities, resulted in the receipt of $485.882 million into the Federation Account paid by the upstream companies. Therefore, the allegation that DPR diverted $242.715 million is baseless", DPR revealed.
Contrary to the claim that the agency concealed $300 million in March 2014, total remittances into the Federation Account by the companies whose operations fall within the Department’s regulatory purview stood at $701.915 million.
It is important to categorically state that the explanation provided above is verifiable from the relevant agencies of the Government. Therefore, any information to the contrary is false and should be ignored by the public.
The DPR wishes to assure all stakeholders and the public that it will continue to deliver on its regulatory and supervisory mandate in the oil and gas industry in alignment with its core values of transparency, accountability and adherence to applicable laws of the Federation for value creation to the common wellbeing of the general public.
M&P Nigeria, Agency Report