Reps question NUPRC over dwindling revenue in signature bonuses

The management of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) faced questions from the House of Representatives on Monday over the falling revenues from signature bonuses.

The Chairman of the House Committee on Finance, Rep. James Faleke, found this out at the interactive session with revenue-generating agencies in Abuja.

He said the document presented to the committee showed that the projected N251 billion in revenue from signature bonuses in the 2024 fiscal year would drop to zero by 2026.

The lawmakers asked the commission about the revenue from the sale of federation assets to Nigerian National Petroleum Corporation Limited (NNPCL).

The commission is expected to provide details of its role in signature bonuses and steps taken to increase the monetization of the country’s oil assets.

Falake, however, called NNPCL management over federation assets bought from NUPRC with the aim of ensuring accountability of public funds.

The committee also asked for supporting documents on the projected crude oil supply for 2024–2026 and copies of the oil audit done by NUPRC.

The lawmakers also asked for details of the Commission’s readiness to meet the negotiated LPG supply to Germany, which was arranged by President Bola Tinubu during the 10th German-Nigerian business forum.

Speaking earlier, NUPRC Chief Executive Officer, Mr. Gbenga Komolafe, said that the commission was working on the proposed LPG supply to Germany.

The Commission, represented by Executive Commissioner on Economic Regulation and Strategic Planning, Mr. Babajide Fasina, said the commission had not received information on new oil blocs before they started new bid rounds.

Faleke, however, requested proof of payments made by NNPCL and a list of assets acquired, among others.

The committee asked NUPRC to provide clear plans put in place to meet up with projected crude oil in 2024/2026 amid oil theft.

NAN reports that in January 2022, NUPRC management said 33 companies failed to pay the required signature bonuses for the 2020 marginal field bid round within the 45-day window.

Komolafe said this during a meeting with marginal field awardees and leaseholders.

Marginal fields are smaller oil blocks developed by indigenous companies, and they have not been exploited in at least the last ten years.

In May 2021, the Department of Petroleum Resources (DPR)—now NUPRC—completed the first successful bid programme after 18 years.

Over 600 companies had applied to be pre-qualified for the bid rounds of 57 marginal fields, which began on June 1, 2020.

Speaking at the meeting, Komolafe said efforts were being made to close the bid round and that the commission would support successful awardees who had paid the required signature bonuses.

57 fields were identified for the 2020 bid round exercise, and a total of 665 entities expressed interest.

After extensive evaluation processes as laid down in the guidelines, 161 entities emerged as potential awardees,” he said.

“Signature bonuses for 119 awards were fully paid, nine awards were partly paid for, and 33 awards were not paid for. This has led to various challenges preventing the close-out of the exercise.

“The marginal field guidelines provided for 45 days for the payment of signature bonuses, which have since passed, and we have issued a public notice to that effect as well as notified the relevant potential awardees.

“It is important to inform you that we are making concerted efforts to ensure that the 2020 MFBR exercise is completed as soon as possible,” he said at the meeting.