NUPRC Stresses On Accurate Accounting, Payment Of Hydrocarbon Taxes

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has emphasised the need for accurate accounting of crude oil, gas and condensate production, in order to ensure that the correct royalties and hydrocarbon taxes are paid by operators in the nation’s oil and gas sector.

To this end, the commission organised a two-day workshop for operators in the industry to sensitise stakeholders on the statutory requirements on production determination, verification and certification in the industry, in line with the provisions of the Petroleum Industry Act (PIA) 2021.

Speaking yesterday during the event tagged “Workshop on Production Determination Accounting & Reconciliation for Crude Oil Natural Gas & Condensate” the Commission chief executive, Gbenga Komolafe, said accurate accounting of production in the sector was critical in view of its economic significance as the country’s major foreign exchange earner.

The CCE, who was represented by the

executive commissioner, Development and Production NUPRC, Dr. Habib Nuhu, said “We understand the importance of crude oil production to this nation.  Over 200 million Nigerians depend on the proceeds accruing from the production of crude oil, gas and condensate.”

Komolafe further said, “So it is very important for operators to understand how to account, reconcile and report and pay the accurate taxes and royalties across the hydrocarbon value chain to the federal government.”

Dr. Nuhu was represented by the commission’s deputy director, Development and Production Engr. Enorense Amadasu.

In his presentation, deputy manager

Crude Oil Accounting, Crude Oil Terminal Operation, Abdulrahman Idris, said that in addition to sensitising  stakeholders proper accounting, the workshop also allowed for discussion of modalities and NUPRC’s requirements for production verification and certification in line with the provisions of the PIA 2021 and  obtain industry’s feedback and inputs.

The NUPRC is a direct creation of the PIA 2021 and its major  role includes regulating both Technical and Commercial aspect of the Upstream Sector of the Petroleum Industry as well as determination and collection of royalty from all producers on behalf of government,  benchmarking and monitoring costs, for optimal tax revenue generation from the business.

Giving further insight, Idris said the Upstream Sector as defined by Section 318 of the PIA 2021 covers exploration, production are lifting operations of crude oil and natural gas.