Low oil price: PEN­GAS­SAN wants DPR 4% col­lec­tion cost in­creased

Daily Trust - - BUSI­NESS - By Daniel Adugbo

Oil work­ers un­der the Petroleum and Nat­u­ral Gas Se­nior Staff As­so­ci­a­tion of Nige­ria (PEN­GAS­SAN), Depart­ment of Petroleum Re­sources (DPR) branch have called for an up­ward re­view of the four per cent cost of rev­enue col­lec­tion for the depart­ment.

Im­me­di­ate past pres­i­dent of PEN­GAS­SAN DPR branch, Com­rade Amba Ndoma Egba, made the call in a farewell speech at the union’s tri­en­nial del­e­gates’ con­fer­ence held in Abuja re­cently.

Egba said the dwin­dling oil prices has made this re­ceiv­able amount to be­come in­suf­fi­cient in cater­ing for the DPR’s op­er­a­tions, with an up­ward re­view in­evitable.

For­mer Pres­i­dent Good­luck Jonathan had last year ap­proved the re­ten­tion of four per cent cost of col­lec­tion by the DPR. The ap­proval meant that the agency will re­tain four per cent of the rev­enue it col­lects on be­half of the Fed­eral Gov­ern­ment rather than de­pend on bud­getary pro­vi­sions for its op­er­a­tions.

The DPR is em­pow­ered by the Petroleum Act of 1969 as amended, to col­lect roy­al­ties on pro­duc­ing con­ces­sions on be­half of the Fed­eral Gov­ern­ment.

The Direc­tor of the DPR, Mr. Morde­cai Ladan, in his ad­dress, ad­mit­ted that though the depart­ment has had it rough, es­pe­cially in the area of fund­ing, it has achieved a lot with the un­der­stand­ing of the union.

He said it was the con­tri­bu­tion of the as­so­ci­a­tion to­wards bet­ter fund­ing of the DPR since its ex­ci­sion from the NNPC in 1988 that led to the ap­proval of the 4 per cent cost of col­lec­tion for the DPR in 2014.

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