This Division ensures the Nigerian government benefits economically from petroleum resources. The division’s mandate includes managing royalties, rentals, and fees, setting market-reflective oil prices, monitoring licensees’ financial viability, approving commercial aspects of field development plans, and conducting economic studies and due diligence.
UNITS OF ECONOMIC REGULATION DIVISION
Key Functions
Revenue monitoring
Revenue control
Revenue analysis
Process improvement
Deliverables
Coordinate revenue assurance procedures on the various Revenue platforms such as COTEX, GATEX, REMITA, IGR, etc.
Publish statutory Internally Generated Revenue (IGR) and Miscellaneous Oil Revenue (MOR) reports in compliance with extant fiscal and financial regulations.
Key function
Fiscal advisory services
Fiscal Policy Implementation
Promoting competitive upstream Fiscal environment
Regulatory compliance
Deliverables
Issuance of CTA and CHA permits for submitted applications
Publish report of assessments and evaluation of company adherence to fiscal policy and regulation
Administration of upstream licenses and agreements including PSCs PPLs, JVs, and PML agreements
Key Functions
Revenue reporting
Revenue audit engagement
Stakeholder engagement
Process improvement
Deliverable
Monthly revenue reports for internal and external stakeholders
Key functions
Revenue and royalty management
Fiscal value analysis
Conduct market research on prices and valuation
Regulatory compliance and reporting
Deliverables
Publish quarterly recommendations for optimizing tax and royalty opportunities through innovative fiscal models and strategy
Oversee compliance with mandated self-assessment regulation for companies operating in the upstream sector
Publish report of market analysis to monitor trends and enable the nation’s crude grade remain competitive in the international markets
Key Functions
Revenue accounting and management
Information systems management
Reporting and analysis
Process improvement
Deliverables
Prepare financial reports on revenue performance
Develop and maintain a reliable database system
Prepare monthly reports that Identify areas of revenue leakage risk
Key Functions
Valuation of Petroleum Assets
Conducting Financial Due Diligence on upstream petroleum transactions
Field Development Plan budgeting analysis
Monitoring Financial viability and capacity of E & P companies and Oil and Gas Service Companies
Project cost management
Assessment of statutory funds – Decommissioning and Abandonment (D & A) Fund, Environmental Remediation Fund (ERF), Host Community Development (HCD) Fund.
Deliverables
Petroleum Assets Valuation Reports
Upstream Petroleum transactions Financial Considerations Reports
Field Development Plan Commercial Evaluation Reports
Annual E & P Companies and Permit Holders Financial Performance, Viability and Capacity Report
Upstream project cost Benchmarks and Analytics
Annual Statutory Funds Assessment Reports
Vision : Be Africa’s leading Regulator.
Mission : Promoting sustainable value creation from Nigeria’s Petroleum Resources for shared prosperity.