By Adewale Sanyaolu
At a period when most Ministries Departments and Agencies(MDAs) are struggling to met their 2021 revenue budget, the Department of Petroleum Resources said it has increased its revenue target to N5 trillion.
This was even as it said that the latest target would be achieved by year end, which is barely four months from now. Director and Chief Executive at DPR, Mr. Sarki Auwalu, stated this when he a paid a visit to the Executive Secretary of the Petroleum Technology Development Fund (PTDF), Mr. Bello Gusau, in Abuja, yesterday.
Auwalu explained that as at the end of August, over 70 per cent of the initial N3.2 trillion revenue target had been realised, prompting the agency to set a new target of N5 trillion.
The new budget benchmark represents an increase of N1.8 trillion over the initial target of N3.2 trillion.
The DPR executive secretary explained, “Last year, we exceeded our revenue target. We were given N1.5 trillion, but we were able to generate N2.7 trillion for government and this year, our revenue budget was N3.2 trillion and as of August, we had generated up to 70 per cent. So, it is obvious that this year, we are going to exceed the target.
“We are targeting N5 trillion for government, but as it is now, the N3.2 trillion as of 30 August, we had generated 70 per cent. So, between September and December, it is obvious the 30 per cent will be a walkover. “We have seen the fiscal part of the PIA and there are the 2005, 2006, 2007 bid rounds, which bonds were attached to the PSC blocks, but were not activated. They were based on work programmes. So, if you don’t do work programme, we will activate the bond for you to pay and the bond is handsome. We have budgeted it in our revenue.”
Auwalu pointed out that because some of the bid block owners did not want the clause used, they had started writing to the DPR to pay certain percentages of their signature bonuses, so that they would retain the assets and delay activation of the clause.