Library / B 843 Federal Republic of Nigeria Official Gazette No. 110
B 843 Federal Republic of Nigeria Official Gazette No. 110

Page 6 of 12
B  850
(e)  financial contribution shall be calculated and paid in USD, and for
production delivered for local refining, the financial contribution may be
paid in Naira at Central Bank of Nigeria investors and exporters window
exchange rate for the applicable invoice date.
6.—(1) Payment of the financial contribution by a licensee as set out in
the Schedule to these Regulations, shall be made in the following manner —
(a) existing licensee shall, on the coming into effect of these Regulations,
commence payment by contributing an amount equal to the fixed cost relating
to a licence in their operational area multiplied by the remaining days of
that year, and an annual financial contribution for any succeeding year that
a licence is in effect shall be paid on or before the 31st of March of every
year, and the contribution shall consist of the fixed contribution, the capital
expenditure and production or volume where applicable ;
(b)  prospective licensee shall pay an initial contribution prior to the
granting of a licence in the first year of a grant, and the initial financial
contribution shall consist solely of the fixed contribution provided for in
these Regulations multiplied by the remaining days in the year of the grant
of license ; and
(c)  an annual financial contribution for any succeeding year that a licence
is in effect shall be paid on or before the 31st of March of every year, and
the contribution shall consist of the fixed contribution, the capital expenditure
and production/volume where applicable :
Provided that in paragraphs (a)-(c), the capital expenditure and production
volume shall be determined based on the actual capital expenditures incurred
and average capacity for the previous year.
(2) The applicable financial contribution shall be paid prior to the
termination of a licence where the licence terminates prior to the 31st March
of the relevant year.
(3) Payment of contributions under this paragraph shall be based on
self-assessment by a licensee, whether demanded or not by the Authority.
(4)  A financial contribution paid by a licensee under these Regulations
shall not be credited to or offset against any liability due to the Authority from a
licensee, provided that where an over payment is made due to an error, such
overpayment shall be applied to offset future financial contributions to the Fund.
(5) Notwithstanding the provisions of subregulation(4), a financial
contribution paid by a licensee may be refunded, two years after the —
(a) surrender of its licence in accordance with the Act ; or
(b) satisfactory compliance with decommissioning and abandonment
obligations under the Act.
Payment of
the financial
contribution
Schedule