Library / Federal Republic of Nigeria Official Gazette No. 42 Lagos - 5th March, 2024
Federal Republic of Nigeria Official Gazette No. 42 Lagos - 5th March, 2024

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1.—(1)  Where the provisions of Production Sharing Contracts (“PSC”)
or Joint Operating Agreements (“JOA”) provide financial value thresholds for
the prior consent of the NNPCL for the awards of contracts and procurement,
MOFI and MOPI are hereby directed to take steps to procure NNPCL to
amend the PSC or JOA to raise the contract approval thresholds to not less
than US$10,000,000 or the Naira equivalent determined at the NAFEX FMDQ
exchange rate or any other platform determined by the Central Bank of Nigeria
(“CBN”).
(2)  MOFI and MOPI shall ensure that this threshold will be reviewed
and adjusted in line with the rate of consumer inflation as disclosed by the
National Bureau of Statistics on a yearly basis.
2.—(1)  NNPCL and Nigerian Upstream Investment Management
Services Limited (“NUIMS”) shall, in collaboration with the NCDMB and
industry stakeholders, simplify the contract approval process and adopt a single
level of approval by NUIMS and NCDMB at each contract stage including
prequalification, technical, commercial and final approval stages.
(2)  The NNPCL and NUIMS shall ensure that all approvals or consents
required to be given by it for contracts and procurement for each contract
stage pursuant to the terms of PSCs or JOAs are issued within 15 days from
the date of submission of application by the relevant party to the PSC or JOA.
(3)  The NNPCL and NUIMS shall communicate its decision to the
applicant within the time-frame stipulated under subparagraph (2) of this
paragraph.
(4)  Where the NNPCL and NUIMS fails to communicate its decision
within the aforementioned timeline, the approval or consent shall be deemed
granted.
(5)  Where an applicant’s submission is deemed insufficient or inadequate,
NNPCL and NUIMS shall request additional information or clarification during
the initial review period.
(6)  The applicant is required to furnish such additional information or
clarification within seven days.
(7)  Following the submission, NNPCL and NUIMS are obligated to
respond to the applicant within the subsequent seven days and failure to do so
will result in the approval or consent being deemed granted.
(8)  The NCDMB shall review any Nigerian Content Plan (“NCP”)
submitted to it pursuant to section 7 of the Nigerian Oil and Gas Industry
Content Development Act within the 10 days stipulated in the Act.
Financial
approval
thresholds
Consent
timelines