PETROLEUM EQUALISATION FUND (MANAGEMENT BOARD, ETC.) ACT

There is hereby established a Fund to be known as the Petroleum Equalisation Fund (hereafter in this Act referred to as "the Fund") into which shall be paid-
(a) any net surplus revenue recovered from oil marketing companies pursuant to this Act; and
(b) such sums as may be provided for that purpose by the Federal Government.

The Fund shall be utilised for the reimbursement of oil marketing companies for any loss sustained by them solely and exclusively as a result of the sale by them of petroleum products at uniform prices throughout the country being prices fixed by the Minister pursuant to section 6(1) of the Petroleum Act.

(1) There shall be, for the purpose of administering the Fund in accordance with the provisions of this Act, a body to be known as the Petroleum Equalisation Fund Management Board (hereafter in this Act referred to as "the Board").
(2) The Board shall be a body corporate with perpetual succession and a common seal.
(3) The Board may-
(a) sue and be sued in its corporate name;
(b) hold and acquire property whether movable or immovable.
(4) The provisions of the Schedule to this Act shall have effect with respect to the composition of the Board and the other matters contained therein.

(1) The Board shall, from time to time, appoint a fit person to be called the secretary of the Petroleum Equalisation Fund Management Board.
(2) The secretary shall be the chief administrative officer of the Board and, subject to the directions of the Board, shall be responsible for-
(a) for determining at such intervals as the Board may direct, the net surplus revenue recoverable from any oil marketing company and accruing to that company from the sale by it of petroleum products at such uniform prices as may be fixed by the Minister pursuant to section 6(1) of the Petroleum Act;
(b) for determining the amount of reimbursement due to any oil marketing company which has suffered a loss as a result of the operation of the enactment as aforesaid;
(c) for the payment of all disbursements authorised under or by virtue of this Act;
(d) for accounting for all moneys collected, paid or otherwise expended under this Act;
(e) for carrying out such other duties as may, from time to time, be specified by the Board.
(3) The Board may also, from time to time, appoint as employees of the Board such number of persons as may be necessary for the administration of this Act, who shall be subject to the general control of the secretary and who shall perform such duties as the secretary may direct.

The net surplus revenue recoverable from an oil marketing company under this Act shall be calculated by reference to the volume of the affected products sold on zonal basis and to the amount by which the uniform prices at which the products were sold exceeded, or were less than, the prices of those products prevailing immediately before the fixing of the uniform prices of the products.

(1) The Board shall, from time to time, by notice served by registered post on the oil marketing company concerned, specify the date on which any net surplus revenue due from that oil marketing company shall be paid to the Board.
(2) If any sum is not paid within twenty-one days of the specified date, a sum equal to ten per centum of the amount unpaid shall be added for each month or part of a month after the date on which payment should have been made.
(3) The Board may, if it thinks fit, remit in whole or in part any penalty imposed under this section.

(1) The Board shall keep proper accounts and proper records in relation thereto and shall prepare in respect of each financial year a statement of accounts in such form as the Minister may direct.
(2) The Board shall not later than six months from the end of the financial year to which the accounts relate cause the accounts to be audited by auditors appointed by the Board, with the approval of the Minister.
(3) The auditors shall on the completion of the audit of the accounts of each financial year prepare and submit to the Board a report setting out their observations and recommendations on all aspects of the accounts of the Board; and the Board shall forward a copy of the report to the Minister.

(1) Notwithstanding any other provision of this Act, any net surplus revenue payable by an oil marketing company pursuant to this Act shall be recoverable by action as a debt owing to the Board at any time within six years from the date when payment of the sum became due.
(2) Any action for the recovery of any sum under this section may be instituted on behalf of the Board by the secretary or by any employee of the Board and where the action is instituted in a magistrate's court any person authorised by this subsection may appear and conduct the case.
(3) For the purposes of this section, the expression "net surplus revenue" includes any penalty payable or imposed for non-payment or for late payment, as the case may be.

A copy of an entry in the accounts of the Board or other extract from the records of the Board shall, when certified by the Secretary, be received in all courts as prima facie evidence of the truth of the contents thereof and, as the case may be, of the debt to the Board of any oil marketing company.

The Secretary may, with the approval of the Board, require any oil marketing company to furnish such returns and keep such records and produce them for examination by, or on behalf of, the Secretary as appear to the Secretary to be necessary for the carrying out of his functions under this Act.

(1) Any person who fails to comply with any requirement made by the secretary under section 10 of this Act, shall be guilty of an offence and liable on conviction to a fine of N50,000.
(2) Any person who-
(a) knowingly or recklessly furnishes in pursuance of any requirement made under section 10 of this Act, any return or other information which is false in any material particular; or
(b) wilfully makes a false entry in any record required to be produced under that section with intent to deceive, or makes use of any such entry which he knows to be false, shall be guilty of an offence and liable on conviction to a fine of N50,000 or to imprisonment for a term of five years.
(3) Where an offence under this Act committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate (or any person purporting to act in any such capacity) he as well as the body corporate, shall be deemed to be guilty of the offence and may be proceeded against and punished accordingly.

The Minister may, with the approval of the National Council of Ministers, make regulations generally for the purposes of this Act.

In this Act, unless the context otherwise requires-
"Board" means the Petroleum Equalisation Fund Management Board established by section 3 of this Act;
"Chairman" means the Chairman of the Board;
"Fund" means the Petroleum Equalisation Fund established by section 1 of this Act;
"Minister" means the Minister of Petroleum Resources;
"petroleum products" includes motor spirits, gas oil, diesel oil, automotive gas oil, fuel oil, aviation fuel, kerosene, liquefied petroleum gases and any lubricating oil or grease or other lubricant;
"Secretary" means the secretary of the Board appointed pursuant to section 4 of this Act.

This Act may be cited as the Petroleum Equalisation Fund (Management Board, etc.) Act.