Overview

The Petroleum Equalisation Fund (Management Board, etc.) Act 1975 establishes the Petroleum Equalisation Fund (the Fund) and the Petroleum Equalisation Fund Management Board (the Board) to administer the Fund. The Fund is financed by net surplus revenue recovered from oil marketing companies and sums provided by the Federal Government. It is used to reimburse oil marketing companies for losses incurred from selling petroleum products at uniform prices fixed by the Minister under the Petroleum Act throughout Nigeria. The Board is a corporate body with perpetual succession, capable of suing and being sued, and holding property. The Secretary, appointed by the Board, serves as chief administrative officer, responsible for determining net surplus revenue recoverable from oil marketing companies, calculating reimbursement due to loss-making companies, managing disbursements, accounting for funds, and other duties. The Act covers the calculation of surplus revenue (excess of revenue over costs at uniform prices), prescribed payment dates with penalties for late payment, accounts and audit requirements, legal proceedings to recover unpaid surplus, evidentiary certificates, returns obligations, offences and penalties, and regulation-making powers. The Schedule specifies the composition and proceedings of the Board. The Act came into operation on 15th October 1975.

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