“The entire federation is being shortchanged by those activities. Since 2010, there were no payments of Joint Venture Cash Call by the NNPC when the oil was $110 per barrel up to when the President took over in 2015.”
Browsing: Joint Venture cash calls
A broader breakdown revealed that total export crude Oil & Gas receipt for the period of November, 2016 to November, 2017 stood at $3.73 billion. Out of which the sum of $2.60 billion was transferred to JV Cash Call as first line charge and the balance of $0.85 billion was paid into Federation Account.
He said the Corporation had earlier taken steps to inform the Presidency, Office of the Accountant General of the Federation and the Central Bank of Nigeria on the existence of the said accounts prior to the creation of the Federal Government Asset Recovery Account.
The GMD directed the Chief Operating Officers (COOs) of the Corporation to start immediate implementation of the policy framework, adding that they could revert to Management, should there be any grey areas requiring further intervention.
The negotiation on behalf of the Federal Government of Nigeria which was led by Dr. Kachikwu resulted in a remarkable agreement by the IOCs who have agreed to be paid their accumulated arrears up to December 2015, payable over the period of about five years.
Under the new funding stream, the JVs would become incorporated and source for their own financing, freeing up the federal government from the budgetary obligations of coming up with the cash calls already put at $2.3 billion so far this year alone.
“The NNPC is today in transition for positive reform. A transition to autonomy, profitability and growth. This transition is not only inevitable but imperative in the light of current business realities and the onus on NNPC to deliver on its statutory mandate,” he noted.
07 December 2015, Abuja – The Federal Government, yesterday, disclosed that it would raise funds from international investors and the…
