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FG Repays Five Oil Firms’ $3.7bn Debt, Owes $972m

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Latest updates on Nigeria’s cash call arrears repayment showed that the country had so far repaid a total of $3.72billion to five international oil companies, leaving an outstanding balance of $971.8million.
Data obtained from the country’s oil firm in Abuja, last Friday, indicated that the five IOCs include Shell Petroleum Development Company (SPDC), Mobil Producing Nigeria (MPN), Chevron Nigeria Limited (CNL), Total Exploration and Production Nigeria (TEPN), and Nigeria Agip Oil Company (NAOC).
It was also learnt that Nigeria’s total cash call arrears to the firms was initially $4.689billion before it was cut down to the current amount of $971.8million after various repayments by the Federal Government through its oil firm – Nigerian National Petroleum Company Limited (NNPC).
Cash calls are sent by joint venture operators to non-operating partners for payment in the light of anticipated future capital, operating expenditures or the need for additional capital contributions.
The Federal Government through NNPC had over the years piled up unpaid bills, referred to as cash calls, which it was obliged to pay the IOCs with which it had joint ventures for oil exploration and production.
Figures from NNPC showed that the national oil company had cleared its total negotiated debts with both MPN and CNL, which were put at $833.75million and $1.097billion, respectively.
The oil firm’s total negotiated debts with SPDC, TEPNG and NOAC were outlined as $1.37billion, $610.97million and $774.66million, respectively, out of which the total payments to date by NNPC to the three IOCs were $777.4million, $458.91million and $550.01million, respectively.
This leaves an outstanding balance of $595.1million to SPDC, $152.06million to TEPNG and $224.65million to NAOC.
Reacting to the development, industry analysts stated that the delay in the repayments of cash call arrears by Nigeria to IOCs had hindered oil and gas investment across the country.
They, however, commended the Federal Government and NNPC for the repayment of the debts, stressing that this would boost investor confidence in Nigeria.
The Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, explained that the delay in cash call repayments had been a drag on the growth of Nigeria’s oil sector.
He said, “I think we should commend the government and NNPC on this because I know that the cash call arrears are normally far more than what it is now. So, for them to have cleared them to the level that we are now talking about it being under $1billion is something to be commended.
“However, it is important to point out that this issue of cash call arrears has been a major bottleneck to the growth of our oil and gas sector, because each time that the private IOCs and other oil producers put their money down, most times the government is not able to put its own cash call in terms of the counterpart funding.
“And these things have a way of slowing down the growth of investments in the sector. So, the fact that this has been cleared significantly is something for which we must commend the government and NNPC. But the bigger reform is actually to get the government to exit completely and allow this sector to run as a purely private enterprise.”
In 2016, the national oil company signed the cash call repayment agreements with the five IOCs to defray the cash-call arrears within a period of five years after many years of its indebtedness to JV partners.
Also, the government through the Federal Ministry of Petroleum Resources negotiated a discount with the five IOCs in December, 2016.
The negotiations led to the reduction of the debt from about $5.1billionn to $4.68billion.
The Federal Government through the NNPC had since continued to reduce the debt payments in installments.

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Fubara Frowns At Slow Pace Of Ndele–Omofo–Egmini–Agba-Ndele Road Project  ….Says Contract May Be Reviewed

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Rivers State Governor, Sir Siminalayi Fubara, has expressed dissatisfaction over the slow progress of work on the 14.5-kilometer Ndele/Omofo/Egamini/Agba-Ndele Road project located off the East–West Road in Emohua Local Government Area.

Addressing newsmen during an inspection tour of the project on Tuesday, the Governor noted that the pace and quality of work being delivered by the contracting firm, Messrs Stream Co. & Equipment Limited, fell below acceptable standards.

He was accompanied on the tour by the Permanent Secretary, Ministry of Works, Dr. Austin Ezekiel-Hart, who briefed the Governor on the status of the project and adjoining infrastructure.

Governor Fubara, who appeared visibly unsatisfied with what he saw on the stretch of the road, said his administration would not condone mediocrity or allow public funds to be wasted on underperforming projects. He, therefore, hinted that a review of the contract may be imminent to ensure the delivery of quality infrastructure to the people.

“I can say here already that the contractor handling the road from the bridge to the East–West Road is not doing a good job. I’m not happy about it. When I get back, there will be a need to review that contract because I’m not impressed. They don’t have the capacity, and we need capacity because we must have value for whatever money we’re spending,” the Governor said.

The Governor, however, commended Setraco Nigeria Limited for the standard and pace of work on the 240-meter Agba-Ndele/Abua Bridge, which forms a major component of the project. He explained that the bridge, which his administration inherited, would significantly improve connectivity among communities in the area once completed.

Governor Fubara stated that the bridge will serve as a key link between communities in Abua/Odual, Ahoada-East, and Emohua Local Government Areas, reducing travel time and providing an alternative route to the East–West Road.

He emphasised that the project demonstrates his administration’s commitment to rural connectivity and inter-community access, which are central to his development vision for Rivers State.

“Where we are standing on is a bridge connecting Abua/Odual, Ahoada-East, and Emohua Local Government Areas. The community that is connected to this bridge is Agba-Ndele.

“Instead of running through the East–West Road to Ahoada-East and heading into Port Harcourt or out of it, this bridge provides easy access for the Abua/Odual people to cross into Emohua, Agba-Ndele, and access the East–West Road in minutes,” he explained.

Governor Fubara also expressed optimism that the bridge would be ready for use in early 2026, noting that Setraco’s expertise and performance met his administration’s expectations for quality and delivery timelines.

He highlighted that projects of such importance should be handled by firms with the capacity to meet government standards.

The Governor further remarked that once completed, the bridge would serve as a crucial economic corridor for farmers and traders, especially those involved in agriculture and cultivation of local produce across the beneficiary local government areas.

He maintained that his administration is determined to deliver people-oriented projects that promote connectivity, strengthen commerce, and enhance livelihoods across the State.

“I’m really impressed with what I’ve seen on the bridge. I’m very sure that before the end of January, it might be completely ready for us to walk through and even drive across,” Governor Fubara said.

Reaffirming his vision for Rivers people, the Governor noted that his development plan seeks to integrate all parts of the State through strategic infrastructure investments that promote mobility, social cohesion, and economic growth.

He explained that his government is executing projects across multiple local government areas to ensure balanced development and inclusivity.

Governor Fubara stated that the administration will soon address the deplorable state of the Abua/Ahoada Road, which he said, will be included in the 2026 state budget.

“Our vision is to connect the entire Rivers State together, especially communities that have challenges of access. The bridge here connects Abua/Odual and Ahoada-East to Emohua and Port Harcourt. It will ease movement, promote trade, and boost our economy because agriculture is strong on this side. Moving goods to the city won’t be a problem anymore,” he said.

Governor Fubara reiterated his administration’s commitment to delivering quality infrastructure that provides value for public funds and meets the aspirations of Rivers people.

 

 

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Fubara Pledges Cleaner Gateway To PH City …Visits New Dumpsite At Igwuruta

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Rivers State Governor, Sir Siminalayi Fubara, has unveiled plans to permanently relocate the dumpsite along the busy Port Harcourt Airport–Obiri-Ikwerre Road, describing the current location as both a public health threat and a damaging first impression for visitors arriving in Port Harcourt, the State capital.

The Governor made this known on Tuesday during an inspection of a proposed replacement site, which is a disused burrow pit near Bambo Estate, off Eneka Road in Igwuruta, Ikwerre Local Government Area.

The location is being assessed as a potential permanent dumpsite for the State.

Governor Fubara, who was conducted by the Board  Chairman, Rivers State Waste Management Agency (RIWAMA), Dr Samuel Nwanosike, and its Managing Director, Dr Ibimina Wokoma, expressed concern about the environmental and health challenges posed by the existing site, which sits along a major entry point into the State.

“The kind of environmental hazards that we are facing there along the Airport–Obiri- Ikwerre Road; the smell on that road being the entrance into the State, we felt it’s not proper,” he said. “So, we are making alternative arrangements so we can have a permanent refuse dumpsite that meets acceptable standards.

“He added that the government would move swiftly to formalise ownership of the land and complete construction work on the access road to make the new site functional.“We have not concluded the issue of the burrow pit, but the access road, I think the government is doing something about it.

So, I will make sure that everything that needs to be done to ensure government owns this burrow pit is done,” he stated.

Governor Fubara also commended the Rivers State Waste Management Agency (RIWAMA) for what he described as a more assertive and improved approach to managing refuse across the State.In addition to the dumpsite inspection, the Governor also visited the Permanent Secretaries’ Quarters located in Elimgbu Town, Obio/Akpor Local Government Area, to assess the extent of ongoing construction work on the facility.

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Fubara Tasks New SSG On Honour, Service, Protection Of Rivers Interest 

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Rivers State Governor, Sir Siminalayi Fubara, has charged the newly appointed Secretary to the State Government (SSG), Barrister Benibo Anabraba, to uphold the dignity of his office, protect the interest of the State, and discharge his duties with honour, respect, and responsibility.

 

Governor Fubara gave the charge during the swearing-in ceremony of the new SSG, held on Monday at the Executive Council Chambers of Government House, Port Harcourt.

 

Describing Anabraba’s appointment as an act of divine favour, the Governor said positions of leadership are not attained by our own human effort but by God’s grace in our lives.

 

“Let me first congratulate you. I’m using the word ‘congratulations’ because a few of us, not by our power but by the special favour of God, find ourselves in exalted positions. It’s not because we are the best, but only by His grace.”

 

Governor Fubara noted that the Office of the Secretary to the State Government is one of great honour, occupied by only a few since the creation of Rivers State, and urged the new appointee to serve with humility and dedication.

 

He, however, expressed confidence in Anabraba’s capacity to deliver, citing his past record as a principal officer of the Rivers State House of Assembly.

 

“This position is a rare privilege. Guard that office with honour. Discharge your duties with respect. Protect the interest of Rivers State. When you leave office, let it be with honour, and that only comes through responsible service.

 

“I know you’re a dedicated person. This opportunity is not for show or display of power. It’s a call to duty,” he cautioned.

 

The Governor emphasised that the current administration is focused on restoring confidence of the people because peace has been achieved in the State.

 

He enjoined the new SSG to align with the vision of the administration and contribute meaningfully to the collective progress of Rivers people.

 

“We are emerging from a very difficult period and must reassure our people that we mean well for them, especially now that peace has returned to Rivers State. By the grace of God, do your work well. Help us succeed in this assignment that God has given to us,” the Governor added.

 

 

 

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