Featured
FG Repays Five Oil Firms’ $3.7bn Debt, Owes $972m
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.
Rivers State Governor, Sir Siminalayi Fubara, has said that peace has prevailed because he draws strength from God to resist insults and tantrums thrown at him while frustrating attempts by some disgruntled persons who wanted to plunge the State into unending crisis.
The Governor also said that because he has anchored his Government on promoting peace, the enabling atmosphere has been provided for investments and sustainable development to flourish.
Governor Fubara made the assertion when he received a delegation of members of the Bishops and Gospel Ministers’ Association International Incorporated, Rivers State Chapter, at Government House in Port Harcourt, yesterday.
Represented by the Head of Rivers State Civil Service, Dr George Nwaeke, Governor Fubara said while most people took his meekness for weakness, his stance on peace has unarguably enhanced harmonious atmosphere of concord as residents sleep with their two eyes closed, and investors and shareholders are happy with the returns on investment.
He said, “Before, what they hear of Rivers State is that they are fighting, and some genuine investors will not come. Some people even ask you: How are you coping in Rivers State?
“But now”, he asserted: “The Governor has brought about a lot of changes in the State. One of the most important things is that he has changed the negative narrative. It is no longer Rivers of blood. It is now Rivers of peace.
“We are enjoying our lives here. Why? Because there is a change in the narrative. We have peace. The Governor is, as much as possible, absorbing any level of insult at him only for one purpose: that Rivers State may have peace; that we may grow; that this state will experience genuine development.”
Governor Fubara urged them, as members of the Christian family in the State, to continue to pray for the State and the Government so that the enemies of the State will be put to greater shame.
“This peace is what I want you to embrace. Go and continue to pray, because when the sower of the seed went and sowed, the enemy went in the night and sowed tares inside there. But the Governor is sowing peace.
“When I listened to the leader of the team, His Grace Eddy Ogbonda, he said you came all the way from Eleme Junction, and stopped at major junctions, and you uttered prayers for the peace of Rivers State.”
He also said: “I, hereby want to thank you for identifying with the Governor at a time like this. At a time when it looks as if someone wants the Governor’s peace posture misunderstood as weakness.
“When someone has the strength to fight back, but refuses to fight back. That is a bigger strength; that power of restrain does not just come, it can only come from God.
“You cannot give peace, if you do not have peace within you. The Governor is not interested in any form of trouble or violence. What he is interested in is known, and it is: let there be peace in Rivers State,” he said.
In his address, leader of the group, Archbishop Eddy Ogbonda, said they had observed a week-long intensive prayers that culminated into a peace rally, which brought them to Government House, and assured the Governor that God will continue to give him victory over his adversaries while preserving Rivers State.
“It is Rivers State Prophetic Prayer Convocation and Rally 2024 with the theme: ‘Peace be still’. Of a truth, everyone of us understands that we live in a time when we need peace much more than any other thing.
“Rivers State needs peace. Everyone as individuals need peace. The country needs peace, and the world at large needs peace. So, we are here to do a peace march. We pray that God will command His peace to reign in Rivers State,” he said.
The Economic and Financial Crimes Commission (EFCC) has stated that hotels, schools, and other establishments that accept payments in dollars from their customers are at risk of facing arrest.
The Chairman of EFCC, Ola Olukoyede, said this in the agency’s publication called EFCC Alert on Monday, adding that action would be taken against individuals involved in the dollarisation of the economy.
According to him, the exception is if foreigners come in to transact business and the only means of transacting is their credit card and dollar but to charge local customers in dollars or other foreign currencies would no longer be allowed.
He said charging local activities and customers in dollars is against Nigeria’s constitution.
The EFCC chairman said, “Schools that charge Nigerians in dollar, supermarkets that trade in dollar, estate developers that sell their property in dollar, hotels that are invoicing in dollar, we are coming after you and we have made arrests in that area.
“Yes, if foreigners are coming in and the only means of transacting is their credit card, and dollar, why not? You will get that.
“But document it properly as against selling things within the system, local economy and you will be using dollar as the medium of exchange, it is illegal.
“Our law does not allow for that. And we have also affected some arrests.”
Rivers State Governor, Sir Siminalayi Fubara, has enjoined Muslim faithful to remain steadfast to the lessons learnt during the holy month of Ramadan.
Governor Fubara stated this in his message of felicitations to Muslims as they celebrate the 2024 Eid-el-Fitr Sallah, which marks the end of the one-month Ramadan fasting.
The Governor emphasised the importance for Muslims to also uphold the tenets of Islam by exhibiting the fear of God and showing piety in their daily work.
Governor Fubara said, “We must all continue in the good attributes imbibed during the holy month of Ramadan as directed by God through His Prophet, so as to ensure peace, unity and harmony in the society for a better future.”
While praying that the essence of the festival offers them happiness, peace and prosperity in all aspects of life, Governor Fubara said he recognises and appreciates the critical role that the Muslim community continues to play in the development of Rivers State, and indeed, Nigeria at large.
Governor Fubara charged them to remain unwavering and steadfast in their commitment and positive contributions to advance the development of the State and the country.
“I enjoin you all in the State to remain calm, be patient and continue to do what is right,” the Governor added.
He wished the Muslim faithful in the State and across the country a happy Eid-el-Fitr celebration.
-
Maritime4 days agoFG Launches National Single Window Steering Committee
-
News4 days agoAgain, NCDMB Emerges Best Performing Agency
-
Retrospect4 days agoFubara Restates Commitment To Transparency In Governance
-
Niger Delta4 days agoNDDC Completes 25.7km Ogbia-Nembe Road Project
-
News4 days agoWe Operate Transparent Accounting System
-
Business4 days agoCustoms Backs Locally-Made Vehicles
-
News4 days agoFleeing Villagers Storm Zamfara Government HouseTo Seek Protection
-
News4 days agoEx-Senate President Donates School, Healthcare Centre To Yobe Govt