Nigeria: Joint Venture Cash Calls' Indebtedness Rises to U.S.$6 Billion - Senate

The Senate yesterday decried the current cash call indebtedness of Nigeria National Petroleum Corporation, NNPC, Joint Venture, which has risen to well over $6 billion.

It also noted that the issue had become a huge problem staring the nation's economy in the face.

According to the Senate, investigation into the implementation of the Joint Venture Cash Calls Obligation by the Nigeria National Petroleum, NNPC, was stalled by the absence of chief executive officers of International Oil Companies, IOCs.

Speaking yesterday at the public hearing on the urgent need for effective implementation of the Joint Venture cash calls obligations by the NNPC, in accordance with the appropriate Act of the National Assembly, Senate President, Bukola Saraki, said the indebtedness was worrisome, especially at a period of disturbing and increased pipeline vandalism in the Niger Delta.

He described as unacceptable the $6 billion cash call indebtedness.

Saraki said: "At a period of disturbing and increased pipeline vandalism in the Niger Delta, the current cash call indebtedness standing at over $6 billion is a big problem staring at our economic health.

 The 2013, Nigeria Extractive Industry Transparency Initiative, NEITI, report submitted to the Senate on June 15, 2016, clearly shows that the huge sums of money that were not remitted to the federation account between 2005 and 2013 by the NNPC amounts to about $12.9 billion. That simply doubles the debt we have all sat here to investigate.

"Despite the fact that NNPC has a larger amount of the proceeds from the joint venture, it worries the Parliament to know that it has consistently been defaulting in payment of its own counterpart funding of projects.

"There is no doubt also that there is still lack of clarity in the current financial regimes, royalties and taxes in the oil and gas industry. The NNPC is expected to lead in public disclosures of financial dealings earned and its expended revenues.

"This is vivid with the confusing and conflicting figures reeled out during reconciliation process among the agencies responsible for the receipts of funds meant for the federation accounts."