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Nigeria cancels joint venture cash calls with oil companies

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The Nigerian government has finally announced the cancellation of joint cash call with oil companies operating in Nigeria.

The announcement came on a day the government said that it had also uncovered heinous acts of frauds in the revenue generating agencies.

Main reason for the cash call withdrawal was principally hinged on the paucity of funds arising from the drastic fall of crude oil prices in the international market which had made it almost impossible for Nigeria to meet its cash call obligations.

Cash calls is the counterpart funding which the Federal Government, represented by the Nigerian National Petroleum Corporation (NNPC) annually pays as its 60 percent equity shareholding in various oil and gas fields operated by international oil companies and indigenous oil firms.

The development however is expected to generate about $15 billion worth of investments.

Briefing State House correspondents at the end of National Economic Council meeting at the Presidential villa, Abuja on Thursday, the Minister of State for Petroleum Resources, Ibe Kachikwu alongside Governor Willie Obiano of Anambra State and his counterpart from Bauchi State, Mohammed Abubakar, said that Nigeria owed call arrears $6.8 billion over the 5 years.

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