By Modupe Gbadeyanka
National Economic Council (NEC) has aborted the onerous cash call regime for the oil and gas industry in Nigeria.
It has now approved an alternative system of funding for the industry.
This decision was reached at the NEC meeting presided over by the Vice President, Professor Yemi Osinbajo, on Thursday in Abuja.
Minister of State for Petroleum, Mr Ibe Kachikwu, who briefed State House Correspondents after the meeting, explained that the new approved funding regime will eliminate the often arduous and onerous cash call regime, which has stalled growth in the industry.
According to him, “The current upstream joint venture arrangement in Nigeria’s oil and gas industry is unincorporated, meaning that NNPC and the International Oil Companies (IOC’s) partner in each joint venture as unique and separate.”
Mr Kachikwu said from January to November 2016 under-funding of the NNPC cash calls is estimated at $2.3 billion.
This is in addition to the inherited arrears estimated at $6.8 billion for 2015 year ending.
It would be recalled that the alternative funding stream had been approved earlier this week at the Federal Executive Council (FEC) meeting on Wednesday and then presented to NEC on Thursday as the body mandated to come up with measures necessary for the coordination of the economic planning efforts of the various governments of the federation.
more recommended stories
Naira Slightly Gains Against USD at I&E Window
By Adedapo Adesanya At the end.
One-Month Treasury Yield Falls to 8.99%
By Dipo Olowookere The secondary market.
Nigeria’s Eurobonds Debt Rises to $10.9bn from $1.5bn in 2015
By Adedapo Adesanya Nigeria’s external debt.
LCCI to CBN: Cash Reserve Ratio of 22.5% too High
By Adedapo Adesanya The Lagos Chamber.
Nigerian Stocks Regain Freedom After 7-Day Hostage, up 0.20%
By Dipo Olowookere After being in.
Africa Prudential Grows Net Profit to N1bn in Six Months
By Dipo Olowookere Leading share registration.
Cadbury Nigeria Bounces Back to Profitability, Posts N669.9m PAT
By Dipo Olowookere The appointment of.
Nigeria to Sell Fresh N145bn Bonds Next Wednesday
By Adedapo Adesanya The Federal Government.