FG To Earn $2bn From New Cash Call Policy - Politics - Nairaland
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| FG To Earn $2bn From New Cash Call Policy by Ofunaofu: 4:50am On Dec 20, 2016 |
The federal government is expected to earn about $2 billion (about N61billion) from a new cash call policy that comes into effect in January 2017, while its oil production is set to increase to 2.5 million barrels per day in 2019. This is a fallout of the restructuring embarked upon by the Minister of State for Petroleum Resources, Ibe Kachikwu, which culminated in an agreement signed yesterday in Abuja on a new cash call exit policy with the international oil companies (IOCs). It signals the end of joint venture, JV, cash calls. Kachikwu explained that the agreement, which will bring clarity and stability to the management of the country’s main revenue source, has already received the approval of the Federal Executive Council, FEC. “It is part of new measures and strategies aimed at eliminating the burden of Joint Venture Cash Call arrears and securing future funding for the Upstream Petroleum Sector. These strategies which are fully supported by the National Economic Council, NEC, will lead to an increase in national production from the current 2.2mbpd to 2.5mbpd by 2019, as well as reduction in Unit Technical Costs from $27.96/barrel oil equivalent (boe) to $18/boe. “The net payments to the Federation Account is expected to double from about $7 billion to over $14 billion by 2020 and the immediate effect of the new cash call policy will increase net FGN Revenue per annum by about $2billion,” he said. He explained that based on historical records, the current cash call system has been structurally defective and has failed to address the perennial Joint Venture funding challenges being experienced in the industry where the federal government underfunding of the industry through JV Cash Calls stood at $9.125 billion by September 2016. The new arrangement, he said, will guarantee payments of statutory oil and gas royalties and taxes by NNPC and its JV partners as well as profit from its investments in the Joint Ventures. “At $42.5 per barrel Oil price which the 2017 budget is predicated on and $24 per barrel fiscal cost recovery proposed for 2017 in FGN Medium Term Expenditure Framework (MTEF) recently submitted to NASS, over $13 per barrel will accrue to government as royalties and taxes from Joint Venture oil and gas production apart from $2.8 per barrel estimated as Government share of profit, at 57 percent equity. “This will restore investors’ confidence and achieve accelerated production growth in the Joint Ventures. New governance processes will also be introduced. “As a result of the agreement, the IOCs which have agreed to be paid their accumulated arrears up to December 2015, payable over the period of about five years. Payments are expected to be made through incremental production from each JV.” http://www.vanguardngr.com/2016/12/fg-earn-2bn-new-cash-call-policy/ 1 Like
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| Re: FG To Earn $2bn From New Cash Call Policy by Achuwa1(m): 4:59am On Dec 20, 2016 |
This Buhari govt can lie!!!!!!! & even lachikwu has joined them in telling lies. Who are they deceiving tht they are producing 2.2mbpd.Nigeria produced 2.2mbpd only during Gej regime & it has been fluctuating since this govt came into power coz of their evil attrocities against the Niger delta,b4 if finally crashed presently to below 1mbpd. Story for the Gods. 7 Likes 1 Share |
| Re: FG To Earn $2bn From New Cash Call Policy by Achuwa1(m): 5:00am On Dec 20, 2016 |
lachukwu= kachukwu 2 Likes |
| Re: FG To Earn $2bn From New Cash Call Policy by Aufbauh(m): 5:04am On Dec 20, 2016 |
Wailers are truly controversial not knowing what they want,e.g those comments above mine. Imagine people crying of hunger in the land and when they got a positive news of an improvement they become sad calling it propaganda....una case no get cure. Smh! 24 Likes 1 Share |
| Re: FG To Earn $2bn From New Cash Call Policy by azimibraun: 5:32am On Dec 20, 2016 |
Achuwa1:Prove them otherwise Empirically.. present your facts. Am tired of people criticising everything thing this government says or do with empty talk. Just watch channels tv and 3 guest will come on sunrise daily and suggest 3 different things this government will do on just a single item. All 3 will give shallow and empty suggestions and all 3 will disagree with each others views. And each of them wants the government to adopt their shallow views. Sarcasm and playing to the gallery has taken over good conscience and reasoning in Nigeria. Very soon Nigerians will begin to protest against empty bashing of this government. Match them with facts and figures, prove to them with clear evidences that they are not delivering. Am tired of critics more than the government self.. 27 Likes 3 Shares |
| Re: FG To Earn $2bn From New Cash Call Policy by Atiku2019: 6:16am On Dec 20, 2016 |
Kachikwu the Super Minister... The Only Light in Buhari's Dark Cabinet.... Sail On Sir  8 Likes
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| Re: FG To Earn $2bn From New Cash Call Policy by chiscodedon(m): 7:57am On Dec 20, 2016 |
good to read
as I see cash call, I fear o weda them don finally impose tax on calls.lol 15 Likes 1 Share |
| Re: FG To Earn $2bn From New Cash Call Policy by Rahym001(m): 8:15am On Dec 20, 2016 |
how i wished we had somebody with the character of kachikwu incharge of the finance ministry, things wouldnt be this bad. I mean some body that has it upstairs 5 Likes |
| Re: FG To Earn $2bn From New Cash Call Policy by richidinho(m): 8:27am On Dec 20, 2016 |
 The only big fish in Buhari's cabinet 3 Likes |
| Re: FG To Earn $2bn From New Cash Call Policy by hamzia(m): 8:27am On Dec 20, 2016 |
[quote][/quote]  |
| Re: FG To Earn $2bn From New Cash Call Policy by ayodeji521: 8:27am On Dec 20, 2016 |
lagosssss.kai |
| Re: FG To Earn $2bn From New Cash Call Policy by blackaxe78: 8:27am On Dec 20, 2016 |
Great move A very strong feeling that this great country will be coming up to stand tall in 2017. Haters will be put to shame and its definite. Nigeria will bounce back past the imaginations of its enemies God bless The Federal Republic of Nigeria 8 Likes |
| Re: FG To Earn $2bn From New Cash Call Policy by RentALodge: 8:30am On Dec 20, 2016 |
Though I'm not too knowledgeable about the usual FG and IOCs productions deal and sharing percentage/formula with regard to Nigerian oil/gas. But according to the above released details normal current/previous agreements -- it does SEEMS that this junior oil minister (Ibe Kachikwu) got a GREAT and WINNING deal for the country with this above new JVs agreements. Seems the man is one bright fellow and a worthy/working minister for Mr. President and the for country especially. Unlike some of his current "ineffective, inept and dull" ministers THAT NEED to go asap. 3 Likes
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| Re: FG To Earn $2bn From New Cash Call Policy by adioolayi(m): 8:30am On Dec 20, 2016 |
Achuwa1: Appreciate the good work Mr Kachikwu is doing...or this development is not a good in one  3 Likes |
| Re: FG To Earn $2bn From New Cash Call Policy by sammyj: 8:31am On Dec 20, 2016 |
Ok |
| Re: FG To Earn $2bn From New Cash Call Policy by godunia(m): 8:31am On Dec 20, 2016 |
I want to see not hear. APC and talk, na glue and plastic 2 Likes |
| Re: FG To Earn $2bn From New Cash Call Policy by blackaxe78: 8:32am On Dec 20, 2016 |
Achuwa1: Did you read the article or just jumped into conclusion? You could be killed for such if you were in Pakistan around 1979 when false interpretation attracts a death penalty 6 Likes 1 Share |
| Re: FG To Earn $2bn From New Cash Call Policy by MAKABBEY(m): 8:32am On Dec 20, 2016 |
****************************** All is well***************************************** |
| Re: FG To Earn $2bn From New Cash Call Policy by omonnakoda: 8:32am On Dec 20, 2016 |
blackaxe78:Great do you have a clue what is going on? I doubt it . The government is in a business venture with the oil majors and are required every year to contribute to the business.Every year they fail to do so and the oil majors "borrow" the money in very opaque circumstances. If now we are being told the government no longer has to contribute then one must ask; How is this possible,where will the money come from and at what cost ,on what terms? We are not told at all and you are here parroting "great move" .What is great about it? 5 Likes |
| Re: FG To Earn $2bn From New Cash Call Policy by BuyGoats: 8:37am On Dec 20, 2016 |
Earning earning yet suffering is on the rise. Please check my signature for your Christmas goats. Thanks for your patronage so far. 1 Like 1 Share |
| Re: FG To Earn $2bn From New Cash Call Policy by 9ise(m): 8:40am On Dec 20, 2016 |
A square peg in a square hole - Dr. Emmanuel Ibe Kachikwu is a distinction graduate of Law from the University of Nigeria, Nsukkaand Nigerian Law School. He bagged a first class degree in Law and was the best graduand and multiple awards winner from both Institutions. He thereafter obtained a Masters and Doctorate Degree in Law from Harvard University, with distinctions. 3 Likes |
| Re: FG To Earn $2bn From New Cash Call Policy by ElectronicsGuy(m): 8:41am On Dec 20, 2016 |
b |
| Re: FG To Earn $2bn From New Cash Call Policy by 9japrof(m): 8:44am On Dec 20, 2016 |
azimibraun:shut up my friend and face your lane, did the senators especially this kogi senator, what is that his name sef, not present buhari with facts of the enormous corruption going on under his nose, what has he done about it ? Did sahara reporters not present buhari and his band of nonchalant deceivers the corruption perpertrated by the COAS, what did he do about it ? Buhari is almost two years into his government, just name on tangible thing he has done, just one , only one ? and we know the nigerian system, from the third year, every other thing would be campaign and re-election games that would be played 2 Likes |
| Re: FG To Earn $2bn From New Cash Call Policy by jazinogold(m): 8:45am On Dec 20, 2016 |
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| Re: FG To Earn $2bn From New Cash Call Policy by Horlufemi(m): 8:48am On Dec 20, 2016 |
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| Re: FG To Earn $2bn From New Cash Call Policy by Stalwert: 8:51am On Dec 20, 2016 |
Aufbauh: It is called wailing |
| Re: FG To Earn $2bn From New Cash Call Policy by truthspeaks: 8:56am On Dec 20, 2016 |
Ok |
| Re: FG To Earn $2bn From New Cash Call Policy by ayindejimmy(m): 8:58am On Dec 20, 2016 |
azimibraun: Wetin concern Wailers with constructive criticism? They're been paid for a job and you expect them to be rational?! 1 Like |
| Re: FG To Earn $2bn From New Cash Call Policy by Gaskia: 9:01am On Dec 20, 2016 |
Government may eventually lose more in future without strong systemic control. The arrangement from January 2017 means that govt stops making cash contributions for the running of the JVs. However they will have to pay through crude. So we gain from reserving our money but lose from revenue decline because the E & Ps retain crude equivalent to govt's portion of the JVs responsibility. Again we could eventually lose more from a non transparent borrowing procedure by the E & Ps or production monitoring. |
| Re: FG To Earn $2bn From New Cash Call Policy by yedidiah(m): 9:17am On Dec 20, 2016 |
I hope.I can say Amen to this news |
| Re: FG To Earn $2bn From New Cash Call Policy by Nobody: 9:32am On Dec 20, 2016 |
Achuwa1:will you blame him he has to feel among , every one els in the govt lies, just the other day Emelife said ebonyi rice was 8,000. even stone filled rice is selling for 16,000 ..na lie lie paddy paddy clique of nonsense people |
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