Debts/Liabilities inherited by Buhari Admin in 2015:
Pension/Salary Arrears: N740bn
Oil Subsidy Debt: N350bn
Paris Club Overdeductions: $5.4bn
JV CashCall Arrears: $6.8bn
Contractor Debt/EEG Debt: N1.9 Trn
Refunds to States for Roads: N488bn
Total: 7 TRILLION Naira
#Thread
Pension/Salary Arrears: N740bn
Oil Subsidy Debt: N350bn
Paris Club Overdeductions: $5.4bn
JV CashCall Arrears: $6.8bn
Contractor Debt/EEG Debt: N1.9 Trn
Refunds to States for Roads: N488bn
Total: 7 TRILLION Naira
#Thread
You can’t understand where we are today without understanding where we’re coming from. At least 7 TRILLION Naira in unpaid debts/liabilities, accumulated between 1999-2015, inherited by Buhari Administration.
All now being paid/settled. Even amidst relatively-low oil prices.
All now being paid/settled. Even amidst relatively-low oil prices.
Look at Salaries/Pensions arrears. Examples abound: Nigerian Airways staff laid off 2003/4,unpaid until 2018. Delta Steel Co, Ex-Biafra Police Officers (pardoned since 2000)
See this thread from earlier this year by former Finance Minister @HMKemiAdeosun:
See this thread from earlier this year by former Finance Minister @HMKemiAdeosun:
Look at Paris Club Overdeductions. The monies in question date back to the period between 1995 and 2002. (FG over-deducted money from States for repayment of Paris Club debt)
In 2016 PMB directed that the claims of over-deduction be formally reconciled by the DMO.
In 2016 PMB directed that the claims of over-deduction be formally reconciled by the DMO.
The reconciliation started in November 2016. The first set of Refunds (50%) to State Governments were released between Dec 2016 & Sept 2017.
Balance of 50% - amounting to ~$2.7bn - has just been paid, in fulfillment of PMB’s Promise: google.com/amp/sunnewsonl…
Another Debt Paid.
Balance of 50% - amounting to ~$2.7bn - has just been paid, in fulfillment of PMB’s Promise: google.com/amp/sunnewsonl…
Another Debt Paid.
Note:
EEG is Export Expansion Grant
Road Refunds to States are for Federal Roads repaired by States in expectation of reimbursements by FG
JV Cash Calls are Joint Venture Cash Calls owed to International Oil Companies (IOCs) over the years
All entered Voicemail until PMB/PYO
EEG is Export Expansion Grant
Road Refunds to States are for Federal Roads repaired by States in expectation of reimbursements by FG
JV Cash Calls are Joint Venture Cash Calls owed to International Oil Companies (IOCs) over the years
All entered Voicemail until PMB/PYO
Take the example of the JV Cash Calls - the Nigerian Govt’s obligations relating to oil production (capital and operating) expenses. By 2015 unpaid JV arrears had ballooned to $6.8 billion. Govts before then just didn’t bother to pay, left the burden to the Oil Cos
In 2016 the Buhari Admin decided to deal with the matter. First negotiated the Arrears being owed the IOCs from $6.8bn to $5.1bn,producing a $1.7bn savings on the total sum.
Then agreed a payment plan for the $5.1bn, while also committing to ongoing payments of fresh obligations
Then agreed a payment plan for the $5.1bn, while also committing to ongoing payments of fresh obligations
Here’s what the Shell Country Head for Nigeria had to say a few months ago, about the #Change
“What is of significant today is that [the Cash Call] argument is off the table. For the first time, we finished a year without NNPC owing cash calls.”
vanguardngr.com/2018/07/jv-cas…
“What is of significant today is that [the Cash Call] argument is off the table. For the first time, we finished a year without NNPC owing cash calls.”
vanguardngr.com/2018/07/jv-cas…
“I have a current CFO in Shell who was here five years ago and just returned, he says he cannot believe what is happening. Essentially what he spent his time here was chasing cash calls from NNPC, today, he doesn’t have to do that.“— Shell Nigeria Head google.com/amp/s/www.vang…
