Report has it that Nigeria has repaid a total of $3.72 billion to five international oil companies, IOC, with an outstanding balance of $971.8 million. The five international oil companies include Shell Petroleum Development Company, Mobil Producing Nigeria, Chevron NIgeria Limited, Total Exploration and Production Nigeria and Nigeria Agip Oil Company. The cash call arrears was initially $4.689 billion before it was reduced to the current amount after various repayments through the nation’s oil firm, Nigeria National Petroleum Company Limited, NNPC.
According to a report obtained on Friday, the Federal Government through NNPC over the years, piled up unpaid bills, known as cash calls which it was to pay the IOC for oil exploration and production.
According to industry analysts, the delay in the repayments of cash call arrears by Nigeria to IOCs had negatively affected oil and gas investment across the country.
Commending the government for repaying the debts as it would boost investor confidence in Nigeria, the Chief Executive Officer, Center for the Promotion of Private Enterprise, Dr Muda Yusuf said that the bigger reform is to get the government to exit completely and allow the sector to run as a purely private enterprise.
