Guardian / Nigeria: The Federal Government has announced the cancellation of joint cash call with oil companies operating in Nigeria.
The National Economic Council (NEC) meeting, which held yesterday, also directed the federal Ministry of Finance to halt deductions by agencies parastatals for payment of allowances and other expenses not approved by government.
Briefing State House correspondents at the end of the NEC meeting held at the Presidential Villa, Abuja, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, with Governors Willie Obiano of Anambra State and that of Bauchi State, Alhaji Mohammed Abubakar, explained that Nigeria owed call arrears of $6.8 billion for over the five years.
The main reason for the cash call withdrawal was hinged on paucity of funds arising from the sharp 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 Goernment, 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 is expected to generate about $15
Governor Obiano said NEC was briefed that generating agencies raise as much as N1.5 trillion yearly and spend almost 90 percent of it on recurrent expenditure in clear violation of due process and the constitution.
He said other abuses by them include payment of salaries above specifications by the RMAFC, converting official cars to personal ownership under 48 hours of purchase, inappropriate and arbitrary monetization of medical allowances, undue and excessive overseas travels, lavish training allowances and conference spending, excessive and personal loan approvals and unapproved mortgages, among others.
Some of the federal revenue generating agencies include the Federal Inland Revenue Service (FIRS), National Communications commission (NCC), National Pension Commission (PenCom), Nigerian Immigration Service (NIS) and the Nigerian Custom Service (NCS) and others.
Governor Obiano said the abuses by the agencies have been going on for a decade.
