FG spent N1.83tn on JV assets in 2018 –NNPC

Cash call payment for the development of joint venture oil and gas assets ate into the Federal Government’s revenue last year as a total of N1.829tn was paid, according to the Nigerian National Petroleum Corporation, which represents the government in the JVs. The government generated N3.11tn from the sale of crude oil and gas in 2018, out of which N1.829tn was transferred into the joint venture cash call account while the balance of N1.28tn went into the Federation Account, the NNPC data revealed. The dollar allocation to the JV cash call account was $4.17bn (from oil and gas export receipt of $5.58bn) while the naira portion was N559.81bn (from domestic oil and gas sales proceed of N1.41tn). The federation crude oil and gas lifting are classified into equity export and domestic, both of which are lifted and marketed by the NNPC and the proceeds remitted into the Federation Account. The equity export receipts, after adjusting for JV cash calls, are paid directly into Federation Account domiciled in the Central Bank of Nigeria. Domestic crude oil of 445,000 is allocated for refining to meet domestic products supply. Payments are effected to the Federation Account by the NNPC after removing crude and product losses, pipeline repairs and management cost incurred.