There is a cloud of uncertainty surrounding
The federal government had in 2019 taken the step to recover as much as
The move was in line with the present administration's commitment to bolster revenue after a drop in the output and price of oil which is
LEADERSHIP learnt that government was compelled to demand the money after realising that the energy companies failed to comply with a 1993 contract-law requirement that the country receive a greater share of revenue when oil price exceeds
Subsequently, the attorney-general's office and the justice ministry presented the demand for payment through a document. Though it is not clear how the government intends to recover the money, it has said it wants to negotiate with the companies.
However, 18 months after the minister's letter, the stakeholders in the multibillion dollar oil deal on government side were engaged in buck passing when they were asked the status of the money, with none of them ready to provide clarity on the issue.
And when LEADERSHIP reached out to the oil majors, those who even agreed to speak on condition of anonymity decline making any comment because the matter was in court. Under the production-sharing contract law, companies including
LEADERSHIP recalls that when the law came into effect 26 years ago, crude was selling for
At the moment, oil companies take 80 per cent of the profit from these deep-offshore fields, while the government receives 20 per cent, according to the document.
Most of
It was also reported that representatives of the oil companies met justice minister Abubakar Malami on
According to Bloomberg report, Malami told them that while no hostility is intended toward investors, the government will ensure all the country's laws are respected.
Attempts by our correspondent to get information on the payment from
The NNPC would also not comment on it but referred LEADERSHIP to the
On its part, the DPR was not adequately responding.
However, the senior media advisor to the minister of state for petroleum resources, Garuba Deen, told LEADERSHIP that he would check with the minister and revert but at the time of this report, he has not responded.
On their part, some oil companies including
They also contend that because the companies weren't party to the 2018 case, they shouldn't be subject to the ruling.
"We do not agree with the legal basis for the claim that we owe outstanding revenues,"
The
The 1993 law required that its provisions be reviewed after 15 years and subsequently every five years. The attorney-general's office insists that the provision for a higher share of revenue doesn't require legislative action to take effect, according to the document.
"Instead, it imposes a duty on the oil companies and contracting parties, being NNPC, to by themselves review the sharing formula," the ministry said.
In separate interviews with our correspondent, chairman, Human and Environmental Development Agenda (HEDA), Mr
Rafsanjani also lamented weak regulatory system and seeming connivance between corrupt government officials and the operators.
"There is a clear absence of oversight by the industry regulator and lack of fiscal policy has also influenced flagrant abuse of processes. I don't see why
On his part, Suraju said that it is sad that after a thorough calculation of legitimate outstanding taxes, nobody is saying anything about it and the public is now worried about the size of the country's debt.
According to latest data from ActionAid Nigeria,
Rafsanjani noted that already social institutions are on the verge of collapse. He specifically said the country's health and education sector are clearly not well funded and other critical infrastructure not available to support the economy.
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