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Nigeria losing $14.2bn from JV oil contracts- RMAFC

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Revenue Mobilisation and Fiscal Allocation Commission, RMAFC, has expressed worry over the fact that Nigeria is currently not benefitting from existing Joint Venture Contracts, JVCs.

Speaking in Abuja at National Policy and Development, NPOD Summit 2019, Chairman RMAFC, Mr. Shettima Abba-Gana disclosed that the country is loosing close to $14.235 billion annually in revenue according to JVs oil Nigeria records.

He also noted that the federation earns between 55 per cent and 60 per cent share of all JVCs operated by NNPC, while companies under Production Sharing Contracts contribute between 15 per cent and 20 per cent to the Federation Account.

He also noted that the federation earns between 55 per cent and 60 per cent share of all JVCs operated by NNPC, while companies under Production Sharing Contracts contribute between 15 per cent and 20 per cent to the Federation Account.

 According to him, the federation has not benefited significantly from the respective JVCs due to continuous decline in crude oil production, arising from pipeline vandalism, asset integrity issues and general low investment in JV crude production over time.

 He said:  “Currently, JV crude oil production dropped from 1.8 million barrels per day to between 700,000 and 900,000 bpd leading to loss of revenue of about $14.235 billion annually.”

Abba-Gana noted that PSC was introduced in 1993 and had not been reviewed ever since, explaining that the review was expected when oil prices reached $20 per barrel or 15 years of production, which was 2008, whichever came first.

Source Vanguard
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