Nigeria’s cash-call debt to be paid off in five years , says Kachikwu

The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, says the discounted 5.1 billion dollars cash-call debt owed International Oil Companies will be paid off within five years.

Kachikwu said this in Abuja on Tuesday while speaking to newsmen after declaring open the National Council on Hydrocarbons.

Known as the Joint Venture Cash Call debt, the nation owed the IOCs $6.8bn but got a discount of $1.7bn leaving a debt of $5.1bn to be repaid.

According to the minister, the agreement states that the payment from incremental oil production will not affect Nigeria’s budget production benchmark of 2.2 million barrels per day.

He said, “The first concession obviously is the fact that the country got a discount of 1.7 billion dollars, and that is going to be paid over a period of five years.

He explained that the responsibilities of the newly-inaugurated council would be advisory.

He said the council would act as a fact and ideas gathering team where all stakeholders: military, traditional rulers and ordinary Nigerians would contribute to the policy-making processes of the region.

In a related development, the minister also inaugurated the newly-constituted Boards of the Petroleum Products Pricing Regulatory Authority, Petroleum Equalisation Fund (Management) Board, PEF, and the Petroleum Training Institute.

Speaking at the inauguration ceremony he said the boards were formed at a time when the global petroleum industry was witnessing a downturn in fortunes.

Kachikwu said the composition of the boards was made up of selected individuals versed in experience and knowledge to guide the three parastatals into harnessing their potentials and fulfilling the nation’s expectations.