Settle US62.1b indebtedness, Malami tasks oil companies

Abubakar Malami, Attorney-General of the Federation and Minister of Justice, has asked the International Oil Companies to settle their arrears of indebtedness to the federal government approximated to sixty-two billion,one hundred and ninety million, six hundred and seventy-nine thousand, seven hundred and ninety three dollars.

The Minister observed that since the signing of Deep Offshore and Inland Basin Production Sharing Contracts Act CAP D3 Law of the Federation of Nigeria 2004 (as amended) 2019, for oil exploration in deep offshore and inland basin, the Federal Government was yet to receive in arrears her shares of the oil revenue which the international companies failed to pay, amounting to estimated $62. 19 billion.

Dr. Umar Jibrilu Gwandu, Special Assistant on Media and Public Relations Office of the minister, in a statement said the Minister was responding media inquiries.

According to the Malami, “the comparative basis is not the Lagos budget as the considerable parameter, but the amount due for the recovery which in the circumstance is approximately $62, 190, 679,793.00 as at December 2018”.

The Attorney-General of the Federation argued that “when you convert $62, 190,679, 793 billon dollars into naira it will give you an amount more than 20 trillion naira. By virtue of Section 162 of the Constitution of the Federal Republic of Nigeria 1999 as amended, the
amount in question is more than enough for three year budget of the most populated African country; Federal Republic of Nigeria, considering the 2020 budget of 10.3 trillion naira”.

Malami said that it was not about the composition and who the recovery agents are, but the funds belonging to the Nigerian masses which must be recovered for the government to carry out more development projects.

“Above all, volume of the fees payable to the recovery agents which in all cases is contingent upon recovery, has never been a subject of executive contention in this matter.

“It does not accord with reason and logic for the Federal Government of Nigeria to overlook, forgo and condone loss of $64bn on account of meager 5% fee payable upon recovery”, the Minister said.

Following the approval for Trobell International (Nig) Ltd to undertake the task on April 12th 2018, the company engaged the services of lawyers, engineers, financial experts and petroleum experts nominated by the three state governments.