The Presidency has responded to inquiries on the operations of the joint venture cash calls in the oil industry, stating that the reversal of the payment model followed due process.
Vice President Yemi Osinbajo’s spokesman, Mr Laolu Akande, gave the explanation on his twitter handle on Thursday.
According to Akande, the Vice President approved a new payment model, replacing the cash call system when he was the acting President.
“In response to media enquiries on NNPC joint venture financing, VP Osinbajo as acting President, approved recommendations after due diligence and adherence to established procedure.
“Action (is) necessary to deal with huge backlog of unpaid cash calls which Buhari administration inherited and also to incentivise much needed fresh investments in the oil and gas sector,’’ he twitted.
The National Economic Council (NEC) had identified the hiccups inherent in the joint venture cash calls which prompted oil majors jittery in oil and gas exploration.
The old model slowed down investments in the oil and gas industry but the reversal boosted investments in the sector and contributed much to the more than 2.2 million barrels per day production at present.