Fed Govt launches battle to recover N20tr oil cash

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Six oil firms have defaulted in the payment of approximately $62,190,679,793.00 billion (N20trillion) arrears of revenue to the government based on the deep offshore production sharing contracts.

The government is threatening to release the list of the affected oil giants.

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The Presidency is pushing for the recovery of the cash, despite recourse to blackmail, it was learnt yesterday.

Fresh documents also revealed yesterday that the oil firms have defaulted in payment since 2003.

The oil companies have not paid arrears due to the government 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 basins.

It was also learnt that a matter instituted by the Attorneys-General of three oil-producing States of Rivers, Bayelsa and Akwa Ibom (as Plaintiffs) against the Federal Government   added to the uncovering of the arrears.

In October 2018, the Supreme Court gave a ruling  with orders that the Attorney-General of the Federation and Minister of Justice  should establish a body, which will be the vehicle for the recovery of arrears due to the government from the Production Sharing Contracts.

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A top government official, who spoke in confidence, reaffirmed the determination to recover the N20trillion.

The source said: “There are six oil companies involved. They have taken the nation for granted in the last 16 years by denying Nigeria of its revenue from the Production Sharing Contracts.

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