- FG Spends Over 50% of Oil Revenue on JV Assets
A large chunk of the total revenue generated by the federal government from oil and gas in 2018 was spent on joint venture assets.
The Nigerian National Petroleum Corporation, which represents the government in the joint ventures, said a total of N1.829 trillion was spent on joint venture cash call.
The federal government generated N3.11 trillion from the sales of crude oil and gas in 2018, out of which N1.829 trillion was transferred into the joint venture cash call account, while the balance of N1.28 trillion was deposited into the Federation Account, the NNPC report showed.
The dollar allocation to the JV cash call account was $4.17bn (from oil and gas export receipt of $5.58bn) while the naira portion was N559.81bn (from domestic oil and gas sales proceed of N1.41tn).
The NNPC owns 55 per cent of the JVs with Shell, and 60 per cent of all the others.