As part of the effort to eliminate the laborious cash call regime which has stunted the growth of the oil and gas industry, the National Economic Council (NEC), presided over by Nigeria’s Vice President, Professor Yemi Osinbajo, has endorsed an alternative funding regime for the industry.

The alternative funding stream had been approved earlier this week at the Federal Executive Council meeting and then presented to NEC, as the body mandated to come up with “measures necessary for the coordination of the economic planning efforts of the various governments of the federation”.

According to the Minister of State for Petroleum, Ibe Kachikwu, who briefed State House Correspondents after the meeting, “the current upstream joint venture arrangement in Nigeria’s oil and gas industry is unincorporated, meaning that NNPC and the International Oil Companies (IOC’s) partner in each joint venture as unique and separate.”

Kachikwu explained that from January to November 2016, under-funding of the NNPC cash calls was estimated at USD $2.3 billion. This is in addition to the inherited arrears estimated at USD $6.8 billion for 2015 year ending.

Other highlights of the meeting included how to energize the MSME’s as a major economic growth driver in the country. NEC observed that there are over 37 million MSME’s in Nigeria, contributing over 84% of the job opportunities in the country, with Lagos as the highest contributor.

Minister of Finance, Mrs Kemi Adeosun also reported to the council that as at November 2016, the balance of excess crude proceeds stands at $2, 455,790,144- which is about $2.4 billion.