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Tag: Dr. Ibe Kachikwu

  • Scarcity: FG owes Nigerians apologies – Lawal

    Scarcity: FG owes Nigerians apologies – Lawal

    Global Affairs Analyst, Ayoola Lawal has vehemently frowned at the series of excuses from the President Buhari-led administration resulting in Fuel scarcity and other forms of hardship to Nigerians, especially during the Yuletide.
    Lawal made his grievances known in a telephone conversation with The Nation correspondent on Sunday, demanding that the Federal Government apologises to Nigerians for the hardship experienced during the Yuletide.
    According to him, this administration was elected by Nigerians because it came with promises they believed and not excuses.
    “When excuses and blame-shifting now become its mantra then it should accept that it has failed the masses based on its promises. This is not the time for Government to put up excuses. It is the season of celebration but sadly, most Nigerians could not celebrate like they planned due to fuel scarcity.
    “In a civilized society, the officers in charge should have resigned voluntarily and when they don’t, they should be suspended. To start with, President Buhari should consider stepping down as Petroleum minister so that Nigerians will know who to call for his or her suspension or resignation in such frustrating situation.
    “As it is, home and abroad, there exists a perception that Dr Ibe Kachikwu is on top of his game but unwarranted politics in the country`s oil sectors is the core cause of the untold hardship on good citizens of Nigeria.
    “When we stop or refuse to call our leaders to their shortcomings for one reason or the other at the expenses of the masses, that is a critical sign of trouble to come. Many Nigerians paid double for transportation during this festive season, especially those who must travel to their home towns for all annual celebrations.
    “Frankly speaking, the show put up by the Vice President Yemi Osinbajo on Xmas day does not rhyme with his pedigree. Nigerians know who is working and who is not. Instead of apologising to the masses, the Federal Government is talking about how fuel subsidy is not at N26. If that’s the case, they should talk about the global fall in fuel prices,” he observed.
    Lawal, therefore, urged the government to be sensitive to the plights of the people noting that life has been very fair to those in government at the expenses of the masses.
    “May this coming 2018 be a year of unprecedented progress and peace for Nigeria,” he said.
  • FG set to approve three modular refineries in Edo – Kachikwu

    FG set to approve three modular refineries in Edo – Kachikwu

    …As Alaghodaro Investment Summit kicks off Friday

    As business leaders storm Benin City, the Edo State capital, Friday, for the Alaghodaro Investment Summit, Minister of State Petroleum Resources, Dr. Ibe Kachikwu, on Thursday in Benin City said the Federal Government is already processing applications received for the establishment of seven modular refineries in the state.

    He said three of the applications have reached the approval stage.

    Kachikwu disclosed this during the Stakeholders’ Engagement and Enlightenment Campaign in Niger Delta states, organised by the Federal Ministry of Petroleum Resources in collaboration with the Edo State Government, held in Benin City.

    The event is part of a series of activities heralding the Alaghodaro Investment Summit, which kicks off at the Edo Hotel, Okada Avenue, Benin City, and will play host to the crème of the business community across the globe.

    Kachikwu said the Federal Government was working to bring development to the Niger Delta region through the Modular Refineries Initiative, Gas Flare Commercialisation programme and collaboration with oil-producing states, on the Amnesty programme.

    He said the establishment of modular refineries is driven by the private sector, adding that designs, analysis and engineering work for three of the refineries have been done.

    Minister of Niger Delta Affairs, Pastor Usani Uguru Usani, said the meeting was to sensitise the people on Federal Government’s on-going initiatives in the region after earlier visits to the region.

    Usani said the Federal Government was reviewing the Amnesty programme to capture those who were not included earlier in the scheme.

    Governor of Edo State, Mr Godwin Obaseki said the Niger Delta Development Commission (NDDC) has not lived up to its duties, noting that the commission has failed to sign a Memorandum of Understanding (MoU) with the state on the reconstruction of the Benin-Abraka Express Road. 

    The governor called for a yearly stakeholders’ meeting to revive development by the federal government in the state.

    “Oil is located in 33 communities in three local government areas in the state, which include, Ovia North East, Orionmwon and Ikpoba Okha. We want to organise the oil-producing LGAs into clusters and work with federal government to help us with the physical planning and gap analysis to evaluate progress of development in the councils,” Obaseki said.

    Kachikwu announced the constitution of a committee to identify development needs within the state, comprising representatives of the Federal Government, State Government, NDDC and security agencies, which will be headed by the Secretary to the Edo State Government, Osarodion Ogie Esq. 

    Also present at the stakeholders’ meeting were delegates from the three oil-producing local government areas in the state, who called for provisions of health care centres, modular refineries, good roads and the inclusion of their youths in the amnesty programme, among others. 

  • How social media forced NNPC, NASS to cancel dinner

    How social media forced NNPC, NASS to cancel dinner

    Public opinion and criticism on Tuesday compelled the members of the National Assembly to turn down the invitation to a dinner that the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru had extended to them.

    The “special dinner”, which was scheduled to hold at 7.00pm in Congress Hall of the Transcorp Hilton, Abuja, was eventually cancelled.

    The invitation card which however went viral on the social media as from mid-day yesterday provoked negative reactions raising questions about the propriety of the NNPC boss who is under investigation concerning the memo that the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu wrote to President Muhammadu Buhari. 

    A source in the National Assembly who pleaded anonymity yesterday said that “the Senate Committee on Petroleum (Upstream) had to reject the invitation because of  the negative reactions it was generating in the social media.”

    Our Abuja correspondent, who went to confirm from the venue at 6:00pm met the Congress Hall locked and without sign of preparation for any dinner.

    The Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, who confirmed the circulation of the invitation card, told The Nation that the aborted dinner was part of the ongoing stakeholders’ engagement that the corporation commenced since March this year.

    He noted that NNPC called off the dinner which coincided with Buhari’s the dinner for the National Assembly members .

    His words: “You know  we have been having stakeholders’ engagement since March. We invited you to Nicon Luxury, isn’t it ? We started in March with publishers in Abuja which was well attended. 

    “And it was to be followed by that of the National Assembly : House of Reps and Senate. And to be followed by correspondents in Abuja which was held in Nicon Luxury. But members of the National Assembly Petroleum Committee, both chambers said the were going on recess it wasn’t convenient for them. 

    “Which date was convenient, they said ok let’s put it in May. In May, GMD was bereaved, he lost three of his relatives. We moved it to Salah period, Salah period, they said they were going in recess. 

    “This time around, they chose October 31, (today). But unfortunately, the President will be engaging them to a dinner. So, they said they will be going to that of the President.   

    “So for somebody to wake to say it is for probe or no probe, only God knows that it would have been done since March.”

  • FG to focus on good refineries, gas commercialisation in 2018

    FG to focus on good refineries, gas commercialisation in 2018

    The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, on Monday said government would focus on making refineries work and commercialising gas in 2018.

    In a podcast released by Kachikwu in Abuja, he said government would also bring in the private sector to restructure dilapidated infrastructure.

    ”To the big picture of 2018 and early 2019, what are the key things we are going to focus on? First is the refineries. I have talked about this over again, it is important that we get these refineries working.

    ”We must exit importation in 2019 and we are happy Dangote is working very hard and bringing back the timeline for the completion of his refinery.

    If we can do that, we are going to be saving the country over 30 per cent of forex application on importing petroleum products.

    ”Gas flare commercialisation, we have launched it, it is taking off, we are continuing to deepen our conversation with oil companies to ensure that we exit gas flare in over gas flare sites.

    ”Infrastructure is key to us, our infrastructure is 30/40 years old, completely dilapidated, can’t be funded by the government anymore.

    “I am working with the NNPC and DPR to launch our infrastructure masterplan and bring people who can invest in them.

    ”There is the issue of crude tracking – how do we track every molecule of products we have, crude and refined products? We are putting together an IT platform that will enable us do this, we are working with DPR and hopefully by the 2019 the issues of whether we could not account for our crudes will no longer occur.

    ”We are planning our marginal fields’ rounds and we are also planning our inland basins rounds. It is going to be a transparent process to bring people to get us more oil.

    “The rules are going to be out soon once it is approved by His Excellency,” he said.

    Kachikwu said the he would like to see the sector hit 2.2 million barrels though subject to OPEC constraints and fixing the infrastructure was essential to this.

    He said the government being able to exit the joint venture cash call had reassured multinationals of their need to invest in the country and they had invested over $14-15 billion dollars, which were for purposes of projects like Zabazaba and Bonga extension.

    ”We delivered an open NNPC, a lot of work still needs to be done there.

    ”We are going to be rolling out our fiscal policies which are now awaiting FEC approval.

    “Those fiscal policies will expand income in the short term over $2 billion a year to the Federal Government but on a long term over $9 billion.

    ”On the back of that, we will be working with the assembly to transmit that into legislative provisions,” he said.

    The minister said he would be going back to the Niger Delta to meet governors of the region and oil companies, to put a ‘seed’ to some of the agreements on ground. (NAN)

  • NEMSA investigates cause of fire in Kachikwu’s house

    NEMSA investigates cause of fire in Kachikwu’s house

    The Managing Director, Nigerian Electricity Management Services Agency (NEMSA), Engr. Peter Ewesor, Tuesday said that the agency has commenced investigations into the cause of the fire outbreak in the Asokoro house of the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu.

    He spoke in Abuja during a press briefing on the focus of the agency owing to his reappointment.

    Asked whether he was aware of the fire incident, he urged former Acting MD, Engr. T.T. Aliyu to respond.

    Aliyu said that “we got the report on Monday and we have acted on it and commenced its investigation.”

    Continuing, Ewesor added that “it is something we are working on.” He stressed that only a preliminary report can be ready at the moment, although the agency prefers concluding thorough investigation before issuing its report.

    He announced that the agency has secured a conviction of four accused persons at the chief magistrate court of Kaduna State for the Offences of criminal conspiracy, forgery of the NEMSA certificates and cheating.

    He said that the Offences are contrary to section 59, 345, 308 of the penal code of Kaduna State.

    The Chief Electrical Inspector of the Federation however vowed that the agency would “intensify its efforts in terms of enforcement of technical standards and regulations, technical inspection, testing and certification of all categories of electrical installations, electricity meters and instruments to ensure the efficient production and delivery of safe , reliable and sustainable power supply and guarantee safety of lives and property in the Nigerian Electricity Supply Industry (NESI ) and other allied industries/workplaces safety standards.”

    According to him, the agency is determined to empower its staff to discharge their responsibilities by ensuring a conducive environment for work, scale up on necessary work equipment and investing in human capital development.

    He added “importantly too, we are already expanding our services, getting closer to people by inaugurating new inspectorate field offices, such as the new Owerri Office, Bauchi and one coming up in Uyo.”

    Ewesor noted that the agency tested total of 64,222 out of which 63,942 passed and 280 failed.

    He said that NEMSA monitored and evaluated 2,699 existing networks and power systems, out of which 618 were resolved and 2,081 are outstanding.

    Continuing, the Managing Director noted that the agency inspected and tested 5,037 new power projects/electrical installations along power supply chain and utilization, out of which 4,138 were certified for use while 899 awaiting rectification of observed defects.

    The NEMSA boss said that the agency investigated 94 electrical accidents/ electrocutions.

  • NNPC $25b contract: Setting the records straight – Osinbajo

    NNPC $25b contract: Setting the records straight – Osinbajo

    Vice President Yemi Osinbajo yesterday maintained that the Nigerian National Petroleum Corporation (NNPC) did not award $25b contracts.

    In a letter to President Muhammadu Buhari, Minister of State for Petroleum Resources Ibe Kachikwu made the allegations, stressing that the contracts did not follow due process.

    A statement by his Senior Special Assistant, Laolu Akande,  titled: ”It is Important to set the records straight”, said: “Claims on social and traditional media that $25b worth of oil contracts were awarded by the NNPC or that $25b in NNPC funds is missing are both false.

    “No contracts were procured by the NNPC based on the leaked memo of the Petroleum Resources Minister of State, even though such impressions have been maliciously created in the past few weeks.”

    He said that a closer look at each of the said projects indicated clearly that “these are not procurement contracts”.

    He added “When I tweeted on Thursday morning last week, I had indicated that the Vice President, while acting as President approved Joint Venture Financing arrangements. But for some curious reasons, a few media reports used that tweet to report that I said the then Acting President approved N640 billion worth of oil contracts. Such reporting is both false and misleading and therefore ought to be completely ignored by all seekers of truth.”

    “What is more important is that when you look diligently at the referenced projects/transactions one by one, you will see, as NNPC has shown, that none of them was actually a procurement contract.”

    “Take both the Crude Term Contract and the Direct Sale, Direct Purchase (DSDP) agreements, for instance; these are not procurement contracts involving the expenditure of public funds. Both transactions are simply a shortlisting process, in which prospective off-takers of crude oil and suppliers of petroleum are selected under agreed terms, and in accordance with due process.

    “It is, therefore, wrong and misleading to refer to them as though they’re contracts involving the expenditure of NNPC funds, or public funds of any sort. As you now know, the Honorable Minister of Petroleum Resources himself has in fact clarified that he meant to focus on administrative and governance issues, not red-flag any fraud – because no fraud exists in this matter.”

    For both transactions, Akande said it was not true and also inaccurate to attach $10b and $5b values on them.

    “Attaching monetary values to these contracts is an arbitrary act that completely distorts understanding of the situation.” he said

    According to him, Nigerians ought to be informed clearly that “whenever there is a monetary value on any consignment of crude oil lifted in this country by any firm, the proceeds go directly to the Federation Account and not to any company. In fact, the Buhari administration in the implementation of the TSA has closed down multiple NNPC accounts in order to promote transparency and probity.”

    Akande also explained that even in compiling the shortlisting for the prospective off-takers of crude oil and suppliers of petroleum under agreed terms, “there were public placements of advert in the mass media seeking Expressions of Interest (EoI). Bids were publicly opened in the presence of NEITI, DPR, BPP, Civil Society groups and the press. In some cases even, these events were televised live.”

    “For the sake of emphasis, let me state clearly that both the Crude Term Contract and the Direct Sale and Direct Purchase agreements are not contracts for any procurement of goods, works or services, and therefore do not involve the use of public funds. Instead, they are simply a shortlisting of off-takers. And unlike what has been reported in the media so far, it is important to set the records straight that the list of approved off-takers does not carry any financial values but simply states the terms and conditions for the lifting and supply of petroleum products.”

    He also disclosed that the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Contract “is a contractor-financed contract which has not yet been finalized or awarded; it is still making its way to the Federal Executive Council, FEC.”

    He noted that there were also three presidential approvals given on Joint Venture financing arrangements, meaning loans to cater for cash call obligations. One of these was okayed by the President in 2015, and two by the then Acting President in 2017.

    Lastly, on the NPDC, he said there is no contract in the $3BN to $4BN range as reported in the media.

    “You can then see from the foregoing that the $25BN being bandied in the media does not exist. There is no $25BN missing,” Akande concluded.

     

  • Another storm against Buhari’s men

    Another storm last week gathered again against some key officials in the President Muhammadu Buhari’s administration.

    The two officials now in the eye of the storm are the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Maikanti Baru, and the Inspector General of Police, Ibrahim Idris.

    Despite one of the cardinal goal of the government being fighting corruption to a standstill, it is sad that the main issues against these two officials border on corruption.

    The lid was blown off the alleged irregularities and on-going mess in NNPC when a protest letter by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu addressed to the President, was leaked.

    The country is yet to fully recover from the massive looting that took place in the oil sector under the past administrations.

    While the prices of oil in the international market hovered over $100 per barrel under those administrations, observers noted that there was little to show in the country for the huge revenue.

    Rather than use the income to develop the country, Nigeria remained lacking in basic infrastructures while substantial parts of the income fraudulently found their ways into the private pockets of those in charge.

    The former Minister of Petroleum Resources under the last administration, Mrs. Diezani Allison-Madueke, is still facing one corrupt charge or the other in Nigeria and the United Kingdom.

    Besides other allegations against the current GMD of NNPC, Kachikwu had last week specifically alleged in the letter that $25 billion contracts awarded by Baru didn’t follow due process.

    The letter, titled ‘Re: Matters of insubordination and lack of adherence to due process by the GMD NNPC – Dr. Baru,’ with reference number HMS/MPR/001/VOL.1/100 and dated August 30, 2017, reads in parts “Mr. President, yesterday (August 29, 2017) like many other Nigerians, l resumed work and confronted with many publications of massive changes within the NNPC.

    “Like the previous reorganisations and ‘repostings’ done since Dr. Baru resumed as GMD, I was never given the opportunity before the announcements to discuss these appointments.

    “This is so despite being the Minister of State, Petroleum, and Chairman, NNPC Board.

    “The board of NNPC, which you appointed and which has met every month since its inauguration, and which, by the NNPC, is meant to review these planned appointments and postings, was never briefed.

    “Members of the board learnt of these appointments from the pages of social media and the press release of NNPC.”

    Stressing that Baru ignored his earlier warnings to him, he said “Not only did he not give my letter the courtesy of a reply, he proceeded to announce the appointments without consultation on board concurrence.

    “Mr. President, please note that there is a board service committee, whose function is to review potential appointments and termination of senior staff prior to implementation. This committee was also not consulted.

    “The effect of the attitude of the GMD and the sidelining of the board is that there is a fear culture in the NNPC,” Kachikwu said.

    In his prayers to the President, Kachikwu said “We save NNPC and the oil industry from collapse arising from the above non-transparent practices and empower the board you inaugurated to do the needful.

    “That you save the office of the Minister of State from further humiliation and disrespect by compelling all parastatals to submit to oversight regulatory mandate and proper supervision which I am supposed to manage on your behalf,” he stated

    The major opposition Peoples Democratic Party (PDP) wasted no time to demand Baru’s immediate suspension.

    The National Publicity Secretary of PDP, Prince Dayo Adeyeye, had said “As a political party, we expect that the President, who prides himself as an indefatigable corruption fighter, would for once try to live above board, by genuinely allowing one of his own, accused of corruption, get properly investigated and prosecuted as a show of his impartiality in the war against corruption.

    “He should do this to correct the open impression Nigerians have about his so called anti-corruption war; that it’s just a tool of persecution of perceived enemies.

    “We view the allegations levelled against Baru by Kachikwu as too grave to be swept under the carpet and we insist that the NNPC GMD must be treated like an accused who should not have the opportunity to influence investigation into his alleged misdeeds.

    “In this light, we demand an immediate suspension of the NNPC GMD so that proper investigation can be carried out by the relevant anti-corruption agencies.” he said

    Also worried by the allegations in the oil sector, the Senate last week set up a committee chaired by Senator Aliyu Wammako, to investigate the issue.

    Unlike the Baru case where the allegations were raised within the executive arm of government, the allegations against the Inspector General of Police was spearhead by a sitting Senator of the Federal Republic of Nigeria, Senator Isa Hamma Misau (Bauchi Central).

    Apart from corruption allegations, Misau also raised allegation of infidelity against the Inspector General of Police.

    The Senate constituted a Special panel, headed by the Senate Deputy Chief Whip Francis Alimikhena (Edo North) to investigate the Inspector General of Police for alleged misappropriation of funds, illegal promotion and posting of senior officers and bribery and to also investigate claims that the IG put an officer in the family way and secretly wedded her in Kaduna.

    It also mandated its Committee on Ethics, Privileges and Public Petitions to investigate claims of professional misconduct against the IGP.

    All these allegations came to the public domain few months after some top officials of the government including  the suspended Secretary to the Government of the Federation (SGF), Babachir David Lawal, was investigated on alleged corruption charges.

    His case is yet to be resolved as the President might still be studying the investigative report submitted by the Vice President Yemi Osinbajo led three man committee.

    Also the resolution by the Senate not to confirm the appointment of the acting Chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, is still subsisting.

    It will be a plus for the government to do everything possible to get to the bottom of these fresh cases.

    The administration should  also remain fair and just to all those involved in the alleged corruption issues, by giving all, fair hearing in a bit to get to the root of the issues.

    This is important, at least, to counter the frequent claims of selectiveness of its anti-corruption battle been leveled by the opposition party against the government.

    It should guide against being seen and viewed as playing the ostrich when corruption case is leveled against one of its officials.

     

  • NNPC: PENGASSAN, NUPENG rally behind Baru

    NNPC: PENGASSAN, NUPENG rally behind Baru

    Unions in the oil and gas sector on Monday pledged support for the ‘transformation stride’ of the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC) Dr Maikanti Baru.

    The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) made the pledge in Abuja in a statement by Mr Ndu Ughamadu, NNPC Group General Manager Group Public Affairs Division.

    Read: $25bn NNPC contract: Buhari vets Kachikwu’s petition

    The Minister of State for Petroleum Resources, Dr Ibe Kachikwu had accused Baru of flouting contractual agreements, creating a fear culture in the corporation and insubordination among others.

    Ughamadu, reacting to the allegations on Monday, however, said the Minister’s allegations were not true as due process had been followed in the corporation’s various activities.

    Ughamadu said at a solidarity visit to the GMD, the National President of PENGASSAN, Mr Francis Johnson, said the unions and its members considered it appropriate to rally round Baru and the NNPC Management to pledge their support.

    ”The unions’ support for the GMD was based on his ability to walk his talk since assuming office last year.

    Baru and Kachuckwu

    ”The National body of PENGASSAN and all the NNPC in-house unions are here today to show our support for you.

    ”You have brought stability to the NNPC and we are happy today that staff morale is high. You were Chairman of NNPC Anti-Corruption Committee for over five years and that was what informed your appointment as GMD of NNPC.

    ”Today, all the bullets you are taking are on behalf of members of staff. We will continue to pray for you, God will continue to guide and shield you,” Ughamadu quoted Johnson.

    Also: $25b contracts: NNPC, Baru tackle Kachikwu

    Ughamadu said the unionist called on Nigerians to be cautious of their comments on the controversy, adding that any wrong information was capable of discouraging investors from the oil and gas industry.

    He said the NNPC Group Chairman of PENGASSAN, Mr Sale Abdullahi, who also spoke during the solidarity visit disclosed that part of the unions’ concern had to do with the need to protect not only the GMD but the NNPC as an institution.

    ”Baru had streamlined the processes and procedures in the Corporation leading to the full restructuring which was beginning to yield positive results.

    ”Today, the GMD and NNPC Management receive inputs from staff and this gesture by Dr Baru has given members of staff a sense of belonging.

    ”Today, our inputs are being implemented and we are highly motivated.”

    Other union leaders who were at the meeting to lend support were the Group Chairman of NNPC NUPENG, Udofia Benjamin and Chairman of NNPC Corporate Headquarters Chapter of PENGASSAN, Mathew Duru.

    Also speaking, Baru described the allegations of award of contracts without regard to due process as unfounded and unfortunate.

    He explained that as a former chairman of the NNPC Anti-Corruption Committee, he would be the last person to breach the procurement process by disregarding extant laws and rules.

    The GMD said both the NNPC Act and Public Procurement Act vested procurement powers on the NNPC Tenders Board, the President and the Federal Executive Council (FEC) depending on the cost threshold, stressing that the NNPC Board had no role whatsoever in the process.

    ”I know for those of you who are following what we are doing here, you know that there’s no money lost and no process has been breached.

    ”Our contracting process is perfect and we will continue to follow the process. The NNPC Board has no role, I repeat, has no role as far as the contracting process is concerned,” Baru said.

    He said the crude term contract and the DSDP agreements were not contract as such but pre-qualification of off-takers of crude oil.

    ”The case of DSDP, is of those that will take crude and give us products in return.

    ”So there is no value to them. But humongous figures have been put forward mainly to incite the public, it is most unfortunate.”

  • $25bn NNPC contract: Buhari vets Kachikwu’s petition

    $25bn NNPC contract: Buhari vets Kachikwu’s petition

    President Muhammadu Buhari met with the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, for one hour at the Presidential Villa yesterday.

    The meeting was the President’s response to the reported dispute between Kachikwu and the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru, over the latter’s alleged award of $25 billion contracts without deference to the minister.

    Investigation conducted by our correspondent revealed that President Buhari met with Kachikwu while Vice President Yemi Osinbajo had audience with Baru in a different meeting.

    A top source, who spoke in confidence, said: “The President took time to review all the issues raised in the August 30 memorandum. The points were considered one by one.

    “They met for about an hour with the President listening and taking notes.

    “And the minister, who used the opportunity to restate his high regard for the President, explained how the GMD had been treating him with disdain over what he wrote in his memo.

    “He also said he was not out to sabotage the Federal Government under any guise.”

    Findings however revealed that the GMD of NNPC met separately with Vice President Osinbajo.

    The source said: “I am aware the GMD also came to have audience with the Vice President.”

    There were indications yesterday that President Muhammadu Buhari might invite members of the board of NNPC to a meeting following revelations that they had “intervened” in the crisis of confidence between Kachikwu and Baru some months ago.

    It was learnt that the President would find out from the board members if the disagreement over the contracts was actually brought to their notice.

    A government source added: “There is no way the President will not hear from the board members. The Minister alleged that he was sidelined and in over one year of Baru’s tenure, no contract has been run through the board.

    “The GMD of NNPC is adamant in maintaining that every transaction was reported to the board, whether on or before the inauguration of the board. He has cited minutes of board meetings.

    “It is now left to the President to hear from board members on what actually happened.”

    A source close to the board of NNPC said: “The truth is that the problem between the Minister and the GMD is mainly ego.

    “Kachikwu tried and Baru tried in addressing the rot in the oil sector and NNPC. The gains are visible for all stakeholders in the oil and gas industry.

    “In the past few months, we have been intervening in the crisis of confidence between the Minister and the GMD. They had been having issues and we have been able to control the situation.

    “For instance, they had disagreement on appointments. We were decisive and we made a pronouncement.

    “We advised them on how to go about doing things to sustain the stability we are gradually experiencing in the oil and gas industry.”

    On the disputed contracts, the source said: “The award of about one or two contracts preceded the inauguration of the board. For instance, when the NNPC entered into the AKK pipeline contract, which the minister said was valued at approximately $3b, there was no board then. But when it was reported to the board, we were told it was at no cost to the Federal Government.”

    The minister had accused the GMD of awarding $25 billion contracts without consulting either his office or the Board of NNPC.

    He blamed the GMD of alleged insubordination, lack of adherence to due process and running a “bravado management style.”

    He said: “The following major contracts were never reviewed by or discussed with me or the Board of NNPC:

    • The Crude Term Contracts – value at over $10b
    • The DSDP contracts – value over $5b
    • The AKK pipeline contract – value approximately $3b
    • Various financing allocation funding contracts with the NOCs – value over $3bn
    • Various NPDC production service contracts – value at over $3bn – $4bn

    “There are many more, Your Excellency. In most of these activities, the explanation of the GMD is that you are the Minister of Petroleum and your approvals were obtained. However, the correct governance should be that the Minister of State and the Board review the transaction and give their concurrence prior to presentation to you.

    “As in many cases of things that happen in NNPC these days, I learn of transactions only through publications in the media. The question is why is it that other parastatals which I supervise as Minister of State or Chair of their Boards are able to go through these contractual and mandatory governance processes and yet NNPC is exempt from these?

    “I know that this bravado management style runs contrary to the cleansing operations you engaged me to carry out at the inception of your administration. This is also not in consonance with your own renowned standards of integrity.”

  • Kachikwu keeps mum after meeting with Buhari  in Aso Rock

    Kachikwu keeps mum after meeting with Buhari  in Aso Rock

    The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu on Friday kept mum over the outcome of his meeting with President Muhammadu Buhari.

    He had met behind closed doors with the President at the Presidential Villa, Abuja.

    Kachikwu, who arrived Aso Rock around 11.30a. m. left around 12:50 p.m

    He simply said “No comment” when approached by journalists as he walked out of the President’s office with the Special Adviser to the President on Media and publicity, Femi Adesina.

    The minister has alleged that $25 billion contracts have been wrongly awarded by the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC),  Dr. Maikanti Baru.

    His protest was contained in a letter to the President, which somehow got leaked to the public on Tuesday.

    Apart from the Senate mandating its committee to probe the matter, the Peoples Democratic Party (PDP) had demanded for Baru’s sack.