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Tag: Maikanti Baru

  • NNPC stocks N2b liters of petrol

    NNPC stocks N2b liters of petrol

    The Nigerian National Petroleum Corporation (NNPC) has a stock of over two billion litres of Premium Motor Spirit (PMS), also known as petrol, to ensure a hitch-free end-of-year movement of motorists, a period hitherto sometimes characterized by supply and demand disequilibrium.

    Speaking at the weekend after his investiture as Honourary Special Marshal by the Federal Road Safety Corps (FRSC), the Group Managing Director of the Corporation, Dr. Maikanti Baru, assured that adequate measures were in place to ensure that motorists have unimpeded access to fuel ahead of the forthcoming end-of-year festivities.

    Dr. Baru said the provision of adequate petroleum products would not only ease transportation but would also make our roads safer for motorists, just as other consumers too would have no need to hoard highly inflammable products in jerry cans, among others, which may pose as safety challenge to them.

    According to the corporation in a statement yesterday, Baru said that “As we speak, NNPC has over two billion litres of petrol and we want to sustain this level from now on till the end of the year and beyond. This volume would give the country product sufficiency of about 60 days, well above the standard 30 days sufficiency threshold.”

    Describing his investiture as an eloquent testament of the Corporation’s long-standing commitment to road safety and support for the FRSC, the GMD said NNPC would remain unwavering in its backing of the FRSC towards achieving its mandate of making our roads safer for motorists and other road users.

    In her remarks, Deputy Corps Marshal in charge of Operations, Ojeme Ewhrudjakpor, who presided over the ceremony, thanked the Corporation for its commitment to road safety.

    Ewhrudjakpor stated that road safety was the responsibility of everyone from motorists to regular road safety officers including special marshals, adding that all have a duty to ensure that the safety target which involves limiting the number of casualties on our road is achieved.

  • NNPC stocks 2bn litres of petrol for year-end movements – Baru

    NNPC stocks 2bn litres of petrol for year-end movements – Baru

    Dr Maikanti Baru, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), says the corporation had stocked over two billion litres of petrol.

    In a statement by Mr Ndu Ughamadu, Group General Manager, Group Public Affairs Division, Baru said it would ensure a hitch-free end-of-year movement for motorists.

    Baru said provision of adequate petroleum products would not only ease transportation but make the roads safer for motorists during the yuletide period.

    Also, he said other consumers would have no need to hoard highly inflammable products in Jerry cans, among others, which might pose safety challenge to them.

    ”As we speak, NNPC has over two billion litres of petrol and we want to sustain this level from now on till the end of the year and beyond.

    ”This volume would give the country product sufficiency of about 60 days, well above the standard 30 days sufficiency threshold, Baru,” said.

    Baru, who was also decorated as Honourary Special Marshal by the Federal Road Safety Corps (FRSC), described his investiture as an eloquent testament of the corporation’s long standing commitment to road safety and support for the FRSC. (NAN)

  • NNPC new station to ensure energy security – Baru

    NNPC new station to ensure energy security – Baru

    The Nigerian National Petroleum Corporation (NNPC) Group Managing Director, Dr. Maikanti Baru, has described the commencement of operations of the newly constructed ultra-modern mega station of NNPC Retail Limited located along Lagos-Ibadan Expressway, as part of the strategies to ensuring energy security in the country.

    Reviewing the giant strides of NNPC Retail Limited, a subsidiary of the Corporation, Dr. Baru said the subsidiary’s Mega station which has opened to business at Oyeleke Village, around Shagamu Interchange on the expressway, would ensure that thousands of motorists who ply the road enjoy year-round fuel supply at the station, stressing that NNPC would continue to ensure products’ availability in all the nook and cranny of the country.

    The GMD, according to the Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu in a statement on Monday: “NNPC will continue to maintain its leadership position in the supply of another significant product, gas, to the Nigerian market through its Exploration and Production business unit. The Gas & Power Directorate of the Corporation is also recording improved gas supply to domestic, industrial, commercial and power sectors, which stood at an average of 1,200mmscf/d last month.”

    Commenting on the newly constructed Mega station, the Managing Director of the NNPC Downstream company, Mr. Yemi Adetunji, said the Mega station was established in line with the Economic Recovery and Growth initiative of the Change Agenda of President Muhammadu Buhari’s administration and the 12 Business Focus Areas (BUFA) being championed by the present NNPC Management under the leadership of the Corporation’s Group Managing Director, Dr Baru.

    Adetunji said he was sure the station would meet the fuel consumption needs of motorists along the Lagos-Ibadan Expressway.

    The Lagos–Ibadan expressway is a major gateway between Lagos and other parts of Nigeria and continues to record increased vehicular traffic due to the improved condition of the road and reinvigorated Nigerian economy under the stewardship of President Buhari.

    The NNPC Retail currently has a network of over 400 stations and continues to earn the trust of Nigerians in product availability and efficient customer service delivery.

  • 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.

     

  • NARTO, tanker drivers praise Baru

    NARTO, tanker drivers praise Baru

    The Nigerian Association of Road Transport Owners, NARTO, and the Petroleum Tankers Drivers branch of the National Union of Petroleum and Natural Gas Workers, NUPENG, have commended the Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Dr. Maikanti Baru, for ensuring seamless supply and distribution of petroleum products across the country.

    Speaking during a visit to the GMD by the associations, the NARTO President, Alhaji Kassim Ibrahim Bataiya, and Chairman of PTD, Chief Otumba Oladiti, were unanimous in their views that fuel supply and distribution matrix had improved under Dr. Baru’s watch.

    According to Alhaji Bataiya, never in the history of the NNPC did the country record such an achievement which has brought about uninterrupted supply of petroleum products nationwide due to the various strategic measures undertaken by the GMD.

    NNPC Group General Manager, Group Public Affairs Division, Ndu Ughamadu disclosed this in statement yesterday.

    The statement quoted Bataiya as saying that “Petroleum products scarcity has now disappeared from our filling stations. In fact, the retail price of the product has also come down from N145 per litre to N143 per litre. You have also extended considerable assistance to transporters by allocating Automotive Gas Oil, (AGO), at subsidized prices to enable them keep their trucks on the road.”

    The NARTO President also thank Dr. Baru for the settlement of their freight bills of about N80 billion owed by the Petroleum Equalization Fund, PEF, Management Board.

    PTD Chairman, Chief Otumba Oladiti, while re-echoing the zero fuel queue strides of the GMD, noted that the sanity brought to bear on the fuel supply and distribution by Dr. Baru should be extended to the refineries said to be scheduled for rehabilitation.

    While urging the GMD and the NNPC Management to remain focused on their mandate to the country, Chief Oladiti assured Dr. Baru of the tanker drivers’ due support.

    Responding, Dr. Baru thanked the members and leadership of the associations for their kind words, noting that his team would do all it could to remain focus

  • Group condemns NNPC, politicians over Kachikwu’s memo

    Group condemns NNPC, politicians over Kachikwu’s memo

    An advocacy group, Accountability Vanguard (AV), has roundly condemned the attempt by the NNPC and some politicians to blackmail and denigrate the Minister of State for Petroleum Resources, Ibe Kachikwu, on the allegations he levelled against the NNPC.

    In a statement signed by its spokesperson, Comrade Ojelabi Victor, the group said attempts by the state-run firm to try to dismiss, and render irrelevant the allegations levelled against it by the Minister of State for Petroleum Resources, Ibe Kachikwu, Maikanti Baru-led body failed to address the key issues raised by the minister.

    Recall that Kachikwu’s memo to the Nigerian president, which was allegedly leaked, raised quite some dust that bordered around insubordination, corrupt practices and abuse of contracting process.

    The group said the attempt by Baru to defend the indefeasible only confirmed part of the allegations, while most were mainly ignored.

    “The GMD of NNPC claimed that ‘he only needed to get the input and the approval from the president, who is also the substantive Minister of Petroleum Resources’. It got interesting when he went further to assert that ‘Mr. Buhari, as the president and Minister of Petroleum, was the chairman of the NNPC board and the approval he received from him was sufficient.’

    “What Mr. Baru forgot to factor in his jaundiced unhurried response was that the position of the NNPC board’s chairman has been ceded to the Minister of State for Petroleum Resources, Ibe Kachikwu!

    “The act setting up the state-run oil firm empowers the president to delegate someone as the chairman of NNPC board, despite the fact that the president can still act in same capacity without invalidating the position of the delegate.

    “Looking at this holistically, where has Kachikwu gone wrong in his allegations? Let him be!

    “Another issue raised by in the leaked memo was that of corruption and abuse of contracting processes. This was not included in the NNPC’s response to the minister.

    “This, however, did not come as a surprise because the issue of insubordination addressed was secondary, the primary issue which borders on fraud is the contracting process. It’s unfortunate that a firm of the government expected by the act setting it up to be apolitical, like every other sector in Nigeria, has fallen to corruption.

    “It is high time we understood that corruption doesn’t come about only when money is misappropriated but also where fairness and openness are compromised.

    “According to the NNPC handbook on award and execution of contracts, the organisation must be open, economical and transparent in accordance with the provisions of the law and without regard for self-interest.

    “It goes on to state that by the provisions of the Public Procurement Act 2007, the NNPC Tenders Board is the final approving body for NNPC awarded contracts. And any contracts for a value beyond the financial limits of the NNPC Tenders Board will go via the Board to the Federal Executive Council (FEC) for approval.

    “The act also stipulates clearly the limits for financial approval by each level of the government and NNPC thus, Federal Executive Council (FEC)—(From N2.70billion or from $20million), NNPC Tenders Board—(From N1.40million up to N2.70billion and $410million up to $20million, Group Executive Committee (GEC)——(From N540 million up to N1.40 billion and from US$4 million up to US$10 million) and Directorate Executive Committee (DEXCOM)—(From N270 million up to N540 million and from $2 million up to $4 million.

    “By reviewing what the minister alleged, he specifically pointed out that ‘$26billion was awarded without due process’. If Baru’s as NNPC has done no wrong, why was this part and that of personnel appointments omitted in his response?” the group said.

    Until his appointment as Minister of State for Petroleum Resources in 2015, Mr. Kachikwu was the Executive Vice Chairman and General Counsel of Exxon Mobil (Africa).

    He had earlier served as the GMD of NNPC until July 2016.

    A first class graduate of law from the University of Nigeria, Nsukka, and the Nigeria Law School, he also holds masters and doctorate degrees in law from the Harvard Law School.

    He started his working career with the Nigerian/American Merchant Bank before moving on to Texaco Nigeria Limited from where he joined Exxon-Mobil.

  • NNPC: Buhari’s silence not helping matters – CSO

    NNPC: Buhari’s silence not helping matters – CSO

    The reaction of the Nigerian National Petroleum Corporation (NNPC) Group Managing Director (GMD), Dr. Maikanti Baru to the Minister of Petroleum Resources, Dr. Ibe Kachikwu memo to President Muhammadu Buhari, on Tuesday, attracted its own reaction.

    Speaking with The Nation on phone, Convener, Say no Campaign, Ezenwa Mwagwu, urged Buhari, who doubles as the substantive Minister of Petroleum Resources to make clarifications on the ranging war of words in the NNPC over award of contract, insubordination and sidelining of Kachikwu from the scheme of things.

    According to him, Buhari should confirm whether Baru presented the report to him and also awarded the contract within the threshold that the Federal Executive Council allowed.

    The member of the Civil Society Organization said that since the president promoted Kachikwu to become the Minister of State for Petroleum Resources, the latter has become irrelevant in the oil and gas industry.

    Ezenwa noted that all the powers in the industry now reside with Buhari and Baru, while Kachikwu is only an onlooker.

    He said that “I think the intervening power of the substantive Minister of Petroleum Resources, (Buhari), who has the responsibility to clear the air on most of the issues.

    Stressing that the issues are about procurement, the activist noted that some critics may have veered of the point to conclude that money is missing.

    Ezemwa submitted that it may not necessarily mean that money is missing.

    He explained that “The issues are around procurement- who has the right to do what. The country is waiting for Buhari to intervene to put an end to the conversation.

    The people talking about money missing have already missed the point because it is about contract award and not necessarily money.”

    He said that: “The silence of the minister (Buhari) has not assisted in putting an end to that rivalry . I know that the BPP has intervened to say issues about procurement and contracts. The minister (Buhari) himself should also come out and state categorically what all of this means.

    “The power is with the GMD and the minister. Having promoted him out of relevance do you still think he has some power? That is why I am asking the substantive minister of petroleum to put an end to the conservation by stating whether him and the Federal Executive Council operated within the threshold that Baru talked about.”

    He said that he submitted the report the minister and Kachikwu is not the minister. He (Buhari) should tell us and his silence is not helping matters.”

    Meanwhile, the Executive Director, Africa Network for Environment and Economic Justice (ANEEJ), Rev. David Ugolor, said that Baru acted with the support of the president, who has refused to react to the issue.

    The advocate of good governance in the oil and gas industry added that Baru “acted with the backing of Mr. President. It wouldn’t have ever happened.”

    According to him, it is unfortunate that Kachikwu has not realized that it is time for him to resign.

    Ugolor said that “Now, he (Kachikwu) has not only been deeply embarrassed but he has also been deeply insulted.”

    He recalled that what happened to the secretary of the NNPC in Jonathan’s administration, Dr. Yinka Omoruke was summarily dismissed by the former Minister of Petroleum Resources, Mrs. Diezani Alison Madueke is now repeating itself.

    The minister had overwhelming influence in the government but now the NNPC boss is wielding the power.

    Ugolor noted that Kachikwu is protecting the interest of the citizenry but doubted whether Nigerians will be there for him when he is facing the music.

    He urged Nigerians to take their destiny into their hands, noting that “if they think that Buhari is going to rescue them, they (Nigerians) are on their own. This is not the first, not the third and not the last, they should not expect any miracle from President Buhari.”

  • 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 board: Agbakoba sues FG for ‘discriminatory’ appointment

    NNPC board: Agbakoba sues FG for ‘discriminatory’ appointment

    A former Nigerian Bar Association (NBA) president Dr Olisa Agbakoba (SAN) has sued the Federal Government over alleged violation of the Federal Character principle in the composition of the Nigerian National Petroleum Corporation (NNPC) board.

    He said none of the persons appointed to fill the nine positions is from the states that make up the Southeast geopolitical zone.

    According to Agbakoba, more than one person was appointed from other geopolitical zones in violation of the Constitution.

    Members of the board include Dr Tajuddeen Umar (Northeast), Dr. Maikanti Baru (Northeast), Mr. Abba Kyari (Northeast), Mr. Mahmoud Isa-Dutse (North Central), Mallam Mohammed Lawal and Mallam Yusuf Lawal (both Northerners).

    Others are Dr. Emmanuel Ibe Kachikwu (South-South), Dr. Thomas M.A John (South-South), and Dr. Pius O. Akinyelure (South-West).

    “The reason for the action (lawsuit) is that the Federal Government has always discriminated against Nigerians indigenous to the states in the Southeast zone in the appointments into the board of the second respondent (NNPC).

    “The Federal Government, by the lopsided appointment, accords numerical advantage to states in other geo-political zones to the detriment of the applicant’s Southeast geopolitical zone that is totally excluded from the board of the second respondent,” he said.

    According to him, Section 42 of the 1999 Constitution guarantees the right of every citizen to freedom from discrimination.

    Agbakoba said the Constitution also “prohibits any administrative or executive action of the government or application of any law in force in Nigeria discriminating between Nigerians or accords any privilege or disability to any Nigerian, on account of ethnicity, state of origin, etc.”

    Attorney-General of the Federation, NNPC and the Federal Character Commission are the respondents in the suit filed at the Federal High Court in Abuja.

    Agbakoba is seeking a declaration that the distribution of appointment into the NNPC’s Board made on July 5 last year violates the principle of democracy, social justice and Federal Character prescribed by Section 14(1) and (13) of the 1999 Constitution.

    He is praying for an order of perpetual injunction restraining the Federal Government from further violation of the Constitution and other laws including the Federal Character Commission (Establishment, etc.) Act in appointment of NNPC board members.

    He further asked for an order of perpetual injunction directing the Federal Government to henceforth apply the constitutional principles of democracy, social justice and all laws relating to Federal Character, including the Federal Character Commission (Establishment, etc.) Act in appointing NNPC board members.

  • Kachikwu’s claims on oil contracts unfortunate – NNPC

    Kachikwu’s claims on oil contracts unfortunate – NNPC

    The Nigerian National Petroleum Corporation (NNPC) on Monday dismissed as untrue claims by the Minister of State for Petroleum, Dr. Ibe Kachikwu, that he was never involved in the award of major crude oil contracts in the country.

    NNPC said in a statement the minister was expressly consulted by its Group Managing Director (GMD), Dr. Maikanti Baru,  and his recommendations taken into consideration in the crude oil contracting process.

    It also described Kachikwu’s instance that major contracts were never reviewed or discussed with him as “mostly unfortunate.”

    NNPC stressed that all it required to award a contract in the oil and gas sector was the approval of the Tenders Board and not the minister’s endorsement.

    The state oil company’s response followed the report of alleged lack of adherence to due process in the award of contracts by Kachikwu in his August 30 letter to President Muhammadu Buhari.

    The minister had claimed that several major contracts were never reviewed or discussed with him and the NNPC Board.

    The President had since ordered Baru and the entire management team of the Corporation to respond expeditiously to the allegations.

    The statement reads: “It is important to note from the outset that the law and the rules do not require a review or discussion with the Minister of State or the NNPC Board on contractual matters. What is required is the processing and approval of contracts by the NNPC Tenders Board, the President in his executive capacity or as Minister of Petroleum, or the Federal Executive Council (FEC), as the case may be. There are therefore situations where all that is required is the approval of the NNPC Tenders Board, while in other cases, based on the threshold, the award must be submitted for presidential approval. Likewise, in some instances it is FEC approval that is required.

    “It should be noted that for both the Crude Term Contract and the Direct Sale and Direct Purchase (DSDP) agreements, there are no specific values attached to each transaction to warrant the values of $10billion and $5billion respectively placed on them in the claim of Dr. Kachikwu. It is therefore inappropriate to attach arbitrary values to the shortlists with the aim of classifying the transactions as contracts above NNPC Tenders Board limit. They are merely the shortlisting of prospective off-takers of crude oil and suppliers of petroleum products under agreed terms. These transactions were not required to be presented as contracts to the Board of NNPC and, of course, the monetary value of any crude oil eventually lifted by any of the companies goes straight into the federation account and not to the company.

    “Furthermore, contrary to the assertion of Dr. Kachikwu that he was never involved in the 2017/2018 contracting process for the Crude Oil Term Contracts, Dr. Kachikwu was in fact expressly consulted by the GMD and his recommendations were taken into account in following through the laid down procedure. Thus, for him to turn around and claim that ‘these major contracts were never reviewed or discussed with me’ is most unfortunate to say the least.”