No Fact In $25bn NNPC Contract Award – Presidency
The Presidency has described as false, reports $25 billion worth of oil contracts were awarded by the Nigeria National Petroleum Corporation, NNPC, under the leadership of its Group Managing Director, Dr. Maikanti Baru.
In a statement on Sunday evening, the Presidency was reacting to a leaked memo by the Minister of State for Petroleum, Ibe Kachikwu, petitioning President Muhammadu Buhari over Baru’s alleged insubordination and abuse of office.
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In the petition that has since sparked controversy, the minister called the attention of President Buhari to a $25 billion contract scam allegedly involving the NNPC GMD.
Kachikwu had given a breakdown of the following contracts approved by Baru and that were never reviewed by or discussed with the board of the NNPC:
**1, The Crude Term Contracts valued at over $10billion;
**2, The DSDP Contracts with over $5billion;
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**3, The Akk Pipeline Contract valued at $3billion;
**4, Various financing allocation funding contracts with the NOCs valued at $3billion and;
**5, Various other NPDS production service contracts valued at between $3-4billion.”
However, in a response today, the Presidency said the impressions have been maliciously created, adding that the said projects are not procurement contracts.
Claims that $25BN worth of oil contracts were awarded by NNPC or that $25BN NNPC funds are missing are both FALSE—https://t.co/XOg386cvqr pic.twitter.com/h3fNuL5W8C
— Presidency Nigeria (@NGRPresident) October 15, 2017
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The Crude Term Contract and DSDP agreement are not procurement contracts but instead a shortlisting process for off-takers and suppliers.
— Presidency Nigeria (@NGRPresident) October 15, 2017
For the shortlisting there were public adverts in the mass media seeking Expressions of Interest (EoI). Bids submitted were publicly opened.
— Presidency Nigeria (@NGRPresident) October 15, 2017
None of the Contracts being misreported is a procurement contract. No contracts were awarded, no monies paid to contractors—or missing.
— Presidency Nigeria (@NGRPresident) October 15, 2017
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Claims circulating on social and traditional media that $25BN is missing or has been awarded in NNPC contracts are FALSE. Kindly Disregard.
— Presidency Nigeria (@NGRPresident) October 15, 2017
Ajaokuta-Kaduna-Kano Gas Pipeline Contract is a contractor-financed project that has not yet been finalized/awarded. Awaiting FEC approval.
— Presidency Nigeria (@NGRPresident) October 15, 2017
The 3 presidential approvals in question are for Joint Venture (JV) financing arrangements, i.e. loans to cater for Cash Call obligations.
— Presidency Nigeria (@NGRPresident) October 15, 2017
These approvals, to enable the JVs raise bank financing, are provided for in law, and were granted in accordance with due process. https://t.co/NCvtcl5ojh
— Presidency Nigeria (@NGRPresident) October 15, 2017
Regarding the NPDC, there is no contract in the $3BN to $4BN range as reported in the media. The claims are false, and should be disregarded
— Presidency Nigeria (@NGRPresident) October 15, 2017
There are no financial values attached to this. They’re simply shortlists stating terms/conditions for lifting/supply of petroleum products. https://t.co/bnN5NWeKo0
— Presidency Nigeria (@NGRPresident) October 15, 2017
Note that proceeds from the sale of crude sold by any firm on behalf of Nigeria go directly to the Federation Account & not to the firm.
— Presidency Nigeria (@NGRPresident) October 15, 2017
Also note that @MBuhari administration in implementation of TSA has closed multiple @NNPCgroup accounts, to promote transparency & probity.
— Presidency Nigeria (@NGRPresident) October 15, 2017
There is no NNPC $25BN missing or unaccounted-for. Please beware of sensational/malicious reporting that has no basis in facts.
— Presidency Nigeria (@NGRPresident) October 15, 2017
