TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
No Result
View All Result

The NNPC’s $25 billion contract awards scandal – Tribune

The Citizen by The Citizen
October 10 2017
in Public Affairs
A A
0
The NNPC’s $25 billion contract awards scandal – Tribune

The letter recently written by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, to President Muhammadu Buhari on alleged malfeasance in the oil industry has gone viral in the polity. This is especially because of what it portends for Nigeria and the Buhari government’s claims to integrity. In the letter, Kachikwu documented a number of alleged abuses of process in the Nigerian National Petroleum Corporation (NNPC) under Dr. Maikanti Baru, the Group Managing Director. They included insubordination and circumvention of authorities in the award of contracts which came up to about $25 billion, in gross violation of the NNPC Act. Baru, it was alleged, singularly awarded the contracts worth about N9 trillion, N2.3 trillion more than the country’s budget, without recourse to the board of the corporation.

Kachikwu also alleged that attempts he made to see the president, who is also the Minister of Petroleum Resources, were frustrated by some persons in the Presidency. He also raised so many scenarios which made presidential approval of the humongous contract awards unlikely. One of such was that even when the president was observing his medical vacation abroad and had transmitted the Presidency to then Acting President Yemi Osinbajo, Baru still claimed that he approved the controversial contracts. But perhaps the most awkward development is that the Presidency has given no identifiable or coherent response to the allegations. The closest to a response by the Federal Government was a private meeting between the president and Kachikwu, on the one hand, and another one between Baru and the vice president, on the other. Then, there was a response on Monday by the Group General Manager of the NNPC, Ndu Ughamadu, who said that the NNPC board, the president or the Minister of State did not have to approve the contract awards, claiming that only the NNPC Tenders Board was empowered to so do.

The NNPC’s response was just an attempt at obfuscating the issues. The corporation, for instance, claimed that the contracts could not be so called because they were not expected to be presented to the board as contracts. But the unimpeachable fact remains that the sum of N9 trillion went out of the national coffers through a nebulous ‘internal process.’ Worse still, the government’s silence on this alleged malfeasance, the biggest in the history of Nigeria, suggests an attempt to make the revelations and their consequences for it a family affair. Many issues raised by the letter, which were further worsened by the NNPC’s outrageous response, call for concern. First, what kind of systemic laxity would allow a single individual to approve contractual dealings in the oil sector that were more than the country’s budget? The national budget of N7.3 trillion went through a number of gruelling exchanges between the executive and the legislature before it was passed. There were recriminations between the two arms of government.

That being the case, how could bigger financial dealings with equally huge implications for the growth of the country be the result of mere dialogue between two individuals, namely President Buhari and Baru? Shouldn’t there be a bigger vetting process, for instance, through the National Assembly, before the contracts could be awarded?  Does the NNPC Act give the duo the authority to bypass the NNPC board to approve and award contracts of such stupendous worth?  If the board is a mere rubber stamp as painted by the NNPC, why appoint members to it in the first place?  Indeed, what kind of law would allow  the NNPC GMD to bypass the board and the supervising minister and approve transactions in excess of the country’s budget? Has such a law not covertly made a national Frankeinstein monster of the NNPC leadership? Again, did the transactions pass through President Buhari? If the GMD was not mandated by law to discuss them with Kachikwu or the board, there really would have been no reason to do so with the president.

The Buhari government must act fast and tell the nation its role in the said contract awards. Already, there have been insinuations that the contract awards were the All Progressives Party’s (APC) own manner of amassing funds for the 2019 general election. More fundamentally, for a government like Buhari’s which advertises its alleged purity of pedigree, it can ill afford to keep mute in the face of this alleged corruption. Already, there are sarcastic comparisons of the alleged heist in the NNPC with the one allegedly perpetrated by former Minister of Petroleum, Diezani Alison-Madueke. Sarcastic comments are being made to the effect that two ministers handling the portfolio, one former (Madueke) and the other current (Buhari), have both soiled their hands. This is a distressing development.

The allegation that Dr. Kachikwu was prevented from seeing the president needs to be addressed. In the life of this administration, many such allegations have been made. Ministers are alleged to queue up to see the president, failing to do so in most cases. It is alleged that only those who have personal relationships with the president or his kitchen cabinet, whom many refer to as a cabal, get to see him to review the assignments he gave them. This would make anyone wonder what kind of government is being run where the boss does not get to talk to his employees on how far they have been able to go in achieving his projected vision. The allegations levelled against Baru are too weighty to be explained away in the peremptory manner the NNPC did on Monday. They puncture the government’s claim to a moral right to conduct an anti-corruption war. If left unaddressed, the allegations are capable of dashing any hopes of redemption for the country.

Previous Post

Withdraw the NGO Regulatory Bill – The Sun

Next Post

History as Iceland, Serbia qualify for 2018 World Cup

Related Posts

FAAC shares N2.09tr to FG, states, local councils as October revenue
Public Affairs

FAAC bonanza: Nigeria’s fiscal paradox – Punch

September 3 2026
Interstate highways of agony, hollow excuses – Punch
Public Affairs

Interstate highways of agony, hollow excuses – Punch

September 1 2026
Mass presence of governors in off-cycle elections – Punch
Public Affairs

Mass presence of governors in off-cycle elections – Punch

August 27 2026
Clerics must preach peace, not division – Punch
Public Affairs

Clerics must preach peace, not division – Punch

August 25 2026
Tax reform: Northern senators in closed-door meeting as bill scales second reading
Public Affairs

Tax reform must end multiple taxation – Punch

August 24 2026
BREAKING: Kidnapped Oyo pupils, teachers regain freedom
Public Affairs

Terror victims deserve care – Punch

August 21 2026
Next Post
History as Iceland, Serbia qualify for 2018 World Cup

History as Iceland, Serbia qualify for 2018 World Cup

Is Buhari truly fighting corruption?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FROM THE GRASSROOTS

Lagos demolishes shanties after four die in community clash

Lagos demolishes shanties after four die in community clash

by The Editor
August 30 2026
0

...

Kano, Sokoto, others spend N53.2bn on scholarships abroad

INEC fixes Sept 19 for Kano Assembly by-election

by The Editor
August 27 2026
0

...

Awujale: Ruling House sues Ogun, kingmakers

Awujale: Ruling House sues Ogun, kingmakers

by The Editor
August 25 2026
0

...

Umahi’s son wins Ohaozara chairmanship as APC sweeps all Ebonyi LGAs

Umahi’s son wins Ohaozara chairmanship as APC sweeps all Ebonyi LGAs

by The Editor
August 24 2026
0

...

APPOINTMENTS

Tinubu swears in Enitan as new Head of Service

Tinubu swears in Enitan as new Head of Service

by The Editor
August 28 2026
0

...

Tinubu names new Head of Service

Tinubu names new Head of Service

by The Editor
August 19 2026
0

...

Sahara Upstream positions Arahas and SGIR for next growth phase, deepens investment in African oilfield services

Sahara Upstream positions Arahas and SGIR for next growth phase, deepens investment in African oilfield services

by The Editor
August 8 2026
0

...

Police IG deploys new CPs to eight states, other formations

Police IG deploys new CPs to eight states, other formations

by The Editor
August 7 2026
0

...

ODDITIES

Palliatives: Sokoto residents feared dead in stampede at Wammako’s residence

Police Inspector slumps, dies after fitness exercise

by The Editor
September 3 2026
0

How friend deceived me to sell my kidney, bought phones with payment — Victim

How friend deceived me to sell my kidney, bought phones with payment — Victim

by The Editor
August 30 2026
0

Umahi files N2.5b defamation lawsuit against bloggers

Umahi files N2.5b defamation lawsuit against bloggers

by The Editor
August 26 2026
0

GLOBAL NEWS

Iran President thanks Putin for Russia’s stance in war with US

Iran President thanks Putin for Russia’s stance in war with US

by The Editor
September 1 2026
0

...

Saudi Arabia halts multiple visas for Nigeria, 13 others as U.S. suspends visa dropbox

US outlines two family visa options for permanent residence

by The Editor
September 1 2026
0

...

US Army Secretary submits resignation

US Army Secretary submits resignation

by The Editor
September 1 2026
0

...

Russia helps Niger Republic junta to retake military base

Russia helps Niger Republic junta to retake military base

by The Editor
August 30 2026
0

...

WHO declares global health emergency over Ebola outbreak in Congo, Uganda

WHO confirms Uganda Ebola-free, as virus continues spread in DRC

by The Editor
August 28 2026
0

...

State of the States

Fubara orders fresh LG elections in Rivers State

Fubara signs N1.84tt Rivers 2026 budget into law

by The Editor
September 3 2026
0

...

Lagos empowers 6,190 residents with free vocational, entrepreneurial skills

Lagos empowers 6,190 residents with free vocational, entrepreneurial skills

by The Editor
September 2 2026
0

...

Gov. Mutfwang convenes security council over Plateau attacks

Gov. Mutfwang convenes security council over Plateau attacks

by The Editor
September 2 2026
0

...

Enugu govt gets commendation for successful hosting of 2nd City Marathon

Enugu govt gets commendation for successful hosting of 2nd City Marathon

by The Editor
September 1 2026
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Police slam treasonable felony charge on Katsina man for destroying Tinubu’s billboards

Police slam treasonable felony charge on Katsina man for destroying Tinubu’s billboards

September 3 2026
INEC to conduct mock presidential election

INEC to conduct mock presidential election

September 3 2026
Palliatives: Sokoto residents feared dead in stampede at Wammako’s residence

Police Inspector slumps, dies after fitness exercise

September 3 2026
FAAC shares N2.09tr to FG, states, local councils as October revenue

FAAC bonanza: Nigeria’s fiscal paradox – Punch

September 3 2026

EDITORIAL REVIEW

FAAC shares N2.09tr to FG, states, local councils as October revenue

FAAC bonanza: Nigeria’s fiscal paradox – Punch

by The Editor
September 3 2026
0

Interstate highways of agony, hollow excuses – Punch

Interstate highways of agony, hollow excuses – Punch

by The Editor
September 1 2026
0

Mass presence of governors in off-cycle elections – Punch

Mass presence of governors in off-cycle elections – Punch

by The Editor
August 27 2026
0

Clerics must preach peace, not division – Punch

Clerics must preach peace, not division – Punch

by The Editor
August 25 2026
0

Tax reform: Northern senators in closed-door meeting as bill scales second reading

Tax reform must end multiple taxation – Punch

by The Editor
August 24 2026
0

Opinion

 Akpakomiza and other stories

by The Editor
September 1 2026
0

...

‘Fake’ Agency: Adeyemi insists DG appointment genuine

Fake agencies: Why Nigeria still needs Oronsaye report

by The Editor
August 25 2026
0

...

How Adeleke danced back from the dead

How Adeleke danced back from the dead

by The Editor
August 19 2026
0

...

Adeleke’s win and the cost of winning at all costs

Adeleke’s win and the cost of winning at all costs

by The Editor
August 18 2026
0

...

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.

No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2026 TheCitizen Ng. All Rights Reserved.