I approved NNPC’s joint venture financing contracts, Osinbajo admits

Vice-President Yemi Osinbajo says he approved the NNPC joint venture financing contracts as claimed by the corporation in a statement on Monday.

Laolu Akande, Senior Special Assistant to the Vice President on Media and Publicity,made this known via his verified twitter handle on Thursday.

Akande said Osinbajo approved the recommendations for the contracts in his capacity as the Acting President when President Muhammadu Buhari was away on medical leave.

He said that the Osinbajo gave his approval after due diligence and adherence to established procedure.

“In response to media inquiries on NNPC joint venture financing, VP Osinbajo, as Ag President approved recommendations after due diligence and adherence to established procedure,” the tweets read.

“Action was necessary to deal with huge backlog of unpaid cash calls which Buhari administration inherited and also to incentivise much needed fresh investments in the oil and gas sector.”


In a memo to Buhari, Ibe Kachikwu, Minister of Sate for Petroleum Resources, had accused Maikanti Baru, Group Managing Director of the NNPC, of unilaterally approving the contracts without due process.

“Mr. President over one year of Dr. Baru’s tenure, no contract has been run through the Board,” Kachikwu alleged.

“The following major contracts were never reviewed by or discussed with me Board of NNPC: The Crude Term contracts- value at over $10bn; The DSDP contracts- value over $5bn; The AKK pipeline contract- value approximately $3bn; 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 the State and the Board review the transaction and give their concurrence prior to presentation to you.”

But the NNPC issued a statement denying the allegations and insisting that the projects were duly approved by the President who also doubles as the substantive Minister of Petroleum Resources.


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