Vice President Yemi Osinbajo

NNPC: I granted Presidential approval for financing arrangements not contracts – Osinbajo

Spread the love

By Ismaila Chafe


Abuja    –       Vice-President Yemi Osinbajo has stated that the approvals he granted to the NNPC while he was Acting President were for financing arrangements for the Joint Ventures between the corporation and International Oil Companies, and not approvals for contracts.

Osinbajo made this clarification in a statement issued by his Senior Special Assistant on Media and Publicity, Mr Laolu Akande, in Abuja on Thursday.

He said that the presidential approvals were specifically for financing joint ventures, and they were loans not contracts.

According to the vice president, the law actually provides for those authorisations.

The statement reads in part: “Approached by reporters after the ground-breaking multi-billion Naira historic Bonny-Bodo road project, in Bonny, Rivers State, Vice President Yemi Osinbajo, explained specifically that the approvals he granted to the NNPC while he was Acting President were for financing arrangements for the Joint Ventures between the corporation and IOCs, and not approvals for contracts.

Related Story:  Communities will determine their projects, says Dogara

“These were financing loans, of course, you know what the Joint Ventures are, with the lOCs, like Chevron, that had to procure.

“In some cases, NNPC and their Joint Venture partners have to secure loans and they need authorisation to secure those loans while the President was away.

“The law actually provides for those authorisations. So I did grant two of them and those were presidential approvals, but they are specifically for financing joint ventures and they are loans not contracts.’’

Akande had earlier tweeted on the same matter thus: “In response to media inquiries on the NNPC Joint Venture financing arrangements, VP Osinbajo, as Acting President, approved the recommendations after due diligence and adherence to established procedures.

“This was, of course, necessary to deal with huge backlog of unpaid cash calls which the Buhari administration inherited, and to incentivize much needed fresh investments in the oil and gas sector.’’

The News Agency of Nigeria (NAN) recalls that the Minister of State for Petroleum, Ibe Kachikwu, had, in a memo leaked to the media, informed President Muhammadu Buhari that the Group Managing Director of Nigerian National Petroleum Corporation, Mr Maikanti Baru, was disrespectful to him.

Related Story:  NFIU Bill Will Be Passed this Week - Saraki Assures

He also allegedly accused the GMD of awarding contracts worth over 25 billion dollars without approval of the board of the corporation.

However, Baru, had reacted to the allegations by the minister in a statement signed by the Group General Manager, Group Public Affairs Division, Ndu Ughamadu titled “Allegations of Lack of Adherence to Due Process in NNPC Contract Awards.’’

Baru stated that the laws of the Commission, “do not require a review or discussion with the Minister of State or the NNPC Board on contractual matters.”

The NNPC boss was also quoted as saying that the 25 billion dollars for financing arrangements between the corporation and IOCs had presidential approval.

Spread the love

Leave a Reply

Sundiata Post Media Ltd.

Address: 3rd Floor Office Suite, Bayelsa State Guest House, Plot 1038, Shehu Shagari Way, Maitama, Abuja, Nigeria.
Tel: 08033083361, 08094208271 and 092900705
Whatsapp: 08053069436

Enugu Regional Office: SW 1 New Haven Shopping Mall, Enugu, Enugu State, Nigeria.
Tel: +234(0)7062582838

London Office: 18 Belgrave Avenue, Wd18 7UE, Watford, United Kingdom.
Tel: +447417554143
Dubai Office: PAU Management Suite, Level 23 - Boulevard Plaza Tower 2, Emaar Boulevard,
P. O. Box 124342, Dubai, UAE.
Tel: +971 4 4096849 | Fax: +971 4 409 6850
About Us

SundiataPost is published by Sundiata Post Media Limited, Sundiata Post is Nigeria’s most authoritative online newspaper and ranks among the top five online news platforms in Nigeria.

Guild of Corporate online publishers
A Glance at Our Advert Rate.

Inside Pages

Size In Pixels - Amount

120×180 - N27,967.50

300×100 - N24,695

Text Link - N11,275

More Details info

About Us | Contact Us | Privacy Policy | Terms of Use | Advert Rate