I didn’t approve NNPC’s N640 billion contracts, says Osinbajo

Nigerians may not have heard the last concerning the controversial contracts in the oil industry worth billions of naira as the Vice President, Prof Yemi Osinbajo, who had earlier on Thursday through his media aide, Laolu Akande, admitted to signing the controversial contracts issued another statement denying same.

The scandal was blown open by the Minister of State for Petroleum, Dr. Ibe Kachikwu, in an August 30 memo he sent to the president alleging that the management of the Nigeria National Petroleum Corporation (NNPC) led by the Group Managing Director, Dr. Maikanti Baru, awarded up to $25 billion in oil contracts under different guises without recourse to NNPC board or himself as its chairman. The memo sparked nationwide controversy following its leakage on the Internet October 3.

The NNPC pushed back in a statement Monday, saying Kachikwu’s complaints were misplaced as Baru only needed to get input and approval from President Buhari, who is also the substantive Minister of Petroleum Resources.

The agency also listed some contracts that received presidential approvals between September 2015 and July 2017.

The statement said NNPC received presidential approvals for two oil contracts on July 10 and July 31 worth $1 billion and $780 million, respectively.

The timeline indicated that the contracts were signed on dates Buhari was on medical leave in London and Osinbajo was acting as president in line with the Constitution.

The oil corporation agreed, admitting on Wednesday that the presidential approvals it received for two oil contracts worth N640 billion were granted by Vice President Yemi Osinbajo during his time as acting president.

The “Acting President Yemi Osinbajo gave the approval,” Ndu Ughamadu, spokesperson for the NNPC, said in a message on Wednesday.

Reacting to NNPC’s story, Osinbajo on Thursday admitted approving the NNPC contracts as disclosed by the oil company. Akande confirmed that in a series of tweets on his confirmed Twitter handle, @akandeoj.

Akande said Osinbajo approved the recommendations for the contracts as part of necessary actions to deal with the backlog of unpaid cash calls and incentivise investments.

He added that the approval was given after due diligence and adherence to established procedure.

Akande explained that his principal approved the contract in his capacity as the Acting President when President Muhammadu Buhari was away on medical vacation.

“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.

“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,” he said.

But later on Thursday, Laolu issued another statement, which seems to have contradicted the earlier one stating that the Vice President only approved financing arrangements for the Joint Ventures between the corporation and IOCs, and not contracts.

The NNPC is yet to react to the latest twist in the unfolding drama.

Below is the press statement from the Vice President’s office

OFFICE OF THE VICE PRESIDENT

PRESS RELEASE

Approached by reporters after the ground-breaking multi-billion Naira historic Bonny-Bodo road project, in Bonny, Rivers State, Vice President Yemi Osinbajo, SAN, 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.

Said he: “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.

Earlier today, I had 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.

Laolu Akande

Senior Special Assistant to the President on Media & Publicity

Office of the Vice President

12th October, 2017