Osinbajo says he signed joint venture financing not NNPC contracts

BREAKING Kachikwu Baru meet discuss potentials in oil sector

Kachikwu and Baru met to discuss the future of the country’s petroleum industry

PANDEF also came hard on the Group Managing Director, NNPC, Maikanti Baru, saying that narrative available clearly showed that he flouted the relevant provisions of the constitution in the alleged $25bn contracts he awarded without recourse to the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu.

"The law actually provides for those authorisations".

A communique at the end of its National Executive Council (NEC) meeting, signed by Publicity Secretary Muhammad Ibrahim Biu, said: "The meeting was concerned about the open altercation between the minister and GMD of NNPC, over allegations of contract awards bordering on managerial imperfection and acts of insubordination".

Professor Osinbajo said on Thursday, that the approvals were specifically for financing joint ventures through loans and not contracts.

Osinbajo's response came shortly after Laolu Akande, his spokesman, confirmed that his principal had approved recommendations (on the loans) "after due diligence and adherence to established procedures".

"We expect the minister to start by showing an example by publicly apologizing over his leaked letter which almost brought down the integrity of the NNPC GMD, the administration of the President Muhammadu Buhari, and the Nigerian petroleum industry".

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

But contrary to the position of the Vice President that what he approved were for financing arrangements, NNPC in a statement earlier said it received presidential approvals for two oil contracts on July 10 and July 31 worth $1 billion and $780 million, respectively.

The Presidency has responded to inquiries on the operations of the joint venture cash calls in the oil industry, stating that the reversal of the payment model followed due process.

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".

NNPC said Kachikwu was expressly consulted by the GMD and his recommendations were taken contrary to the assertion that he was never involved in the 2017/2018 contracting process for the crude oil.

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