After accusing Baru of illegally awarding $2.7B contract, Kachikwu presents same contract to FEC

Baru and Kachikwu
Baru and Kachikwu

The Minister of State for Petroleum, Ibe Kachikwu, on Wednesday presented to the Executive Council of the Federation for approval the controversial $2.7 billion (about N827 billion) gas pipeline contract he accused the Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Maikanti Baru, of awarding two months ago.

Mr. Kachikwu told State House correspondents at the end of the meeting in Abuja that the Council approved a memo for the award of the pipeline contract he earlier said was awarded by Mr. Baru to a Chinese firm.

The contract is for the installation of the new Ajaokuta-Kaduna-Kano, AKK, gas pipelines under a public-private partnership basis.

Nigerians first heard of the contract after a memo by Mr. Kachikwu dated August 30, 2017 to President Muhammadu Buhari was leaked to the media.

In the memo, Mr. Kachikwu accused Mr. Baru of insubordination and of breaching contracting process in awarding the contract.

He said Mr. Baru refused to involve him, as the chairman designate of the NNPC Board and minister in charge of the Ministry of Petroleum Resources, in the processes of the award of the contract. He also said the board of the NNPC was not carried along.

But on Wednesday, Mr. Kachikwu said he presented the contract to FEC for approval again to correct the infringement of due process by the initial approval.

The controversy that followed the revelation of friction between the two most powerful figures in the country’s oil and gas industry raised tension that threatened the stability of the Nigerian economy.

When the two officials later met at the Nigerian Economic Summit in Abuja made a show of reconciliation by embracing before media cameras and pledging to work together for the overall interest of the industry, Nigerians thought the issues had been resolved.

But Mr. Kachikwu’s decision on Wednesday to present the same contract to FEC for approval triggered fresh public curiosity.

He told correspondents that the meeting, presided by Vice President Yemi Osinbajo, approved his memo for the award of the controversial contract.

When completed, he said, the project would allow holistic movement of gas from the southern corridor to the northern hinterlands for increased gas utilization and power generation.

“We presently have trapped power, trapped gas, all in the southern corridors that is going nowhere because of lack of infrastructure. So, that contract has now been awarded,” he told the journalists.

“But, remember that was partially done. This is a contract that has lasted over 13 years. So we got approval for that today (Wednesday), and so that is going forward very nicely,” he said.

Asked why he had to present the contract again to FEC for approval, Mr. Kachikwu told PREMIUM TIMES it was to correct the irregularity he pointed out in his leaked memo to the President.

“What I wrote to the President in my memo, which was presented to FEC, was to remind him that these were some of the contracts he had already approved,” Mr. Kachikwu said.

“What I complained about was about due process not being following in the initial approvals, obtained without seeking my concurrence or input.

“The due process is that before contracts go to FEC, they should go first to the Board of the company, in this case NNPC, to give everyone the opportunity to make their inputs,’ he explained.

He said before he took the latest memo to FEC, he had followed due process, by taking the details back to the Board, briefed members and obtained their buy-in.

“What I did was an inverse approval process, which is post-the-fact, by taking it to the Board before the FEC. After the NNPC Tenders Board, the right thing to do should be for the contracts to go to the minister, who should even have an input before the Tenders Board finishes its work.

“But because the contract value exceeds the $20 million threshold, the minister has the obligation to take it back to the other Board members for them to review it. Whatever is their opinion would be included in the recommendation by the minister to the President, to guide his decision.

“Based on the President’s input as the full Minister, then the contract would go to FEC. That is the due process of how things should be done,” he said.

Mr. Kachikwu said at the point he wrote to the president in October, approval had already been given, without his involvement in the process and without the input of everyone who should contribute to the process.

The minister, who said he was reluctant to talk about the issue again, said he agreed to speak with PREMIUM TIMES to afford Nigerians the full benefit of what happened.

“I don’t want to go through the whole controversy again. It took a lot out of everybody. We managed to calm things down. All what I did was to correct the wrong in the process inversely by taking it to the Board members to enable them be aware of it and make their inputs,” he said.

When contacted for his reaction, NNPC spokesperson, Ndu Ughamadu, said he preferred not to comment on the issue, since all parties in the controversy had since learnt their lessons and moved on “to allow everyone focus on the bigger picture of ensuring a stable growth of the oil and gas industry and the economy.”

Meanwhile, Mr. Kachikwu said apart from the AKK pipeline contract, the FEC also awarded a contract to a consortium “for the Odidi Pipeline Project from Warri and the Southern marshlands, to move about 364 million cubic meters of additional gas to be produced through the Niger Delta, to be fed into the AKK pipeline.

He said the contacts were all part of the government’s gas gathering system.

“So the two contracts taken together, basically will boost gas delivery in Nigeria, for power generation and for the first time begin to take very definitive steps towards the movement of Nigeria from being a crude oil nation into a gas environment,” he said.


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  • share Idea

    Is there any other person in doubt that Buhari administration is the most corrupt administration to have ever ruled Nigeria. How can a government represent a contract that had been approved (supposedly by lying VP ) through someone that we were told does not have any oversight with presentation of same.

    We can wait for 2019 to vote out this incompetent administration and expose their lies to the public

    • Gary

      They are going through the motions to give a semblance of following due process after the fact of short-circuiting the entire process (and whatever kickbacks derived from the contract awards).
      This is the equivalent of a cheating student who spies the answer to a Math problem and wants the teacher to believe he worked from the question.

      • Adele Uhuru

        But what do you expect from a nauseating result forger President – he can only play these crooked games at the level of his intelligence—- the man is doing the best he can here as always

        • Dr Bunmi Binitie

          So you are still hanging on to that evil lie of certificate forgery? How sad!

          Listen, in our own days, we did not even know how to forge certificates and we could not possibly muster the boldness to do that becos the law worked in those days!

          Forgery, 419 etc came with the over-sabi, reckless generation of FFK and after; and that was why he had the liver to formulate such a wicked lie and you all believe it becos forgery is a way of life for many in this generation

    • Adele Uhuru

      They just dispensed some deodorant for the fools, so the thievery will commence with no disturbance – see that is why PMB flew away so not to draw to much attention to these acts of kleptomania going on in his administration – Oga go chop na,. how e go take sponsor e next election
      “wanda ke magana ya ce kudi ba tafi tafi mutuwa ba tare da wani motsi zuwa Birtaniya don wannan magani mai tsabta mai tsabta ba”

    • Tola

      You see how you ridicule yourself. Unfortunate that identity is hidden in social media otherwise it is good to know ignoramuses that jump at headlines without reading. There were 4 items involved, the crude lifting allocation, the JV financing by Shell, the AKK project and the NPDC project. The VP said he approved the JV financing facility, the crude allocation is not a contract and NNPC told you ‘the AKK contract that requires FEC approval has not reached the stage of contract award’. Can’t you go back and crosscheck?

  • Shahokaya

    So can we now assume that the so called missing $2.7 dollars was a calculated lie told by idiots?

    • Adele Uhuru

      calculated lie – it seem you forgot that this is the new changed Nigeria were fraudulent ways is the new means of the day; this is an act to carefully dispense some deodorant (As stated by the honorable member) to cover those the needed coverage, hence to keep the thievery going without disturbance……………….

  • e_orpheus

    _But Mr. Kachikwu’s decision on Wednesday to present the same contract to FEC for approval triggered fresh public curiosity._
    There’s no “fresh public curiosity”. He wanted to draw the President’s attention to a procedural anomaly and did just that. Points have been taken and anomalies rectified. Nothing else to see here, move along..

    • Abdulkareem

      The VP claimed to have signed the contracts and that there was NO procedural anomaly.
      with that, the APC government claimed to have laid the embarrassing illegality to rest.
      Kachikwus move today(forwarding for approval what the VP said he had rightly approved) should cause ‘fresh curiosity’ out of every SANE mind.
      That you pretend to find ‘fresh public curiosity’ strange speaks volumes of who you are and your sate of mind.
      Never worship ‘man’..you will be made to look stup1d by those you defend if you persist.
      *except you are one of the tundemess’ and soyemis of this dark world..who have lost all sense of shame!

      • The concerned

        The VP did not claim to have signed this contract. It was a loan contract the VP claimed to have signed. If in doubt go back to the Premium Times page where the news was broken and read inbetween the lines.

        • De-Gea Messi

          If all the VP signed was a ‘loan contract’, WHO SIGNED this one kachikwu is re-presenting, considering the fact they were said to have been signed while buhari was away and osinbajo acting(coordinating?) on his behalf????
          Like in quicksand, the more these APC men wriggle, the deeper they sink.
          Clowns!!

          • Tola

            Go back and read before you ridicule yourself. NNPC told you this AKK contract had not reached contract award stage. This validates their claim.

      • e_orpheus

        Please read carefully and with understanding. Where in doubt, ask.
        The Vice President, sometime in October, confirmed approving Joint Venture financing and not the award of contracts.
        The NNPC itself confirmed what the Vice President said, as well as the fact that their tenders board unilaterally approved the contracts. This is an anomaly as pointed out by the Minister of State.
        Would you, Mr AbdulKareem, re-present a contract that has already gone through appropriate channels and been approved, for re-approval?
        Let me deal with my state of mind, educate and inform yours first.

      • Tola

        Where did you read that? The VP signed JV financing facility not AKK project which NNPC claimed (correctly as now seen) had not reached contract award stage. Go back and read the memo and NNPC response.

  • forestgee

    The question is how many contracts went under the bridge before Kachikwu shouted? A government of hypocrisy cannot lead with sincerity.

  • obiora

    So it is True?. This prove that it is True.But they told us that it is not True. But did Buhari and his Government have Shame at all?.

  • Hajiya tunsjSoyemi(iya basira)

    Yet Buhari is the minister for petroleum. All this MESS under his nose.
    Pastor Osinbajo said HE signed off the contracts. Then we were told they were not contracts..that kachikwu didn’t know the meaning of contract.
    Hahaha!
    So, a man Kay soyemi and a host of Yoruba APC bootlickers refer to as ‘an upright intelligent pastor’ DOES NOT KNOW THE CORRECT PROCEDURE in signing contracts??
    The Devil is the father of LIES..and those who make lying a habit are his offspring.
    LOL! Make una kontinu!

    • Ubong

      Gbam kaichukwu should have learned from the high sense of adminstrative
      discipline shown by HoSF lady oyo ita, when everything was done to bullied her to accept responsibility in the corrupt reinstatement of the untouchable Maina by the untouchables regionai lords in the presidency. Ibe Kaichukwu, probably has committrd some corrupt infractions hence he is willing to acceot to take directives from Baru. Lest i forget, is he going to represent the regional appointments made by Baru orr he is still naive about what are appointment, just like he is said not to know what is contract and its procurement processes. He should be bold and accept tbe humilation by the regional lords

    • Tola

      Unfortunately the joke is on you as this has demonstrated that you either only read headlines and/or you can’t understand what you read. Go back and read Kachikwu’s memo and NNPC response and come back to read what you have written. NNPC said ‘the AKK contract that requires FEC approval has not reached the stage of contract award’. Before you insult other groups, make sure you are not ridiculing yourself.

  • Taofeek

    APC magic.
    Shameless liars!

  • Musty

    The so called buhari integrity myth has been completely torn to shreds within two years. Same goes for ‘PYO’!
    LWKMD!!!!!

  • Ifeanyi

    If this is not an admission of corruption then what is it? Meanwhile, Baru is not currently in EFCC’s custody.

  • man

    so they don cover up everything. baru no go go to senate again. forgotten

  • Moneyz N Horseyz

    This is reverse engineering the entire process to cover up the abuse of due process. VP Osinbajo’s hypocrisy and dishonesty stink to high heavens.

  • Musdada

    This Minister is very efficient.

  • STAND OUT

    Is not following due process in contract award and missing/stollen money the same? Until this is understood, we will not be able to make sense of these whole thing.

  • Tola

    Let people go back and read NNPC clarifications. Seems people only read headlines. NNPC in her response stated that apart from the AKK project and the NPDC service contracts all other transactions were not procurement contracts. They also went further by saying ‘the AKK contract that requires FEC approval has not reached the stage of contract award’ So does this not validate the claim that it had not reached contract award stage then? If you have access to internet why can’t you crosscheck before making ridiculous comments.

    • esio

      More explanation after all these lies. It doesn’t matter how many times or how it is twisted, a lie remains a lie!
      Buhari Government don fall people’s hand!
      All these mess and many undisclosed undercover stealing done, ongoing and being planned by a government in power is too weighty.
      Who on earth will trust or believe this Government? Truly sad!

      • Tola

        What is a lie now? Is it a lie that the AKK project has not reached contract award stage? Is it a lie that the crude lifting allocation is not a procurement contract? Is it a lie that the JV financing contract was approved by the acting President? Where is the lie? Or you are talking of crass ignorance!

        • esio

          Tola, a proposal remains a proposal (internal) and a contract as stipulated by BPP rules and regulations has a procedure which your demi-god has violated using maru and co.
          You can try severally to confuse us or convince the gullible ones.
          Fact is that your principals have lied and have proven themselves to be habitual in lying.
          Nigerians beware!

          • Tola

            Do you read at all? Or you are programmed to just write something. If you don’t understand what is at stake can’t you seek clarification? Facts are sacred, opinion is free. You can express any opinion, it distinguishes between an intelligent person and a mediocre.

          • Isaac Azor

            You’ve just said it.

          • Hamlet

            Yoruba youth have all of a sudden developed twisted brains in the defense of Buhari magics

          • Tola

            Youth? Twisted brains? I guess straight brain is for those who cannot read but dabble into issues beyond their comprehension.

          • whereto

            They are mischievous Jona supporters. Facts are the last thing they are interested in.

  • Mr Integrity

    Meaning that Kachikwu was wrong

  • Dan maikoko

    If the contract was illegal then kachikwu should not champion the same illegality he opposes. But the contract was not illegal, kachikwu has issues with the way it was awarded and now now he is re-awarding it properly. what is the fuss all about premiumtimes?