On August 30, 2017, Minister of State for Petroleum Resources(MSPR), Dr Emmanuel Ibe Kachikwu, reported NNPC GMD, Maikanti Baru, to President Muhammadu Buhari through a memo.
That memo was leaked last week.
In
it, Kachikwu accused Baru of humiliating and disrespecting him; and not
following due process in the award of contracts at the NNPC.
Kachikwu also accused Baru of complicity in the disappearance of some $25B (N9TR) in crude oil earnings.
We waited all of last week for Baru to respond. Let’s just say we waited in vain.
However,
President Buhari separately met both men last week and issued a
directive to Baru to respond to the allegations levelled by his 'junior'
Minister.
The NNPC has just issued a response through its Group General Manager, Group Public Affairs Division, Ndu Ughamadu.
We reproduce seven talking points from that press statement below.
Look away now, Kachikwu:
1. Baru is only responding because Buhari asked him to.
After the memo was leaked to the press, Baru declined comments wherever he showed up.
However, in responding now, he makes it clear he’s only doing so because the president required a response from him.
Here’s the opening paragraph from the statement that makes that clear:
“Following
the publication of alleged lack of adherence to due process in the
award of NNPC contracts, the President ordered the Group Managing
Director (GMD) and Management of the Nigerian National Petroleum
Corporation (NNPC) to consider and respond expeditiously to the
allegations”.
2. Baru says Kachikwu shouldn’t complain if he isn’t carried along in award of contracts.
One of Kachikwu’s allegations against Baru was that the NNPC GMD awarded contracts without carrying him along.
Baru says the law doesn’t say Kachikwu has to be carried along.
“It
is important to note from the outset that the law and the rules do not
require a review or discussion with the Minister of State or the NNPC
Board on contractual matters.
"What
is required is the processing and approval of contracts by the NNPC
Tenders Board, the President in his executive capacity or as Minister of
Petroleum, or the Federal Executive Council (FEC), as the case may be.
“There
are therefore situations where all that is required is the approval of
the NNPC Tenders Board while, in other cases, based on the threshold,
the award must be submitted for presidential approval. Likewise, in some
instances it is FEC approval that is required”.
Implication
of what you just read: As long as Buhari, who is Minister of Petroleum,
has been informed, the show can go on. Kachikwu should consider himself
lucky if he's even informed.
Sorry, Kach, but that’s exactly what Baru is saying.
3. Baru says Kachikwu got his math wrong.
According to this statement, Kachikwu was throwing figures for contracts that hadn’t even been awarded.
“It
should be noted that for both the Crude Term Contract and the Direct
Sale and Direct Purchase (DSDP) agreements, there are no specific values
attached to each transaction to warrant the values of $10billion and
$5billion respectively placed on them in the claim of Dr. Kachikwu.
“It
is therefore inappropriate to attach arbitrary values to the shortlists
with the aim of classifying the transactions as contracts above NNPC
Tenders Board limit. They are merely the shortlisting of prospective
off-takers of crude oil and suppliers of petroleum products under agreed
terms”.
4. The money from crude oil lifting goes straight to the federation account, Baru says.
Here’s from the statement:
“These transactions were not required to be presented as contracts to
the Board of NNPC and, of course, the monetary value of any crude oil
eventually lifted by any of the companies goes straight into the
federation account and not to the company”.
5. NNPC GMD calls Kachikwu an unfortunate somebody.
Not our words. Read this:
“Furthermore,
contrary to the assertion of Dr. Kachikwu that he was never involved in
the 2017/2018 contracting process for the Crude Oil Term Contracts, Dr.
Kachikwu was in fact expressly consulted by the GMD and his
recommendations were taken into account in following through the laid
down procedure. Thus, for him to turn around and claim that “…these major contracts were never reviewed or discussed with me…” is most unfortunate to say the least”.
Oh boy!
6. Baru says Kachikwu’s allegations were baseless.
Hear the man:
“From the foregoing, the allegations were baseless and due process has been followed in the various activities”.
7. Baru says Kachikwu is mischievous.
Again, we return to the statement as we close this:
“The
NPDC production service contracts have undergone due process, while the
AKK (Ajaokuta-Kaduna-Kano) contract that requires FEC approval has not
reached the stage of contract award”.
In other words, ‘what’s Kachikwu even bitching about?’
“It
is therefore mischievous to classify Direct Sale Direct Purchase (DSDP)
Contract- valued at over $5bn as contract and attach a value to it that
is above Management’s limit”.
Messy fight this? You bet!

Kachikwu and President Buhari (signalng)
NNPC GMD Baru (The Guardian NG)
Kachikwu during an international meeting (Reuters/Leonhard Foeger)
Kachikwu is minister of State for petroleum resources
Dr Emmanuel Ibe Kachikwu isn't finding it funny (Premium Times)
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