How Baru Awarded $25bn Contract Without Approval
Facts have emerged how the Group Managing Director of the Nigeria National Petroleum Corporation, Dr Maikanti Baru awarded $25 billion contacts without approval.
This was part of the revelations in a petition written to President Muhammadu Buhari by the Minister of State for Petroleum, Dr Ibe Kachikwu.
The minister had alleged Baru of insubordination, calling on the president to intervene before the oil sector is grounded.
According to Kachikwu, any contract above $20 million is subject to review by the board of committee inaugurated by the president himself but Baru had sidelined the board from reviewing the contract before awarding it.
The contracts awarded include the AKK pipeline contract, valued at about $3bn, various financing allocation funding contracts with the NOCs, valued at over $3bn, the Crude Term contracts, valued at over $10bn; the DSDP contracts, valued at over $5bn and various NPDC production service contracts, valued at over $3bn to $4bn.
He stated that in the last one year of Baru’s tenure, no single contract had passed through the board, adding that this is against the legal and procedural steps for the award of contracts.
‘‘As in many cases of things that happen in NNPC these days, I learn of transactions only through publications in the media,’’ Kachikwu said.