The Kachikwu–Baru Management Crisis

It transpired, recently, that an official memorandum by Dr. Ibe Kachikwu, minister of state for Petroleum Resources, to President Muhammadu Buhari, who is also the substantive minister of Petroleum Resources, was leaked to the public. Whoever leaked the memo is not of interest to this writer because, if the author of the memo, the minister of state for Petroleum Resources, was denied access to his boss for several weeks by some overweening presidential aides, the question as to who leaked the memo could be answered by a pupil in the primary school!

In the said memo, dated August 30, 2017, Dr. Kachikwu accused Dr. Maikanti Baru, the group managing director of the Nigerian National Petroleum Corporation (GMD, NNPC), of insubordination and, principally, of unilaterally awarding contracts valued at about $25 billion, and that the contract awards were done without the due process of the law and were patently ultra vires the GMD, NNPC’s office.

Since its establishment about four decades ago, the NNPC has wriggled in a cesspool of rank corruption, malfeasance and misfeasance. It is the very epitome of the worst form of corporate sludge. Like the emoluments of Nigeria’s lawmakers, the mode of the business and earnings of the corporation remain shrouded in mystery. Nigerians do not know how much crude oil is mined from the womb of the Niger Delta every day; neither do they know how much is realised from the sale of exported petroleum products on a daily basis. This explains why any revelation of graft in that corporation attracts the attention of not a few Nigerians.


Kachikwu has alleged that Baru had unilaterally awarded contracts worth more than $25 billion, knowing full well that any contract valued below $20 million should be handled by the NNPC Tenders Board or, if above $20 million, should be referred, with a “No Objection Certificate” from the Bureau of Public Procurement (BPP), to the Federal Executive Council (FEC). The NNPC is a unique corporation whose Board of Directors, in spite of the unambiguous provision in the instrument establishing it, is precluded from the affairs of the cash cow of the nation-space. Dr. Kachikwu’s memo nearly fully removed the lid from the sealed can of the legendary graft in the NNPC. The law establishing the NNPC is the Nigerian National Petroleum Corporation Act (Cap. 320, Laws of the Federation of Nigeria, 1990). Section 1 (2) thereof provides inter alia, as follows: “The affairs of the Corporation shall, subject to Part II of this Act, be conducted by a Board of Directors of the Corporation which shall consist of a Chairman and the following other members…” Being the Chairman of the NNPC Board of directors, Dr. Kachikwu wonders, in the said memo, why he was not privy to the alleged contract awards. Being a first-class brain in Law, he must have wondered why some nondescript “Circulars” from the Secretary to the Government of the Federation (SGF) or some such other eerie official directives should take pride of place over the enabling Law of the NNPC, which has not been amended.

In what appears to be Baru’s response to a query from the Presidency, Mr. Ndu Ughamadu, the group general manager, Group Public Affairs Division of the NNPC, on behalf of his boss, the GMD, NNPC, stated, inter alia, 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.” That makes the Minister of State in the Petroleum Resources Ministry and Chairman of the NNPC Board worse than a spare tyre, a lame-duck minister/board chairman. “What is required,” according to Ughamadu, “is the processing and approval of contracts by the NNPC Tenders Board, the President in his executive capacity or as Minister of Petroleum Resources, or the Federal Executive Council (FEC), as the case may be…” Question: if the Minister of Petroleum Resources (PMB) has something to do with the “processing and approval of contracts,” why shouldn’t the spare tyre minister assume the position of the minister in his absence? Mr. Ughamadu then continued, “for both the Crude Term Contract and the Direct Sale and Purchase (DSDP) agreements, there are no specific values attached to each transaction to warrant the values of $10 billion and $5 billion respectively placed on them in the claim of Dr. Kachikwu….” (underlining mine).

Ughamadu glibly labels transactions amounting to $15 billion as “off-takers of crude oil and suppliers of petroleum products under agreed terms,” whatever that means! The question which arises from this imperspicuous term is, considering that the NNPC Board is a bull-dog without a mouth let alone a tooth, which institution(s) or individuals lend their imprimatur to such transactions and terms (as in DSDP) involving billions of dollars? What is the meaning of “Crude Term Contract and the Direct Sale and Purchase agreements” as used by Ughamadu in his response to his boss’s query? Couldn’t this be a corporate stratagem to avoid the NNPC Tenders Board, the NNPC Board, the FEC and the contracts over $20 million rule? Why should Mr. Ughamadu state that Dr. Kachikwu should not attach “specific values” to contracts valued at a colossal sum of $15 billion because they are classified as “off-takers of crude oil and suppliers of petroleum products under agreed terms”? Both Dr. Baru and Mr. Ughamadu have to enlighten Nigerians on the signification of this phrase, which sounds like a cryptic drain-pipe through which undisclosed crude oil, whose quantity and value are never officially disclosed, finds its way into the effluent channel! How do you transact any business without attaching monetary value to it?


We appeal to the Federal Government (not any of the chambers of the National Assembly) to institute a powerful investigative panel to look into the issues raised in Kachikwu’s memo to the President and the plethora of questions thrown up by Ughamadu’s reaction thereto. The panel should establish the truth or otherwise of Ughamadu’s claim that many contracts beyond the competence of the NNPC Tenders Board (NTB) were sent to the President for his approval, and find out whether the President, in his capacity as President or as the substantive minister of Petroleum Resources, is competent to approve any contract valued at more than $20 million. The panel should also painstakingly examine and review the various “circulars” and other official directives governing the operations of the NNPC against the background of the Act establishing the corporation, the NNPC Act.

Meanwhile, the position of the emasculated NNPC Board vis-à-vis the sweeping powers of the NTB must be carefully looked into and reviewed. Above all, the Petroleum Industry Bill (PIB), in its original form, which seeks to introduce a clear and transparent regulatory framework into the corporation, should be enacted into law with efficient speed.




Source: The Guardian

Kachikwu-Baru: In Search Of A Truce

By Nation Newspaper

On Tuesday, Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu and Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Kacalla Baru met at the 23rd Nigerian Economic Summit in Abuja. The duo plumped hands, smiled together and almost hugged like excited friends who had not seen for some time. Photographers clicked away and it was no surprise that almost all newspapers in the country yesterday had both men on their front pages.

Was that the first time the duo would meet at events and were photographed together? Certainly not! But what made them candidates for the front pages is the row between them over the running of the NNPC. Kachikwu, who is the chairman of the board, feels left out. Baru thinks Kachikwu is being dramatic and showing signs of not understanding the workings of an agency he once oversaw.

In response to six posers raised by Kachikwu’s loyalists, the NNPC yesterday released a fact-sheet claiming that the minister nominated seven firms for contracts, among others.

For stakeholders in the industry, the time to end the feud over allegations of insubordination and lack of adherence to due process by Baru in the execution of activities in the ministry is now.

The stakeholders had divergent views on whether Kachikwu or Baru is right or wrong. Not a few agreed that the conflict calls for speedy passage of the Petroleum Industry Bill (PIB), which, they say, contains solutions to the gaps in the NNPC Act. The NNPC Act, according to them, has several gaps that make actions of Baru right and the grouses right, especially as the President doubles as the substantive Petroleum Resources Minister, making Kachikwu and Baru to report directly to the President.

To them, in absence, the PIB, the NNPC Act should be reviewed with roles, actions, and lines of report properly stated and streamlined.

Nigerian Association of Petroleum Explorationists (NAPE), President Abiodun Adesanya said Kachikwu and Baru have done well in the oil and gas sector with very tangible achievements to show for it and should not allow political issues destroy these good deeds.

He said: “What is happening between the minister and NNPC chief is an administrative issue and as both of them report to the President, it is important that the President call them and resolve the issues amicably. This will make them accomplish ongoing and planned good works in exploration and other areas of the sector.”

“First and foremost, two of them have done very well as human beings. Chemistry of working together between two people sometimes cannot be as expected. But there must be sincerity and alignment with the aspirations and programs of the government of the day regardless of their views. If you are called to serve, you align your thoughts to work with the government’s objective.”

“The cardinal goal of this government is anti-corruption. Therefore, all your dealings must align with this objective. All the accusations are in this case are about not following due process and procedures. Nobody has said someone is corrupt.”

“Kachikwu has made a substantial progress in reducing the Niger Delta issues. The nation’s oil production is stable now with the attendant revenue increase for the government. He has resolved the persistent problem with the Joint Venture cash calls. He has also helped to influence the extension of exemption of Nigeria from the production cap by the Organisation of Petroleum Exporting Countries (OPEC).”

“Baru has also ensured unhindered petroleum products supply. Nigerians don’t queue to buy fuel anymore. There has been stability in the downstream subsector with a positive impact on the economy. Exploration efforts in the frontier basins especially those in the north are now being professionally and purposefully pursued.”

“If we are making progress in all these, and if someone is perceived to jump procedure, it has to be carefully handled. The issues raised in the conflict are administrative issues under the President and he can manage it.”

“There is need to look at the NNPC Act well, so this kind of issue doesn’t arise again. If the Act provides that the NNPC on one hand, reports to the Minister of Petroleum Resources and on the other, the President and a case arises where the President is the Minister of Petroleum Resources, the situation should be reviewed and roles streamlined.”

“Governing Board is part of NNPC, so management and board should be on the same page. This can be amicably resolved. On how the NNPC carries out its duties can also be streamlined. The National Assembly is looking into that, to streamlines roles and lines of reporting.”

“This issue brings to the fore the issue of passage of the Petroleum Industry Bill (PIB). PIB has the solution to this problem and it becomes surprising why the House Representatives is sitting on the Bill while the Senate is giving it speedy treatment.”

“Let us not allow political issues to destroy the good deeds achieved in the sector. The President should call Kachikwu and Baru, resolve the issue amicably and ensure such issues are treated and resolved internally and kept away from public consumption in future.”

For the Lead Director, Centre for Social Justice (CSJ), Mr. Eze Onyekpere, the issue calls for a need to speedily and totally pass the Petroleum Industry Bill (PIB) into law. He said the managers of Nigeria’s oil and gas resources should be more concerned with maximizing value from the resources for the benefits of Nigerians especially as oil and gas are being threatened by the shift to use renewable energies.

Onyekpere said he was yet to see any company law that doesn’t present its activities to the board before implementation, adding that the issue is test case for the reforms for the sector.

“The situation presents a water-tight case for the enactment of the Petroleum Industry Bill (PIB) because the world is not waiting for Nigeria. The nation is currently facing the challenges posed by the increasing production and the choice for renewable energy worldwide.”

“The world is moving away from the use of fossil fuels and we should be concerned as a nation what to do with the hydrocarbon resources we have before it becomes totally useless. The world is leaving Nigeria behind.”

“The allegations against the Nigerian National Petroleum Corporation (NNPC) are critical because they border on lack of transparency and lack of due process and should be taken seriously irrespective of who is involved.”

“I want to look at the company law that says a company doesn’t report its activities to the board. It is nonsensical to classify firms that lift crude oil as off-takers. Also at what point did the NNPC present the report to the Federal Executive Council (FEC), and who presented the report to FEC when the Minister of Petroleum was not aware? Is it the President the presented it to FEC or was it the Vice President when the President was away?”

“What is happening is an aberration and a watertight case for reforms for the oil and gas sector that is the mainstay of the country.”

“On the proposed suspension of the Minister of State for Petroleum Resources and the Group Managing Director of NNPC by the Senate to enable the upper legislative chamber carry out its probe into the allegations against the NNPC without difficulty, Onyekpere said the suspension should be for the person that ran contrary to the law and due process.”

Lonadek Oil and Gas Limited Principal Consultant, Dr. Lola Amao said: “Corruption allegations would continue in Nigeria until anti-corruption systems, processes, and procedures are incorporated into governance. I am yet to see any NNPC leader who has not been implicated, caught or accused of being a suspect.”

“The institution was neither established to benefit the masses nor be transparent. I am not sure that Minister, Minister of State, and the Group Managing Director can discharge their duties as innocently as they would want to without being implicated in one process, incident, agreement, transaction, contract or another, among others.”

“The sooner we make NNPC a public company for the benefit of all Nigerians and have Incorporated Joint Ventures (IJVs) source for funding based on Return on Investment (RoI), the better for Nigeria. I hope this case highlights the need for NNPC to go public (privatized).”

Another stakeholder, who pleaded anonymity, said: “What is happening between the Ministry of Petroleum Resources and the NNPC is political. The battle for the life of Nigeria in 2019 has just started in NNPC Towers.”

“Nigerians should be on the alert and watch events unfold. They will recognize the cabal and characters of the soap opera.”

“NNPC needs to be privatized so the corporation will be subject to Nigerians and not Nigerians subject to NNPC.”

My Concern Over The Current Debate On Ibe Kachikwu’s Letter To The President, By Tanko Yakasai

Having been associated with the corridor of power both at the state and federal level in Nigeria, I doubt if the President is such a docile person as to allow his subordinates to manipulate his office the way our media made us to believe. To adjudge an official for corruption, justice demands proof or evidence. Islam enjoins Moslems always to be just. In this regard, I would like to comment on the ongoing discussion on the letter the Minister of state sent to the President complaining of being side-lined by the NNPC GMD, INSUBORDINATION, and contract award without channelling such awards through him as chairman of the NNPC board. My understanding of the issue is that, it is unimaginable to assume such a leak can happen without the knowledge or even consent of the Minister of State or anybody who is the author of such a document.


From the content of the Minister’s letter, it contained series of grievances which appeared to have accumulated. It is a common knowledge that the President has been away for over three months, common sense dictates that such accumulated differences should have been conveyed to the Acting President during the absence of the President.


As I have said earlier, I am familiar with the happenings at the highest level of governance, both when I was a member of my state executive council for eight years and at national level as a Special Assistant to the President for four years. I know for sure that critical communications at the higher level are not normally done through a third party to avoid leakage of information. In view of that, Dr.IbeKachikwu’s letter must have been delivered to the President himself thereby eliminating the possibility of a third party knowing the content of such communication.


A leakage in this regard can only come from either Dr.Kachikwu or the President himself. Common sense dictates that the President will not leak such communication to the public particularly as it was carried by almost all the print media immediately after the letter was submitted to the President.


My feeling is that the leakage of the letter is simply made to embarrass the President and create an impression that he is not serious about following due process.


Another point is that some four years ago when I was serving in the Political Thematic group of Vison 202020, I could recall that late Dr. Ibrahim Tahir, raised an issue on the Public Procurement Act of 2007, enacted during the tenure of President Obasanjo, which he felt very strongly about.  Ibrahim Tahir’s strong feeling rose from alienation of the Ministers and the Board of Federal Government Parastatals in the award of contract. His argument is that under the present system, the President, Governor and the Local Government Chairman are the only people mandated by the electorate to serve as Chief Executive Officers of the tier of government they are heading. The constitution, however, empowered them to delegate some of their powers to their subordinates including Ministers and Board of Parastatals. Dr. Tahir felt that it was odd for the Minister and the Board of parastatals not to have a role in matters pertaining award of contracts. Members of that thematic group can testify how vigorously Dr. Tahir tried to converse support to recommend changes in this regard but without success.


To this extent the question of the NNPC GMD side-lining the Minister of State has no justification having regard to the provision of  PPA act of 2006 in PART V — ORGANISATION OF PROCUREMENTS under Accounting officer which states that “


  1. (1) The accounting officer of a procuring entity shall be the person charged with line supervision of the conduct of all procurement processes; in the case of ministries the Permanent Secretary and in the case of extra-ministerial departments and corporations the Director-General or officer of co-ordinate responsibility.


(2) The accounting officer of every procuring entity shall have overall


responsibility for the planning of, organization of tenders, evaluation of tenders and execution of all procurements and in particular shall be responsible for:


(a) ensuring compliance with the provisions of this Act by his entity and liable in person for the breach or contravention of this Act or any regulation made hereunder whether or not the act or omission was carried out by him personally or any of his subordinates and it shall not be material that he had delegated any function duty or power to any person or group of persons;


22.—(1) There is hereby established by this Act in each procuring entity a


tenders board (in this Act referred to as “the Tenders Board”).


(2) Subject to the approval of the Council, the Bureau shall, from time to time,


prescribe guidelines for the membership of the Tenders Board.


(3) The Tenders Board shall be responsible for the award of procurements of


goods, works and services within the threshold set in the regulations.


In view of the foregoing, it is clear that the PPA of 2007 does not confer any responsibility on the Ministers and Board of Parastatals on matters pertaining to public procurement.  I am, however, aware that for some time Ministers and members of Board of Parastatals are grumbling over their exclusion in the process of public procurement and award of contract.


On matters of insubordination, the Minister of State’s letter did not give sufficient details to enable an informed judgement by anyone on this matter. According to the Public Service Rules, any case of insubordination should be immediately reported for appropriate action. There is no indication where the Minister has reported the insubordination of the GMD of NNPC to the appropriate quarters.


I am getting concerned at the current trend in Nigeria where a whistle blower is automatically regarded as telling the truth without investigation. I saw this in the case of a member who accused Speaker and members of house of representatives of budget padding and the media did not subject his allegation to proper scrutiny.


For Nigerians to get it right, the practice whereby the accused is automatically presumed guilty is not in consonance with the principle of that the accused is presumed innocent until proven guilty.

NNPC’s Claims On Approval Of Contract False – Kachikwu Associates

Nigerian National Petroleum Corporation, claims NNPC’s Tenders Board is the only legal body to approve contracts and not the Board is false.

Dr. Ibe Kachikwu, the associates of the Minister of State of Petroleum, stated this in a fact-sheet available to The Nation on Wednesday.

The fact-sheet was in response to NNPC’s Monday statement, which described Kachikwu as a “liar” with his August 30 memo to President.

Kachikwu wrote to President Muhammadu Buhari, alleging that NNPC’S Group Managing Director, Maikanti Baru

  • awarded $25billion contracts unilaterally;
  • ran a “bravado” management; and
  • made appointments without consultations.

Baru denied it all. He said no money was involved in the contracts and that the NNPC Tenders Board had no business reporting to Kachikwu and the corporation’s Board. The Presidency backed his position.

The fact-sheet, however, said: “Baru’s claim that the NNPC Tenders’ Board, not the NNPC Board, is the right body to approve such contracts in question is also false. According to Public Procurement Act’s Section below:

S.20. (1) The accounting officer of a procuring entity shall be the person charged with line supervision of the conduct of all procurement processes; in the case of ministries the Permanent Secretary and in the case of extra-ministerial departments and corporations the Director-General or officer of co-ordinate responsibility.

(2) The accounting officer of every procuring entity shall have overall responsibility for the planning of, an organization of tenders, evaluation of tenders and execution of all procurements and in particular shall be responsible for.”

“Apart from the GMD as the appointor of the Tenders’ Board, which he also chairs, his duty is pure to plan, organise, evaluate, execute and supervise the conduct of ‘procurement processes’ and not to approve contracts above his threshold under the seal of the Corporation.

“He cannot plan, organise, evaluate, execute procurement process, approve and execute approved projects. He lacks the statutory capacity to be the sole determinant of due process in the corporation.

“But after the approval by the NNPC Board, President or FEC, it is worthy of note that the Tenders’ Board, according to Public Procurement Act in Section 22 (3), ‘shall be responsible for the award of procurement of goods, works and services within the threshold set in the regulations.”

“Under the seal of the NNPC Board, according to the First Schedule, Part A, Sections 11, 12 and 13 of the NNPC Act which says:

“11. The fixing of the seal of the Corporation shall be authenticated by the signature of the Chairman and any other person authorized in that behalf by the Board.

  1. Any contract or instrument, which is made or executed by any person not being a body corporate would not be required to be under seal, may be made or executed on behalf of the Corporation by any person generally or specially authorised to act for that purpose by the Board.
  2. Any document purporting to be a contract, instrument or other documents duly signed or sealed on behalf of the Corporation shall be received in evidence and, unless the contrary is proved, be presumed without further proof to have been so signed and sealed.”

The Pregnant Kachikwu-Baru Affair

What we feared most about the Buhari presidency – lack of internal cohesion – is what is happening to the respected General who was elected in 2015 on the crest of his ethical strength to deal with official corruption, Nigeria’s major blight.

That is the sad denouement of last week’s leaked scandalous story about the country’s notorious oil corporation. Specifically, a letter, which Minister of State for Petroleum Resources, Dr. Ibe Kachikwu wrote to the President in August on alleged impropriety in contract awards in Nigerian National Petroleum Corporation (NNPC), was curiously leaked to the press. Its contents not to mention the subtle insinuations were indeed damning to the presidency and the image of the corruption-fighting stance of the administration. Nearly one week after the letter was leaked to the public, there has been no official word from the presidency beyond the president’s routine meetings with the two men at the centre of the story. After the reported meetings, no statement was issued. This is an insult to the expectant people. What exactly is going on? What did the President think of the allegations? Why was there no explanation to the people about why a serving minister could not see the President who is the substantive head of the oil ministry? It is either the government holds the people in utter contempt or is simply insensitive. And that stance smacks of arrogance of power in a strange democracy!

The Petroleum Ministry is charged with overseeing the NNPC and its allied agencies, among other concerns in the oil and gas sector. As supervisor of the mainstay of the Nigerian economy, the business and conduct of the officials of the ministry are always in the public eye. Humungous sums of money usually pass through the state oil firms. Hundred of billions of naira both from oil sales and other sources accrue to the nation through these transactions according to laid down rules. In any case, these extant rules have never been clear to the public, as stories of alleged revenue leakage from the oil firms have been curiously regular.

Besides, too many persons and officials in that sector have fallen into the cesspit of corruption through fraud and shenanigans. Some recent top officials in the sector are reportedly facing trials abroad. The affairs of the NNPC have always been shrouded in some secrecy. Nigeria Extractive Industries Transparency Initiative (NEITI) has repeatedly reported lack of transparency in NNPC. The stakes are therefore very high.

It is perhaps for this reason that the President Buhari’s decision to take charge (as Minister) in charge of the Ministry of Petroleum Resources in 2015 was not challenged. But sadly, this has not insulated the state oil corporation and oil ministry from corruption stories.

Now at issue is the relationship between the Minister and the GMD of the NNPC in terms of appointments, taking decisions and implementing same without the authority of the NNPC Board chaired by the Minister of State. A background to the crisis was the reported frosty personal relationship between the minister and the GMD of the NNPC.

In the beginning of appointments, which President Buhari ordered, Kachikwu as GMD was made boss to Baru; the latter was then sent to the Ministry on a desk assignment, a position which some considered as punitive. When later in a re-organisation, Kachikwu was elevated as Minister of State and Baru returned as GMD, the latter seemed to have decided to operate without recourse to the minister. The only difference was that officially, Kachikwu is senior to Baru. Or so it seemed. Whatever the reasons for their unhealthy relationship, it has not served the nation well. The differences between two officials should not have been allowed to be a source of embarrassment as it has been.

In the leaked letter, Kachikwu reportedly complained that high-level appointments in the corporation were made without his or the input of the NNPC Board. He also complained that policy moves, which would have transformed the sector are being hampered by the incumbent GMD. His words conveyed deep angst, with such references to ‘insubordination’ and ‘humiliation’ in the course of serving the nation. In summary, the former Vice President of Exxon Mobil, West Africa, accused the current GMD of a misdemeanour and therefore called on the President to call him to order.

There are many questions, in this regard. But can it be true that a serving Minister of State for Petroleum Resources has not had access to the President since August this year when the letter was written? What then is the colour of the administrative machinery of the presidency, coordinated by the Chief of Staff to the President? Is the Chief of Staff mischievous or incompetent or both? This has exposed a failure of coordination in the presidency that has been made weaker since April this year when the Secretary to the Government of the Federation has suspended again on an allegation of corruption. Is it possible that some other ministers too may have been quietly enduring this travesty in administrative procedures?

But by far the most damning element in Kachikwu’s letter is the alleged approval of a whopping $25 billion for sundry contracts without the consent or knowledge of the minister who is also the chairman of the Board of NNPC. What exactly is the true state of things Mr President? Has any rule or law been broken? Is there really a fifth column working behind the scenes to sabotage the efforts of the President? Will the government sweep this matter under the carpet? The NNPC’s explanations through press statement yesterday were insensitive and insulting. The president, who doubles as the minister of petroleum resources, should put his house of commotion in order and address the serious allegations.

The Nigerian people need to know. Transparency should be the keyword. The government should not simply remain silent and hope that the matter would go away. If there has been any infraction, appropriate sanctions should be invoked. The government should make a statement to clear the air. The NNPC Board should be allowed to function to guarantee due process. The process of consultations between cabinet members and the President should not be left to the discretion of the Chief of Staff who from all indications is an interested party; he is quite curiously a member of the NNPC board. The proposed reforms in the NNPC should, therefore, be allowed to continue. The overall interest of the nation should be the basic concern of the government on this pregnant affair.

Remarkably, current holders of power should realise that they are responsible to the Nigerian people. If they do not give account now because of official protection, someday they will be held accountable. Certainly, officials in the last administration did not envisage the current audit that has allegedly exposed massive looting of funds. The buck stops at the table of the President who has received some plaudits on fighting official corruption.

Finally, the President should restore public confidence in the operations of the NNPC. Kachikwu should not be bullied into silence. Having rightly cried wolf over perceived disregard for due process, he must not acquiesce like the typical Nigerian if things do not change. All stakeholders should keep the government on its toes until a proper and satisfactory explanation is provided on the activities of the NNPC and how its operations can be made transparent to serve the needs of the people.




Source: The Guardian

NNPC GMD, Baru Replies Kachikwu, Says Minister’s Claims Were ‘Unfortunate’

The Group Managing Director of the Nigerian National Petroleum Corporation, Maikanti Baru, has finally responded to allegations of corruption and violation of contract laws raised by the Minister of State for Petroleum, Ibeh Kachikwu.

Kachikwu’s letter to President Muhammadu Buhari was leaked last week to media detailing several allegations of Mr. Baru’s insubordination and unilateral award of contracts in NNPC totaling about N9 trillion without following due process.

Mr. Kachikwu met with President Buhari on Friday, but despite the weight of the allegations, no government official reacted publicly until now.

Read Mr. Baru’s statement released on Monday:



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.

The substance of the allegations made by the Minister of State for Petroleum Resources, in a letter to the President dated 30th of August 2017, is that a number of “major contracts were never reviewed or discussed with me (sic) the NNPC Board.”

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.

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. 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.

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.


The contracting process in NNPC is governed by the following:

  1. Provisions of the NNPC Act
  2. The Public Procurement Act, 2007 (PPA)

iii. Procurement method and thresholds of application and the composition of Tenders Board as
provided by the Secretary to the Government of the Federation (SGF) Circular reference no.
SGF/OP/1/S.3/VIII/57, dated 11th March, 2009.

  1. NNPC Delegation of Authority Guide
  2. Supply Chain Management Policy & Procedure documents
  3. NNPC Ethics Guide

Approving Authority for Contracts

The SGF Circular (iii above) on procurement threshold provided the following authority limits for NNPC transactions as well as the composition of the NNPC Tenders Board:

Table 1: Financial Authority Threshold (SGF Circular (iii) above)

Approving Authority/No Objection to Award Special Works (NNPC)
BPP issues  “No objection to award”/FEC approves N2.70 billion (USD 20M) and above
NNPC Tenders Board Up to N2.7 billion (USD20M)


Table 2: Composition of Tenders Board (SGF Circular (iii) above)

Ministry Chairman Permanent Secretary
Members Heads of Departments
Parastatals Chairman Chief Executive
Members Heads of Departments


NNPC had cause to clarify severally from Bureau of Public Procurement (BPP) as to the composition of NNPC Tenders Board and the role of NNPC Board appointed by Government. The following clarifications were made.
a. The BPP expressly clarified that NNPC Tenders Board (NTB) is NOT the same as NNPC Board. The governing board (NNPC Board) is responsible for approval of work programmes, corporate plans and budgets, while the NTB is responsible for approval of day-to-day procurement implementation.

  1. BPP referred to the SGF circular for the composition of the NTB to compose of the Accounting Officer (GMD NNPC) as the Chairman, with Heads of Department (GEDs) as members with the Head of procurement (GGM SCM) serving as the Secretary of the NNPC Tenders Board.
    The above clarifications of the provisions of the procurement process show that approvals reside within the NTB and where thresholds are exceeded, the NNPC refers to FEC for approval. Therefore, the NNPC Board has no role in contracts approval process as advised by BPP.

As can be seen, all these clarifications were sought and obtained prior to August, 2015 and were implemented by Dr. Kachikwu as the GMD of NNPC. Dr. Kachikwu also constituted the first NNPC Tenders Board on 8th September, 2015 and continued to chair it until his exit in June, 2016.

Typical NNPC Contracting Process

  1. Approval of project proposal and contracting strategy by NTB.
  2. Placement of adverts for expression of interest in electronic and print media.
  3. Soliciting for tender (Technical and Commercial)
  4. Tender evaluation
  5. Tender approval by NTB for contracts within its threshold; otherwise
  6. Obtain BPP certificate of no objection before presentation to FEC.
  7. Present to FEC for approval.

All Contracts in NNPC follow the above procedure.


  1. Crude Oil Term Contract (COTC)- valued at over $10bn

It is important to state that the COTC is not a contract for procurement of goods, works or services; rather it is simply a list of approved off-takers of Nigerian crude oil of all grades. This list does not carry any value, but simply state the terms and conditions for the lifting. It is therefore inappropriate to attach a value to it with the aim of classifying it as contract above Management limit.

In arriving at the off-takers list for 2017/2018 COTC, the following steps were followed:

  1. Adverts were placed in National and International print media on Monday, 17th October, 2016.
  2. The bids were publicly opened in the presence of all stakeholders (NIETI, DPR, BPP, Civil Society Organisations, NNPC SCM Division and the press as well as live broadcasts by the NTA and other TV stations).
  3. Detailed evaluation was carried out and the short list of the successful off-takers was presented to the approving authority (Mr. President) for consideration and approval.
  4. Thereafter, NNPC published the list of the successful off-takers in newspapers and NNPC’s official website.

This has been the standard procedure and it is the same process adopted during the 2016/2017 COTC when the HMSPR was the GMD.

In conclusion, due process has been fully followed in the shortlisting of the off-takers of the Nigerian crude oil for the current term 2017/2018.

  1. The Direct Sale Direct Purchase (DSDP) Contract- valued at over $5bn

Like the COTC, the DSDP is not a contract for any procurement of goods, works or services, rather it is simply a list of off-takers of crude oil and suppliers of petroleum products of equivalent value.

This list does not carry any value, but simply state the terms and conditions for the lifting and supply of petroleum products. It is therefore mischievous to classify it as contract and attach a value to it that is above Management’s limit.

In arriving at the off-takers list for 2017/2018 DSDP, the following steps were followed:

  1. a. Work plans and execution strategy for the DSDP was granted by the approving authority (Mr. President).
    b. Adverts were placed in National and International print media and NNPC website on Thursday, 22nd December, 2016.
    c. The bids were publicly opened in the presence of all stakeholders (NIETI, DPR, BPP, Civil Society Organisations, NNPC’s SCM Division and the press as well as live broadcast by the NTA and some TV stations).
    d. Detailed evaluation was carried out and the short list of the successful off-takers was presented to the approving authority (Mr. President) for consideration and approval.
    This has been the standard procedure and it is the same process adopted during the 2016/2017 DSDP when the HMSPR was the GMD.

In conclusion, it has been confirmed that due process has been followed in arriving at the shortlist of the DSDP partners for the 2017/2018 cycle.

  1. The Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Contract

The AKK Gas pipeline project is a contractor financed contract. The process adopted for this contract is as follows:

  1. Approval of project proposal and contracting strategy was given by NTB.
  2. Placement of adverts for expression of interest in some National and International print media and NNPC’s website.
  3. Expression of interest for pre-qualification received and evaluated.
  4. Technical and Commercial tenders issued and evaluated
  5. NTB considered and endorsed tender evaluation result for FEC approval since this contract is above NTB’s threshold subject to obtaining the following certificates of no objections:
  6. BPP certificate of no objection (obtained).
  7. Certificate of no objection from Infrastructure Concession and Regulatory Commission (ICRC) (obtained).
  8. Certificate of no objection from Nigerian Content Monitoring & Development Board (NCMDB) (being awaited)

BPP and ICRC certificates have been obtained, while that of NCDMB is being awaited after which the contract will be presented to FEC for consideration and approval.

Thus, due process is being followed in the processing of this contract.

  1. Various Financing Arrangements Considered with IOCs;

The financing arrangements reported as contracts are part of the process of exiting Cash Call approved by the FEC. It entails negotiations with JV Partners on alternative funding of some selected projects through third party financing to bridge the funding gap associated with Federal Government’s inability to meet its cash call contributions.

The third party financing option emanates from the appropriation act provisions that allow sourcing of financing outside regular cash call contributions. Upon approval of the calendar year’s operating budget, the NNPC in conjunction with its JV partners commence the necessary process for accessing financing to bridge the funding gap.

Section 8 sub-sections (1) and (4) of the NNPC Act CAP N123 requires that all NNPC borrowings must be approved by Mr. President. Specifically, it provides that:

(1) Subject to the other provisions of this section, the Corporation may, from time to time, borrow by overdraft or otherwise howsoever such sums as it may require in the exercise of its functions under this Act.

(4) Where any sum required aforesaid –

  1. a) Is to be in currency other than Naira; and
  2. b) Is to be borrowed by the Corporation otherwise than temporarily,
  3. c) The Corporation shall not borrow the sum without the prior approval of the President.

Due Process:

  1. NAPIMS and JV partner identify bankable projects that require financing and sends to NNPC Corporate Finance to assist in procuring financing.
  2. Constitution of Joint Financing Team (JFT) between NNPC and the JV Partner.
  3. JFT NNPC invites Request For Proposals (RFPs) from Financial Institutions.
  4. Submitted RFPs are evaluated and beauty parade conducted to determine most cost-efficient proposal.
  5. Negotiated Financing Strategy, Term-sheets, Structures and pricing are presented for NNPC Management’s (NTB) approvals.
  6. NNPC presents the renegotiated terms for approval of Mr. President.
  7. NNPC executes the resultant Agreement.

Financings taken under this Administration: Approx. $3bn are as follows:

All established due process as enumerated above has been observed leading to the securing of financing for the following projects in 2016/2017:

·        1. ·         NNPC/CNL JV Project Cheetah 1,200.00 ·        16/04/15 ·         01/09/15 ·         Dr. E. I. Kachikwu
·        2. ·         NNPC/CNL JV Project Falcon 780.00 ·        26/04/17 ·         31/07/17 ·         Dr. M. K. Baru
·        3. ·         NNPC/SPDC JV Project Santolina 1,000.00 ·        26/04/17 ·         10/07/17 ·         Dr. M. K. Baru
· TOTAL 2,980.00 · · ·


These are not procurement projects as described by the PPA, 2007. However, all established due processes as enumerated above were followed.

The NPDC Integrity Upgrade and Development Projects

All the NPDC procurement contracts were subjected to the approved procurement procedures as described in respect of the AKK Gas Pipeline project above. There were no breaches of any extant procurement processes.

For the benefit of doubt, it is confirmed that there is no single NPDC contract that has been approved by the relevant Tenders Board beyond its limit of financial authority and there is no single contract that is in the $3Bn to $4Bn range claimed in the write-up.


From the foregoing, the allegations were baseless and due process has been followed in the various activities.

Furthermore, it is established that apart from the AKK project and NPDC production service contracts, all the other transactions mentioned were not procurement contracts. The NPDC production service contracts have undergone due process, while the AKK contract that requires FEC approval has not reached the stage of contract award.

Ndu Ughamadu
Group General Manager
Group Public Affairs Division,
NNPC, Abuja.
October 9, 2017.

NNPC Saga: Falana Advises Buhari To Resign As Petroleum Minister

A Lagos based lawyer, Mr. Femi Falana, has asked President Muhammadu Buhari to quit as petroleum minister to forestall clash of interest within the executive arm of government.

Mr. Buhari has held on to the position of petroleum minister but named Ibe Kachikwu as the Minster of State for Petroleum.

Mr. Falana’s call is coming after Mr. Kachikwu accused the Group Managing Director of the NNPC, Maikantu Baru, of violating due process in the award of $25 billion contract.

In a petition to President Muhammadu, which eventually leaked to the media, Mr. Kachikwu also accused Mr. Baru of insubordination.

In his statement on Sunday, Mr. Falana said it was better for Mr. Buhari to appoint someone else to supervise the ministry.

“Having regard to the enormous responsibilities of the office of the Minister of Petroleum Resources and Chairman of the NNPC Board President Buhari is advised to relinquish the ministerial position in view of his busy schedule and appoint another Nigerian of proven integrity and competence to superintend the affairs of the Ministry.

“If this advice is accepted in good faith and acted upon without any delay it would remove undue pressure on the health of the President and allow him to attend to urgent matters of the state,” he said.

Mr. Baru, who is yet to speak publicly on the matter, was also at the presidential villa where he met with Vice President Yemi Osinbajo.

Mr. Falana also, however, called for Mr. Baru’s suspension while calling for an investigation into the matter by relevant agencies including the anti-graft EFCC.

Read his full statement below:

“The people of Nigeria were surprised last week to read the embarrassing petition of the Minister of State in the Ministry of Petroleum Resources, Ibe Kachikwu, addressed to President Buhari pertaining to his inability to consult with the President and substantive Minister of Petroleum Resources and the unilateral award of $25 billion contracts by Mr. Maikanti Baru, the Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC). Although it was reported that Mr. Kachikwu has since been given access to the President the details of the discussions between the duo have been not been made public. However, apart from sanctioning the officers responsible for creating the wide gulf between Mr. Kachikwu and the President the allegation of the unilateral award of contracts worth $25 billion by Mr. Baru ought to be investigated in line with the anti-corruption policy of the Buhari administration.Read Mr. Falana’s full statement below.

In order to conduct a thorough investigation into the grave allegations of the reckless contravention of the provisions of the Public Procurement Act Mr. Baru should be placed on indefinite suspension while the presidency should refer the case to the Economic and Financial Crimes Commission. And once it is confirmed that the said $25 billion contracts were awarded without the approval of the NNPC Board they should be revoked while the recent appointment of the heads of the parastatals in the oil and gas industry should be reviewed in line with the Constitution and the Federal Character Commission Act.

Curiously, the presidency has demanded for the minutes of the meetings of the NNPC Board. This demand has confirmed that the meetings of the Board which are statutory required to be chaired by the Minister of Petroleum Resources have not been held as and when due. More importantly, the demand has corroborated that aspect of Mr. Kachikwu’s petition alleging that the powers of the Board have been usurped by Mr. Baru.

Therefore, the petition should provide an opportunity for the President to reorganise the NNPC with a view to ensuring that it is publicly owned in a manner that the Board is constituted by accredited representatives of the oil producing communities and credible civil society groups including the trade unions in the oil and gas industry.

Having regard to the enormous responsibilities of the office of the Minister of Petroleum Resources and Chairman of the NNPC Board President Buhari is advised to relinquish the ministerial position in view of his busy schedule and appoint another Nigerian of proven integrity and competence to superintend the affairs of the Ministry. If this advice is accepted in good faith and acted upon without any delay it would remove undue pressure on the health of the President and allow him to attend to urgent matters of the State.”

President Buhari In Closed Door Meeting With Kachikwu

President Muhammadu Buhari and the Minister of Petroleum Resources are currently meeting at the Presidential Villa, Abuja.

The Minister arrived at the Presidential Villa at about 11:34 am and proceeded straight to meet President Buhari in the office.

The meeting is coming barely few days after the leakage of Kachikwu’s written to the President accusing the NNPC Group Managing Director (GMD) of a sundry administrative misdemeanors that were capable of jeopardizing the administration’s policies aimed at repositioning the petroleum sector.

In the letter, dated August 30, Kachikwu had complained to the President over what he considers as insubordination by the NNPC boss.

A copy of the letter being circulated on the social media indicates that the minister is also unhappy with the manner recent changes in the NNPC were handled and accused Dr. Baru of humiliating the board.

Dated a day after the NNPC announced a massive shakeup which affected 55 management staff, the Minister said it was not the first time changes would be made without the Board’s input.

“It is in the spirit of service and absolute belief in your leadership and integrity that I have, after one year of tolerating these disrespectful and humiliating conducts by the GMD, decided to bring these to your attention,” the Minister wrote.

He called on the President to intervene and “save the office of the Minister of State from further humiliation and disrespect by compelling all parastatals to submit to oversight regulatory mandate and proper supervision” which he is supposed to manage on the President’s behalf.

He also called on President Buhari to “save the NNPC and the oil industry from collapse arising from the above non-transparent practices and empower the Board” to do the needful.

Read Minister Kachikwu’s Letter To President Buhari Over NNPC GMD Baru Insubordination And Scandalous Award Of Contracts

His Excellency, Muhammadu Buhari, GCFR

President and Commander-in-Chief of the Armed Forces

The Federal Republic of Nigeria

Presidential Villa Abuja


Your Excellency,



Let me start by welcoming you back to the country and by thanking God for your recovery from ill health. I join millions of Nigerians who rejoice and thank God for grating you the grace of healing and strength to continue the good work you have done for Nigeria in your long illustrious career in public service. I would have wanted to come personally after receiving you at the airport to facilitate with you and discuss matters herein contained, however, I have been unable to secure an appointment to see you despite very many attempts.


Mr. President, yesterday like many other Nigerians. I resumed work confronted by many publications of massive changed within NNPC. Like the previous reorganizations and reposting done since Dr. Baru resumed as GMD. I was never given the opportunity before the announcements to discuss these appointments. This is so despite being Minister of State of Petroleum and Chairman NNPC Board.

The Board of NNPC which you appointed and which has met every month since its inauguration and, which by the statues of NNPC is meant to review these planned appointments and postings, was never briefed. Members of the Board learned of these appointments from the pages of social media and the press release of NNPC.

At the minimum and like all other Parastatals being supervised by me at the Ministry have continued to do, and in compliance with the proper governance standards expected of a serious public institution, these executive actions by NNPC were supposed to benefit from mine and the Board’s input prior to presentation to you. I need to add that backdoor and present same to the acting president were met with a request that this be discussed with me. This was never done.

Indeed, in anticipation of vacancies that would arise from retiring senior executives of NNPC, I wrote the GMD A letter requesting that we both have prior review of the proposed appointments. This was to enable me to present same to the Board or give an anticipatory approval and then review with the Board later (Appendix 1). I wrote to the GMD given previous happenstance of this nature, in addition, thereafter, I called the GMD to a private meeting where I discussed these issues. Needless to say that, not only did he not give my letter the courtesy of a reply, he proceeded to announce the appointments without consultation or Board concurrence.

Mr. President please not that there is a Board Services Committee whose function is to review potential appointments and terminations of Senior Staff prior to implementation. This committee was also not consulted.

The above is just one of the many occurrences of disrespectful experiences I have encountered with the GMD as your Minister of State.


The legal and procedural requirements are that all contracts above $20m would need to be reviewed and approved by the Board of NNPC. Mr. President over one year of Dr. Baru’s tenure, no contract has been run through the Board. This is despite my diplomatic encouragement to Dr. Baru to do so to avoid wrongfully painting you as a President who does not allow Due Process to thrive NNPC. Given the history of malpractices and the public perception of NNPC as having a history of non-transparency (Appendix 2: NEITI report), the NNPC Tenders Board (NTB) cannot be the final clearance authority for contracts it enters into. The NTB which is a collection of top level NNPC executives and COOs, with the GMD as Chairman, cannot continue to be the final approval authority for multi-million dollar contracts and transactions involving NNPC to the exclusion of the Board. Board members have singularly and collectively raised these issues to no avail. (Appendix 3: Letter from Vice President on Expanded Contract)

The following major contracts were never reviewed by or discussed with me Board of NNPC:

The Crude Term contracts- value at over $10bn
The DSDP contracts- value over $5bn
The AKK pipeline contract- value approximately $3bn
Various financing allocation funding contracts with the NOCs – value over $3bn
Various NPDC production service contracts – value at over $3bn–$4bn

There are many more Your Excellency, in most of these activities, the explanation of the GMD is that you are the Minister of Petroleum and your approvals were obtained. However, the correct governance should be that the Minister of the State and the Board review the transaction and give their concurrence prior to presentation to you. As I many cases of things that happen in NNPC these days. I learn of transactions only through publications in the media. The question is why is that the Parastatals which I supervise as Minister of State or Chair of their Board are able to go through these contractual and mandatory governances processed and yet NNPC is exempt from these?

I know that bravado management style runs contrary to the cleansing operations you engaged me to catty out at the inception of your administration. This is also not in consonance with your renowned standards of integrity.


Your Excellency, even though the appointments of the other Parastatals Heads in my Ministry were made without my input. I have maintained a cordial and respectful relationship with all. Parastatals under my supervision have continued to excel in their respective areas and adhere to mandatory governance processes. However, my working relationship with GMDs has been fraught with humiliation, sidelining and campaigns of character defamation against me. This is particularly frustrating given many contributions I have made to the growth and stability of the Nigerian Oil and Gas industry through the many policies I have introduced August 2015.

If NNPC is considered and known to be one of the Parastatals under the Ministry, why does the GMD refuse to report into my office or to the Board on the serious issues such as above especially given that I have been by Your Grace, the Minister overseeing these Parastatals for two years?

Your Excellency, even at the time when we were unfortunate to have you away to England for a medical checkup, the situation remained the same.


The matter of collaborative meeting is another issue altogether. When I call for meetings, the GMD chooses which meetings he wishes to attend and those he chooses to send subordinate. He sends such subordinates without the courtesy of a call to explain his absence.  The unattended meetings are in the majority. In all of 2017, I have been able only to get him to have one on one meetings with me about four to five times.

At inception, I instituted a Monthly Parastatals review meeting with Head of Agencies and another with the all the Senior management in all the Parastatals. GMD objected to his Senior Staff coming to the Joint Senior Management meetings. He argued that this was overreaching his territory. He was only comfortable with the Monthly of all Heads of Agencies meetings which he has only attended a few times. I have had to carry on with the rest of the Ministry. Despite being Chairman of NNPC Board. I have tried to manage the bad perception created by GMDs blatant insubordination and disrespectful attitude. Particularly I have worked hard to avoid being seen as pretty and meddlesome.


The effect of the attitude of the GMD and the sidelining of the Board is that there is a fear culture in NNPC. The open administration I introduced, with your support in our first year of pushing reforms, has been completely eroded. The essence of this innovation was to drive great working interface and interaction amongst all Parastatals in the Petroleum sector. Other Parastatals have benefitted from this.

NNPC staff are afraid of contacting me to avoid being punished, sidelined in appointments and targeted. Indeed, the key factor for growth and advancement in NNPC of today is to avoid the Minister of State’s Office.


In order to convince to your Excellency of the need to sideline me, I am sure I have been labeled as being.



III. In Collusion With Militants

Some faceless blogs have even had the audacity to circulate such rumors. Nothing Your Excellency can be further from the truth. I mention this because this will be the likely response you will receive to this attempt I am making to alert you on the state of affairs under the GMD’s leadership.

These accusations are baseless.


First, all my appointments were generated with key inputs from all the COOs of NNPC and were balanced and based strictly on skills, experience, drive, and ethnic balancing for senior management positions. Mid-level positions were sole suggestions of the COOs. Let me say for the records that I am a completely detribalized Nigerian and I have lived my formative years in the East, West, North, and South-South part of the Country. My Father was a Federal High Court Judge in most parts of the North. My siblings and I benefited from growing up in Kano. In addition, I have resided and worked in Rivers, Delta, Lagos, Oyo, Enugu, Anambra, etc. I have no reason to be anti-North because in my working career I have found that good and skillful people abound everywhere in our Nation.


I have done nothing in my time at NNPC or the Ministry that is corrupt or laced with any such intent. In my time as GMD, all policies and contracts were generated by the Heads of Division, approved by COOs, passed through NTB and (in the absence of a Board at the time) I received your approvals, I have had no relationship with any one of or any transaction in my period that was product of a personal deal or an arrangement, if anyone benefited from NNPC contracts, they did so on their merit and I rarely participated in those contractual processes except to review them.

Anyone peddling any contrary information is resorting to cheap blackmail.


I took on the issue of security headlong because it was the primary causative factor for production that declined from 2.2 mpbd to 1mpbd at our lowest point (November 2016). At great risk to my life. I visited militant camps, coordinated with our security apparatus, organized the four of the HEVP to several frontline states and worked with PANDEF and other groups to bring calm and increase production and some measures of stability to what it is today.

I have never betrayed the trust you placed on me. I did not deploy any public financial resources to achieve the results in the Niger Delta region. Most times I have utilized my personal resources and goodwill accumulated over the many years prior to my appointment to achieve these far reaching results and of course all these were with collaborations with Agencies of the government (Office of the VP, DSS, NSA, etc.)

I dare mention that the blueprint of these engagements were discussed with and approved by you.

Given the sensitivity of my position, I remain one of the most tracked officers of your government, so if there is any truth to these rumors, you would have known.

Mr. President you took me from the private sector where I left an enviable track record of performance and integrity spanning over 25 years rising to the highest positions in multinational oil sector organization. I came to this job with the zeal to change the sector. Measurable progress has been made and more would have been achieved but for the challenges I have listed above.


Mr. President I have been on a race to stabilize and move the industry to the next phase. Timing is critical. The sector is also in a critical state where only innovative ideas can stop the alarming impact of the fall of oil prices on the National Income. The innovations that we have developed and stated implementing in the Downstream, Upstream, Policy generation and Niger Delta Security have enabled the sector to stabilize slightly. However, truth is that given the global challenge in this sector, we must aggressively pursue out of the box ideas on rejuvenating this sector, getting the best yield and increasing our earnings from oil and gas. What this means is that Parastatals in the Ministry and all CEOs of these Parastatals must be aligned with the policy drive of the supervising Ministry to allow the sector register of the growth that has eluded it for many years. To do otherwise or to exempt any of the Parastatals would emplace a stunted growth industry.


My prayers most humbly and respectfully are:

That we save NNPC and the oil industry from collapse arising from the above non-transparent practices and empower the Board you inaugurated to do the needful.
That you save the office of the Minister of State from further humiliation and disrespect by compelling all Parastatals to submit to oversight regulatory mandate and proper supervision which I am supposed to manage on your behalf.
You kindly instruct the GMD to effectively leave NNPC to run as a proper institution and report out along due process lines to the Board and that your Excellency instructs that all reviews be done with the Minister of State prior to your decision.
That to set the right examples, you approve that recently announced reorganization changes be suspended until the GMD, myself, and the Board have made relevant input to same. This will send a clear signal of process and transparency.
That your Excellency encouraged joint presentation meetings between heads of Parastatals and the Minister of State to you so as to encourage a culture of working together and implant discipline in the hierarchy.

These in my view, Mr. President, will provide you balanced analysis on issues and avoid exposing the exalted office of Mr. President to ridicule. It will also reduce nonproductive, unsubstantiated rumor peddling.

Mr. President, I thank you for the opportunities given me to serve and I wish you continued full recovery. I remain loyal and very proud of you Sir.

Mr. President kindly accept the assurances of my highest esteem and loyalty.

Dr. Emmanuel Ibe Kachikwu

Honorable Minister of State Petroleum Resources.

Kachikwu’s Letter Confirms ‘A Cycle Of Power’ Within Buhari Govt. – Shehu Sani

Senator representing Kaduna Central, Shehu Sani, has said the letter by the Minister of State for Petroleum, Ibe Kachikwu to President Muhammadu Buhari is an indication that there is a “circle of power within the President’s government”.

The Minister, in the letter had accused the Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, Dr. Maikanti Baru of insubordination and humiliation.

Kachikwu had also expressed disappointment at the fact that he had no express access to the president.

But speaking on Channels Television, on Wednesday, Sani said Kachikwu’s letter showed that there was a system disconnect in the government circle.

According to the lawmaker, the letter had shown that there was a government within Buhari’s government.

Sani said, “The content of that letter and the allegations raised also raise a number of issues, not only about the NNPC but about the whole structure of governance that exists today.

“If a minister of state can outright say it’s been difficult for him to access channels through which he can present his issues, I think there is a system disconnect there.

“And it is simply giving credence to the fact there exists a government within the government. There are individuals that have formed a shield, a cycle. And I think the issue that it raised in every possible way, is pointing to the fact that there is a cycle of powers within powers itself.”

Clarifying his statement, the lawmaker said the “government within the government” he referred has nothing to do with the kitchen cabinet.

“This is about some persons who have surrounded the president and are exercising powers to themselves and to their advantage and also manipulating power for their own personal interest,” he added.

However, Sani said the President might not be aware of the issues raised in the letter.

“I am of the firm belief that if he is aware of this, he would have taken action.

“And if he is not aware of this and this has been brought to the public fore, then he can now take action on it. But if he says he will not take an action on this issue, then it will certainly stain the integrity of the administration,” he said.

BREAKING: Senate To Probe Ibe Kachikwu’s Letter To Buhari

The Nigerian Senate on Wednesday resolved to launch a probe into a letter written by the Minister of state of Petroleum Services, Ibe Kachikwu to President Muhammadu Buhari complaining about insubordination and Ill-treatment from the GMD of the Nigerian National Petroleum Commission (NNPC), Dr Maikanti Baru.


It was gathered that the Senate will be investigating the matter after a motion by Senator Samuel Anyanwu which had an amended prayer on the issue by Senator Kabiru Marafa.


Aliyu Wamakko heads the nine-day ad-hoc committee. It was also learnt that no time frame was given to the ad-hoc committee by Senate President Bukola Saraki.


On Tuesday, Ibe Kachikwu penned an 8-page letter to the president complaining about Baru’s ill-treatment towards him.


In the letter, which was leaked to the press, Ibe levelled heavy accusations on Baru, stating that Baru issued contracts without consulting his office, labelled him anti-north, made appointments without due consultation and accused him of conspiring with militants.