Presidency Says ‘No Missing $25bn NNPC Contract’

Buhari and Osinbajo

Neither the report that $25 billion worth of oil contracts were awarded by the Nigerian National Petroleum Corporation ( NNPC) nor that $25 billion in NNPC funds was missing was true, the Presidency has said.

The revelation was made on Sunday when the Presidency hosted Eid al-adha lunch at the Banquet hall, State House, Abuja.

The Senior Special Assistant to the President, Office of the Vice President, Laolu Akande in a statement said that there were no contracts procured by the NNPC based on the leaked memo of the Petroleum Resources Minister of State, Dr. Ibe Kachikwu.

Akande added that such impressions had been “maliciously” created in the past few weeks. He said that a closer look at each of the said projects indicated clearly that “these are not procurement contracts.”

Akande said: “When I tweeted on Thursday morning last week, I had indicated that the Vice President, while acting as President approved Joint Venture Financing arrangements.

“But for some curious reasons, a few media reports used that tweet to report that I said the then Acting President approved N640 Billion worth of oil contracts. Such reporting is both false and misleading and therefore ought to be completely ignored by all seekers of truth.

“When you look diligently at the referenced projects/transactions one by one, you will see, as NNPC has shown, that none of them was actually a procurement contract.

“Take both the Crude Term Contract and the Direct Sale, Direct Purchase (DSDP) agreements for instance, these are not procurement contracts involving the expenditure of public funds.

“Both transactions are simply a shortlisting process, in which prospective off-takers of crude oil and suppliers of petroleum are selected under agreed terms, and in accordance with due process. It is therefore wrong and misleading to refer to them as though they’re contracts involving the expenditure of NNPC funds, or public funds of any sort.

“As you now know, the Honorable Minister of Petroleum Resources himself has in fact clarified that he meant to focus on administrative and governance issues, not red-flag any fraud – because no fraud exists in this matter.”

Akandealso said that it was inaccurate to attach $10 billion and $5 billion values on both transactions.

He said, “Attaching monetary values to these contracts is an arbitrary act that completely distorts understanding of the situation.”

The media aide said Nigerians ought to be informed clearly that “whenever there is a monetary value on any consignment of crude oil lifted in this country by any firm, the proceeds go directly to the Federation Account and not to any company.


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