US$24BN SCANDAL HIT STATE OIL CORPORATION, NIGERIA

Nigerian National Petroleum Corporation (NNPC) boss on tension as Minster of State for Petroleum Resources expose illegal contract deal. 

Mr Ibe Kachikwu, the Minster of State for Petroleum Resources, has given details to the presidency of some questionable dealings of the Group Managing Director of NNPC, Maikanti Baru.

Mr. Kachikwu on an August 30 correspondence said Mr. Baru bypass procurement regulations in awarding a series of contracts which were up to US$25 billion, which he believed would have grave consequences if allowed to stand.

No one has claimed credits for its leakage since the letter appeared on the internet on Tuesday noon.

The minister gave a full details of the contracts said to have been awarded without contacting the Ministry of Petroleum or the management board of the NNPC, some of the details included; US$10 billion crude term contracts; US$5 billion direct sales direct purchase contracts and US$3 billion pipeline contract.

After concerted efforts to have a one-on-one appointment with the president at the State House fell through Mr Kachikwu had to write the memo.

The president tends to remain silence on this issue, the Senate has taken immediate steps to unravel the controversy, raising an Ad-hoc panel to investigate all the elements of the alleged sharp practices detailed in Mr. Kachikwu’s letter.

Industry experts warn that the feud could have riveting consequences on Nigeria’s oil sector, which is the country’s lifeline.

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