What ‘Ag. President’ Approved For NNPC Were Not Contracts

Our attention has been drawn to some misleading reports suggesting that the Vice President approved certain procurement contracts for the Nigerian National Petroleum Corporation (NNPC). This is totally false, as the approvals referred to were actually for financing arrangements in replacement of the traditional Joint Venture Cash Call obligations.

In the statement of NNPC recently released in response to allegations made by the Minister of State for Petroleum Resources, reference was made to various financing arrangements with NNPC’s Joint Venture Partners, which were approved by the Presidency under the current administration.

There were three such loan financing arrangements made for:
(i) NNPC/Chevron Joint Venture Project
(ii) NNPC/Chevron Accelerated Upstream Production Project
(iii) NNPC/Shell/Total/Agip Joint Venture Accelerated Upstream
Production Project

While the first was approved by the President in person, the second and third were approved by the Vice President as Acting President.

The NNPC Act, Cap. N. 123, Laws of the Federation, (updated to 2010), authorises the Corporation to borrow such sums as it may require in the exercise of its functions.

Sub section (2) goes further to specify the only precondition:
“The Corporation shall not, without the approval of the President, borrow any sum of money whereby the amount in aggregate outstanding on any loan or loans at any time exceeds such amounts as is for the time being specified by the President.”

Furthermore, subsection (4) provides that
“Where any sum required aforesaid –
a. is to be in currency other than Naira; and
b. is to be borrowed by the Corporation otherwise than temporarily,
the Corporation shall not borrow the sum without the prior approval of the President.

These financings are purely commercial loans obtained by NNPC and its Joint Venture partners, mainly from local and foreign banks, to perform their exploration and production activities. Repayments are also made out of revenues from the crude oil produced directly by the funded project. Unfortunately, they are being confused with contracts for goods and services.

The alternative financing arrangements became necessary as inability of Government to meet its cash call obligations had stalled further investments in the petroleum sector and reduced the country’s production capacity.


Laolu Akande
Senior Special Assistant to the President on Media & Publicity
Office of the Vice President
12 October, 2017

Trash

The amount of English embedded in a statement is directly proportional to the corruption involved.

Nice one. Where are the noise makers?

.

Hahahahahah

Useless country

Is Buhari still a Saint? No body should tell me his too innocent for all these scams

lol ... com an see american wonder

Osinbajo don take style untangle himself from Baru and Buhari.

dis administration is beyond comedy.

Oh ok

This case must not be swept under carpet, Buhari and his goons must be brought to book.

I'm not surprised by the DULLARD-IN-CHIEF of the Armed forces President JUBRIL

I sha know say someone thief money.. Period

ok

Borrow what? For which JV?

The JV's source for their own funding now. Which funding una dey talk about again?

Is this the same akende that twitted yesterday??




Pyo for hear am if to say him accept say na him,

Mischievous Igbos liars won't stop at nothing. The more you continue the more the whole nation hates you. South Africa already hates and kills you anyhow. Your propaganda, liars and twist doesn't werk anymore.
We know you hate everyone except yourselves because of your selfishness and greed

I am sure this laolu guy is Bisi Akande's son

Grammar....!

All we know say Buhari has done it again......!!

#Whereisour26Billiondollars........?

I just dont understand anything again

APC and double standards

Bullhari stealling oil money since 1965

brainpulse:
Mischievous Igbos liars won't stop at nothing. The more you continue the more the whole nation hates you. South Africa already hates and kills you anyhow. Your propaganda, liars and twist doesn't werk anymore.
We know you hate everyone except yourselves because of your selfishness and greed

You are too old for this. I expect you to use your several monikers and begin to like this comment.

We are talking about NNPC you want to shift our focus to Buhari's other mess up with the world bank. We cant combine two messes at once. calm down. lets handle NNPC mess here first.

God help us in Nigeria

Lemme come back

The Vice President have a name to protect
If his name it's all that can follow him from these mess of a leadership
At least we know he's not Osinbande

Money don enter Voicemail

Chei, dis one na country so?

hnmm useles country indeed

NothingDoMe:
you are too old for this

Look we all understand what's happening, before the election, it was the same liars against Buhari, the north and the south west. Some of you boosted that Buhari will never win. When he won, he decided to visit the south east you people threatened he shouldn't come or else his life will be in danger......and it continues till now. All you don't know is that you attract hatred to yourself from everyone around you. Just continue

Where is our $26Billion?