House of Representatives has resolved to investigate the $260 million contract awarded by the National Petroleum Investment Management Services.
It has therefore mandated its committees on Public Procurement and Petroleum Resources (Upstream) to ascertain if the $260 million contract awarded by the National Petroleum Investment Management Services passed through due process.
The resolution followed the adoption of a motion sponsored by Hon. Babatunde Kolawole titled ‘Need to Investigate the $260 Million Contract Awarded by the National Petroleum Investment Management Services.’
In his lead debate, Kolawole explained that the National Petroleum Investment Management Services, a subsidiary of the Nigerian National Petroleum Corporation, NNPC, granted approval for Esso Exploration and Production Nigeria Limited, a subsidiary of ExxonMobil, to award four single source contracts for projects in ExxonMobil’s Usan Deep water project for the sum of $260 million without due process.
Kolawole argued that there was need to curtail profligate use of the nation’s resources as enshrined in the Constitution of the Federal Republic of Nigeria, particularly in the face of dwindling oil revenue.
The lawmaker said that NAPIMS had allegedly, through three memos, dated: October 13, 2014; February 10, 2015 and April 16, 2015, single handedly nominated four companies to execute the contracts.
According to him, “There is the need to investigate the report of an alleged $260 million contract given by the National Petroleum Investment Management Services, NAPIMS, a subsidiary of the Nigerian National Petroleum Corporation, NNPC, in fragrant violation of due process and without approval from both the NNPC’s board and the Corporation’s Group Executive Committee, GEC, as required.
“This shallow excuse is not sufficient excuse to fritter away $260 million, at a time when the nation is seeking ways to fund the 2016 budget and to weed out unnecessary expenses from the annual appropriation.”
Kolawole further noted that the management of the NNPC washed its hands off the contract in a recent advert, insisting that it never gave approval for the said contract as it predates the current management of the NNPC.
He therefore called on his colleagues to support the bid to curtail such profligate spending by probing the alleged illegality.
The committees were given four weeks to report back to the House for further legislative action.


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