Reps probe NAPIMS over alleged $260m illegal contract

25 February 2016, Abuja – The House of Representatives, yesterday, directed its Committee on Petroleum Upstream, and Public Procurement to probe an alleged $260 million “illegal” contract by National Petroleum Investment Management Services, NAPIMS, a subsidiary of the Nigerian National Petroleum Corporation, NNPC.


Mr. Yakubu Dogara, Speaker, House of Representatives

The committee is expected to submit its report on the floor of the House within the next four weeks.

This development was sequel to the passage of a motion, entitled “Need to investigate NAPIMS alleged illegal award of $260 million contract,” promoted by Babatunde Gabriel Kolawole, Akoko South East/South West Federal Constituency, Ondo State.

In his submission, the Ondo State lawmaker said 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.

He said: “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 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.

“NAPIMS allegedly fraudulently 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 Deepwater Project, at a total value of $260 million without any form of tendering process.”

He explained 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. The motion was unanimously passed when the Speaker of the House, Yakubu Dogara, called for a voice vote.


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