Rehabilitation Of Suleja Depot: Groups Accuse NNPCL Of Hiding Details Of Contract Award To Macready Oil And Gas Services Company

By NewsBits

The Divine Era Development and Social Rights Initiative (DEDASRI), and Media Awareness Advocacy Foundation (MAWA-Foundation), have accused the Nigerian National Petroleum Corporation Limited (NNPCL), of concealing details of contract awarded to Macready Oil and Gas Services Company Ltd for the rehabilitation of Suleja Depot in Niger state.

The two Non-Governmental Organisations (NGOs) described the refusal of NNPCL to disclose particulars of the contract awarded to Macready Oil and Gas Services Company Ltd, as a grave violation of the provisions of the 1999 Constitution (as amended), the Freedom of Information Act (2010), and the African Charter on Human and Peoples’ Rights, as well as EITI principles.

The groups in a report funded by ‘Publish What You Pay,’ and signed by Enwelum Ogechukwu U, Executive Director, DEDASRI, noted that while work has started on the 2.8 billion U.S dollars contract awarded by NNPCL to Oilserv Ltd to rehabilitate the 170.8km Kaduna-Suleja Products Pipeline, no work is going on at the Suleja Depot.

“The failure by the NNPC to disclose the information sought is a grave violation of the provisions of the Nigerian Constitution 1999 (as amended), the Freedom of Information Act, the country’s obligations under the African Charter on Human and Peoples’ Rights and EITI principles,” the groups stated in the report made available to Summitnews.

According to the NGOs, “our team visited the Kaduna-Suleja Products Pipeline covering 170.8km and Suleja Depot, the supposed contract said to have been awarded to Macready Oil and Gas Services Company Limited by NNPCL.

“We found that no project has commenced at the Suleja Depot, whereas the rehabilitation of the Kaduna-Suleja Products Pipeline covering 170.8km was already being implemented by Oilserv Ltd… It was revealed that the Oilserv Ltd. project was awarded at the cost of 2.8 billion dollars, and so far, the total sum of 1.5 billion dollars has been released to the contractors.

“The village heads, ward heads, religious leaders, and other prominent members of Dadabili, Sabon Gwai, Gawu Babangida, Sarkin Pawa communities interviewed said they were consulted, some of their youths engaged, and they are satisfied with the progress made on the contract implementation by Oilserv Ltd.

“On the part of Macready Oil and Gas Services Company Ltd some of the employees interviewed at the Suleja Depot disclosed that no work had taken place.”Recall that in October 2023, industry operators criticized   NNPCL over a spate of contract awards, a development that forced NNPCL to issue a statement which explained that the contracts were awarded based on evaluation criteria and by industry standards.

The groups stated that “under the Disclose the Deal Campaign Nigeria Project implemented by Divine Era Development and Social Rights Initiative (DEDASRI) with its partner Media Awareness Advocacy Foundation (MAWA-Foundation) through its lawyer, Falana, and Falana Chamber, they requested NNPCL to provide it with details of the contract awarded to Macready Oil and Gas Services Company Limited under the Freedom of Information Act 2010.

“The request was made in the pursuit of promoting transparency and accountability in the extractive sector as the country’s major source of revenue. Transparency would ensure that the revenues generated from Nigeria’s oil and gas sector are not diverted into private pockets, and increase public confidence that the revenues would be used for the benefit of its citizens.

“Unfortunately, NNPC, the umpire in Nigeria Oil and Gas Sector refused to disclose the information sought with a claim that the passage of the Petroleum Industry Act 2021 made it a private company, and no longer under any obligation to respond to FOI requests. This negates the commitment of NNPCL to contract transparency and accountability as a supporting company to EITI implementation in Nigeria.

“The failure by the NNPCL to disclose the information sought is a grave violation of the provisions of the Nigerian Constitution 1999 (as amended), the Freedom of Information Act, the country’s obligations under the African Charter on Human and Peoples’ Rights and EITI principles.

“Contracts awarded by NNPC have been mostly shrouded in secrecy and this may be due to corruption. The public interest in publishing the information sought outweighs any considerations to withhold the information. “Section 15(5) of the Nigerian Constitution 1999 (as amended) requires public institutions and officials to abolish all corrupt practices and abuse of power.

“Section 16(2) further provides that, ‘the material resources of the nation are harnessed and distributed to serve the common good.’ Section 13 of the Nigerian Constitution 1999 imposes the responsibility on NNPCL to conform to, observe, and apply the provisions of Chapter 2 of the constitution.

“More so, Nigeria made legally binding commitments under the UN Convention against Corruption and the African Union Convention on Preventing and Combating Corruption to ensure transparency and accountability in the management of public resources.

“In articles 5 and 9 of the UN Convention against Corruption, NNPCL has the legal obligation to ensure proper management of public affairs and public funds. These commitments ought to be fully upheld and respected.

“Nigerians are entitled to the right to receive information without any interference or distortion, and the enjoyment of this right should be based on the principle of maximum disclosure and a presumption that all information is accessible subject only to a narrow system of exceptions. This accounts for the reason why the FoI Act 2010 was enacted.

“By Section 1 (1) of the Freedom of Information (FOI) Act, DEDASRI and her partner MAWA Foundation is entitled as of right to request for or gain access to information, including information on the details of contracts awarded, total amounts of the contracts, other details of the contract.

“The Freedom of Information Act, Section 39 of the Nigerian Constitution, and Article 9 of the African Charter on Human and Peoples’ Rights guarantee everyone the right to information, including the details of revenue management and contract awards.

“Access to public information in the extractive sector including disclosure of contract awards will encourage citizens especially women and youths to participate in decisions that affect them in the sector. Transparency and accountability in the Nigerian economy are paramount and all stakeholders must work towards its attainment.”

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