How Buhari Compelled NNPC & Other Companies To Fund Northeast Development

The National Petroleum Investment Management Services ( NAPIMS ) , an arm of the Nigerian National Petroleum Corporation ( NNPC ) , has directed operators in the petroleum industry to contribute to the Internally Displaced Persons ( IDP ) Intervention Fund for the people of the North East.

A letter to the operators, exclusively obtained by The Guardian , shows that contributions will be made to a proposed “ Dedicated Account , ” while specific areas of infrastructure development interventions were spelt out, which should be “ treated as urgent. ”

However, as urgent as it is meant to be, the NNPC and some of the operators were reluctant to speak on specific issues raised by The Guardian in an enquiry sent to them .

Although the NAPIMS ’ directive did not indicate how much the IDP Fund is, The Guardian learnt that each operator is expected to contribute at least $100 million annually to the fund.

The directive is coming as a surprise to many analysts , especially as there is already a Presidential Committee on the North East Initiative ( PCNI) engaged in various intervention programmes .

President Muhammadu Buhari in January last year appointed a committee headed by Gen . Theophilus Danjuma , and Africa ’ s richest man , Aliko Dangote, and a host of others as members , to rehabilitate infrastructure and resettlement of the IDPs

Aside from these , respective individuals and corporate establishments , foreign and local, have initiated various support programmes for the North East IDPs , which make the NNPC/NAPIMS directive curious , especially as the Federal Government will share in the contributions based on its equity stake in the joint venture ( JV ) operations .

The NNPC is the government ’ s concessionaire in the oil ventures, and would inevitably pay from its share as part of the operating cost for the year .

The letter titled “ Internally Displaced Persons ( IDPs) Intervention Programmes /Projects and Proposed Dedicated Account” reads :

“ Further to the creation of a line item in the 2017 budget ( 5800:11) and the allocation of funds therein , it is our firm belief that to achieve the purpose for which the intervention programme and attendant budget was meant , you are hereby advised to carry out the following:
“• Immediate construction of the resettlement projects ;
“• Constitution of a project monitoring committee ( composed of NNPC /NAPIMS /operators facilities engineers and community development personnel);
“• Opening of a dedicated account exclusively for the purpose of prompt payment for IDP intervention ( projects and programmes ) activities ;
“• Funding of the account one -off, to avoid payment delays due to the vendors /contractors; and
“• Ring- fencing of the IDP budget.
“ NAPIMS , in conjunction with operators, will utilise the IDP intervention funds to construct resettlement facilities that can be replicated at various locations as detailed overleaf :
“ Proposed Projects
“• Units of 2 bedroom twin bungalows – 50 units per settlement ( expected to house 100 families);
“• Schools ( primary and secondary );
“• Health care centres /cottage hospitals;
“• Market stalls;
“• Provision of potable water; and
“• Electrification .
“ The facility is also expected to have roads, drainage channels and waste disposal systems .
“ A soft copy of the bill of quantities and cost structure will be forwarded to you soon .
“ Please treat as urgent. ”
The letter was signed by former Group General Manager of NAPIMS , Dafe Sejebo , for the NNPC, who ironically was relieved of his position the same day, after making a presentation on the IDP intervention programme .


But the Socio -Economic Rights and Accountability Project ( SERAP ) declared the NNPC -NAPIMS directive as illegal and should not be encouraged , as it is government ’ s responsibility to take care of its citizens and not tax -paying corporate entities.