A civil society organisation, Coalition for Better Nigeria has expressed support over the ongoing move by the National Assembly to probe into the controversial N2.1 trillion oil pipeline surveillance contract awarded by the Nigerian National Petroleum Company Limited (NNPCL).
This is as the coalition also called on President Bola Ahmed Tinubu to review the contract, describing the arrangement as economically unsustainable and ineffective in curbing crude oil theft.
Spokesperson of the group, Comrade Yahaya Garba at a press conference in Abuja, said the ongoing legislative investigation was a welcome step towards transparency and accountability in the management of Nigeria’s oil and gas resources.
The group recalled that the contract was awarded to Tantita Security Services Nigeria Limited and Pipeline Infrastructure Nigeria Limited for pipeline surveillance operations across parts of southern Nigeria by the former NNPCL management led by Mele Kyari.
According to the group, what was initially presented to the public as a N4.8 billion monthly contract has now been revealed to be a multi-trillion-naira arrangement, a development it described as unacceptable and a breach of public trust.
The group questioned the effectiveness of the surveillance arrangement, citing recent international interceptions of vessels allegedly transporting stolen Nigerian crude oil.
It argued that such incidents showed that large-scale oil theft was still occurring despite the huge sums reportedly spent on protecting pipelines.
The group further noted that the scale of oil theft suggested possible connivance by some individuals, insisting that shipments of stolen crude would not have left Nigerian waters if the surveillance system was working effectively.
The coalition urged the federal government to review and drastically reduce the cost of pipeline security, proposing that host communities in oil-producing areas be engaged directly to protect pipelines in their territories.
About the Author
