According to information obtained on Sunday, the Federal Government has so far paid $4.04 billion to five foreign oil corporations as reimbursement for cash call arrears and has spent N12.43 billion on pipeline repair and protection this year.
According to the most recent information on pipeline security and maintenance costs provided by the Nigerian National Petroleum Company Limited, the government spent N12.43 billion through NNPC between January and June of this year. According to data from the oil corporation, pipeline security and maintenance cost N1.1 billion, N368 million, and N2.61 billion in January, February, and March of 2022, respectively.
In order to safeguard and maintain its pipelines, the NNPC spent N498 million in May and N8.35 billion in June. The company deducted N464 million in April from the total amount spent during the review period. Due to the ongoing destruction of pipelines and massive crude oil theft, Nigeria’s production of crude oil has continued to decline.
The oil corporation recently contracted the surveillance of its pipelines to a contractor, a step that triggered a range of responses, which led to the N12.43bn spent in the first six months of this year to secure pipelines.
On August 30, 2022, NNPC stated that it had made the “correct decision” in awarding a multi-billion naira pipeline monitoring contract to Government Ekpemupolo, also known as Tompolo, a former leader of the Movement for the Emancipation of the Niger Delta.
The Group Chief Executive Officer, NNPC, Mele Kyari, had told journalists in Abuja recently that the decision was due to the need for Nigeria to hire private contractors to man its oil pipeline network due to a massive oil theft.
He said, “The security agencies are doing their part. End-to-end pipeline surveillance would require the involvement of private entities and community stakeholders.
“We need private contractors to man the right of way to these pipelines. So, we put up a framework for contractors to come and bid and they were selected through a tender process. And we believe we made the right decision.”
The pipeline surveillance contract is reportedly worth N48bn per year (N4bn per month), and several groups in the Niger Delta have raised concerns about the deal.
Last week, a renowned Niger Delta activist and Igba of Warri Kingdom, Chief Rita Lori-Ogbebor, said the pipeline surveillance contract should be revoked to avert impending war in the region, as various oppositions to the contract increased.
Lori-Ogbebor, who spoke to journalists in Abuja, argued that it was the responsibility of the Federal Government to manage the Niger Delta and not an individual or company.
She said, “We should be worried about what is happening in the Niger Delta currently, because that contract is causing tension in the region. I am calling on the entire world to what is happening in the Niger Delta. There is a drum of war in that region.
“There is a show of ammunition without fear. People show them without fear. I am urging the Federal Government to withdraw the contract from Tompolo because as the custodian of this country it cannot leave Niger Delta in the hands of few persons to manage.”
