NNPCL Awaits Presidential Directive N48BN Pipeline Deal

The Federal Government has not issued any directive for the cancellation or re-award of the N48bn oil pipeline surveillance contract in the Niger Delta, contrary to speculations in some quarters.

It was, however, gathered that the Nigerian National Petroleum Company Limited was awaiting the presidential directive on the future of the contract.

In August last 2022, it was reported that the government awarded the pipeline contract to a security firm of the former leader of the Movement for the Emancipation of Niger Delta, Government Ekpemupolo, popularly known as Tompolo.

The surveillance contract, reportedly worth N48bn per year (N4bn per month), elicited diverse reactions, as some stakeholders commended the move, while others kicked against it, leading to recent claims that it might be cancelled or awarded to another firm.

This came as oil sector operators and analysts advised the Federal Government to analyse the Key Performance Indicators of the contract before re-awarding or terminating it.

Recall that the Senate through its Committee on Ethics, Privileges and Public Petitions, in January, summoned the Group Chief Executive Officer, NNPCL, Mele Kyari, over the pipeline contract, following a petition by the Isoko Community, alleging that their young men were not carried along in the multi-billion naira project.

The Isoko people under the auspices of Interested Isoko Youth Groups, through a petition sent to the Senate on their behalf by Stanley Okonmah, had alleged that they were completely marginalised in the contract award.

The lsoko Ethnic Nationality had requested the Senate to probe the award of the contract and prevail on the NNPCL management to award a fresh contract to a company owned by an Isoko person.

But sources at the NNPCL stated on Friday that though there had been speculations recently that the contract could be re-awarded, no directive had been issued on that.

When asked whether the NNPCL would cancel or re-award the contract, an official of the national oil firm replied, “This question should be directed at the Presidency/National Security Adviser. It’s not a decision NNPC can make.”

When probed further on whether it was not the NNPCL that engaged the security firm, the official replied, “with presidential approval.”

Kyari had defended the contract around the time it was awarded, as he explained that the decision was necessitated by the need for Nigeria to hire private contractors to man its oil pipeline network nationwide due to 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 NNPCL boss had stated.