Federal Government Spent N12.43 Billion to Secure Oil Pipelines in Six Months

Between January and June 2022, the Nigerian government expended N12.43 billion on pipeline protection and maintenance, the Nigeria National Petroleum Company (NNPC) reported has shown.

Data obtained from the NNPC indicated that a sum of N1.1 billion was spent in January 2022 to secure oil pipelines. The company also paid N368 million and N2.61 billion in February and March respectively. 

While the amount spent in April and May was N464 million and N498 million respectively, the figure however jumped to N8.35 billion in June 2022.  

Investors King earlier reported that Nigeria’s oil production has been under constant threat of vandalism and theft which has drastically reduced the country’s oil output in the international oil market. As a result, Nigeria lost its crown as Africa’s largest oil producer to Angola in August. 

Meanwhile, toward the end of August, NNPC awarded a multi-billion naira pipeline surveillance contract to a popular repentant oil vandal and former leader of the Movement For The Emancipation of Niger Delta (MEND), Government Ekpemupolo, commonly known as ‘Tompolo”. 

NNPC described the contract as the right decision and a strategic way to prevent pipeline vandalism and eventually increase oil production. 

NNPC through its Group Chief Executive Officer, Mele Kyari stated that pipeline surveillance requires 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 which was awarded to ‘Tompolo’ at the worth of N4 billion per month and N48 billion per annum has generated mixed reactions. 

Chief Rita Lori-Ogbebor, a renowned Niger Delta activist and Igba of Warri Kingdom said the pipeline surveillance contract should be revoked to avert impending war in the Niger Delta region. 

Niger Delta region comprises of the oil-producing states of Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo and Ondo States.