FG Spends N12.3bn To Secure Oil Pipelines In 2022

The Federal Government has so far spent N12.3 billion on pipeline protection and maintenance, OduNews reports.

The latest update on pipeline security/maintenance costs obtained from the Nigerian National Petroleum Company Limited showed that N12.43bn was spent by the government through NNPC between January and June this year.

Figures from the oil company indicated that pipeline security/maintenance gulped N1.1bn, N368m and N2.61bn in January, February and March 2022 respectively.

The NNPC spent N498m in May and N8.35bn in June to secure and maintain its pipelines, while the firm subtracted N464m in April from the total amount during the review period.

Nigeria’s crude oil production has continued to slump due to the repeated vandalism of pipelines and attendant theft of humongous volumes of crude.

The N12.43bn spent in the first six months of this year to protect pipelines came as the oil company recently contracted the surveillance of its pipelines to a contractor, a development that elicited diverse reactions.

On August 30, 2022, NNPC said its award of a multi-billion naira pipeline surveillance contract to a former leader of the Movement for the Emancipation of Niger Delta, Government Ekpemupolo, popularly known as Tompolo, was the “right decision.”

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 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.”