Senate Committee on Petroleum (Upstream) on Tuesday endorsed the N48bn oil pipeline surveillance contract awarded to a former Niger Delta militant leader, Government Ekpemupolo, also known as Tompolo, by the Federal Government.
Nigerian National Petroleum Corporation Limited (NNPCL) had in September, 2022 awarded the contract to Tantita Security Services Nigeria Limited (TSSNL), a company linked to Tompolo following persistent oil theft.
The Contract totaling about N4bn per month contract, which covers Delta, Ondo, Imo and Rivers and some parts of Bayelsa.
However, Senator Albert Bassey Akpan who chairs the senate committee, while addressing newsmen on Tuesday stated that there was nothing wrong engaging non-state actors to secure oil pipelines in as much as the contract was yielding desired results.
He lamented that oil theft wrecked the country’s oil production capacity and had resulted in the loss of about $2bn this year alone.
He said major export facilities, the Bonny and Forcados Terminals, were shut down for a over seven months due to pipeline vandalism and oil theft.
The Senator, however, submitted that the recent pipeline surveillance contract to address oil theft was yielding positive results as the country’s oil production capacity has increased.
He said, “There are both formal and informal approaches to solving the issue. If that contract was contracted duly and processed, we don’t have any issue with it and if it yields desired outcomes, I don’t think there is anything wrong in it
“We commend the NNPCL for the action. As we speak, the Forcado terminals have restored 500,000 barrels a day to our national production.
“Just about 5 days ago, the first 87,000 barrels a day was received at the Bonny terminals. So, things are getting better.
“This means that the abridged intervention done recently by government have yielded positive results because the production would have been shortened and you could imagine the effect on investment because investors will hold back if they cannot derive maximum profits from their investments.
“The government has not attracted desired investment in the oil and gas industry despite the PIA because what is being produced is being stolen.”
The panel, in its recommendations, said, “Curtailing crude oil theft should be a collective responsibility thereby well-meaning members of the public must be encouraged to report illegal activities and transactions in stolen crude oil that may come to their knowledge from any part of the world.
“Nigeria should seek international financial collaboration to check illegal Letters of Credit used to fund the sale and purchase of Nigeria stolen crude, as such illegal crude sales can only be transacted through the world financial system.”
Kicks as documents for request, approval of N2.2bn in Ministry of Justice missing
Members of Senate Public Accounts Committee were surprised on Tuesday as the Permanent Secretary of Ministry of Justice, Mrs B.E Jeddy said that the documents pertaining to request and approval letters for collection of N2.2 billion Service Wide Vote is missing
The Committee Chaired by Senator Mathew Urhoghide had last month mandated the Ministry of Justice to submit documents relating to the approval of N2.2 billion from Service Wide Vote between 2017-2021.
But, appearing before the lawnmakers on Tuesday, the Permanent Secretary said the Fiance and Account Department in Ministry checked everywhere an the documents could not be seen lamenting that it is quite unfortunate.
She told the lawnmakers that it certain the request was made by the Ministry before the money can be released.
The Permanent Secretary said, ” they have checked the relevant documents, they can’t find it. It is quite unfortunate.
” The Departments of Fiance and Account is responsible. I can assure that this request was made .
” We could not find any document probably as a result of record keeping, they could not find the request and approval letters.”
Disturbed by the submission of the Permanent Secretary, the Chairman said that the Committee is yet to see any letter of request and approval and this will only mean extra budgetary spending..
He said, ” Who gave the approval, we have not seen any letter of approval/request. It only means extra-budgetary spending .
” I think we are magnamus enough in this Committee, what this means is inept, it is not nice that you can not find the approval and request letters. The recommendations of the Committee will not be nice.”
The Committee therefore ordered the Ministry to provide the documents by Thursday next week, December 1, 2022.
