The Nigerian National Petroleum Company Ltd (NNPCL), Mr. Mele Kyari, former NNPCL CEO, and others have countered the Incorporated Trustees of the AGIP Indigenous Contractors Association and others, who allege that the former unlawfully awarded a pipeline surveillance security contract to Tantita Security Services Limited in the oil-rich Niger Delta.
This is contained in NNPCL and Mele Kyari’s counter-affidavit before the Federal High Court, Abuja, exclusively reviewed by Nairametrics.
AGIP contractors, who identify themselves in court as the apex organization representing the interests of indigenous contractors from oil and gas-producing communities in the Niger Delta, had sued the NNPCL, Kyari, and others, alleging an unlawful bidding process regarding the awarded pipeline surveillance security contract to Tantita.
Applicant’s Allegations
Nairametrics previously reported that the Agip Contractors stated that sometime in 2020, the NNPCL and Kyari allegedly awarded a pipeline surveillance security contract to Tantita Security Services Limited and others without following due process, particularly the provisions of Section 15 of the Nigerian Oil and Gas Industry Content Development Act 2010.
The plaintiffs claims that this was despite receiving several letters of interest from the 1st to 7th plaintiffs (AGIP contractors and other indigenous companies and directors, namely Eliax Bleet Nig Limited, Tamak Plan Oil & Gas Ltd, De-friyo Marine Services Limited, Kalas Agai Nimitenbofa, Chief Taylor Amakiri, and Joclemsco Nig Ltd), requesting to be included in the bidding process in line with the Act.
The plaintiffs alleged that the NNPCL deliberately violated relevant laws by excluding them from participating in and benefiting from the bidding and award processes of the aforementioned contract, contrary to the provisions of the Content Act.
They further alleged that “the surveillance security contracts awarded by the 1st and 2nd respondents (NNPCL and Kyari) were done in complete violation of the laws governing the oil and gas industry, due to their personal interests; these contracts were awarded to their cronies and were shared among the staff of the 1st and 2nd respondents, allowing them to nominate companies of their choice to benefit, while excluding the plaintiffs, who are qualified to perform such duties as Nigerian companies,” he submitted.
The plaintiffs’ lawyer, R. U. Afangide Esq., prayed the Court to, among other things, compel the NNPCL to give full and fair opportunity to the plaintiffs to benefit in the bidding/award of the surveillance security contracts initially awarded to Tantita Security Services Limited and others.
NNPCL, Mele Kyari Counter Agip Contractors
Responding to the plaintiffs’ allegations, the NNPCL and Kyari filed associated processes, including a counter-affidavit in opposition to their claims.
- In the counter-affidavit deposed to by Mr. Suleiman Kuku Usman, NNPCL Lead Counsel, Community Claims, and seen by Nairametrics, the Court was urged to consider the plaintiffs’ assertions as “untrue, incorrect, and misconstrued”.
- The official added that the mere fact that the plaintiffs allegedly wrote letters of interest to the NNPCL does not automatically confer on them any exclusive right or eligibility to be awarded the Pipeline Surveillance Contract.
“The NNPC Ltd, by virtue of Section 53(1), (7) & (8) of the Petroleum Industry Act, is a private limited liability company registered under the Companies and Allied Matters Act and empowered to conduct its affairs on a commercial basis in a profitable and efficient manner without recourse to government funds, to operate as a Companies and Allied Matters Act entity, and required to pay all fees, rents, royalties, and taxes to the Government like any other company in Nigeria,” the official added.
The official stressed that by virtue of Section 64(a) of the Petroleum Industry Act, 2021, the NNPCL, as a private limited liability company like every other private company, is totally exempted from the provisions of the Public Procurement Act and the Fiscal Responsibility Act.
- The NNPCL official highlighted that the contractors (including Tantita Security Services Ltd) engaged for the Pipeline Surveillance Security Contract by the NNPCL are fully indigenously owned companies with the requisite competence and capacity to effectively do the job.
- He added that the development was in line with the provisions of Section 15 of the Nigerian Oil and Gas Industry Content Development Act 2010 and that no provision of the Act whatsoever was violated, as the contracts were awarded strictly in accordance with the relevant provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, and as directed by the Federal Executive Council.
- The official denied the plaintiffs’ allegations of awarding the surveillance contract to their “cronies”, describing them as “spurious and baseless”.
He added that the competence of Tantita and others is further confirmed by the increase in national crude oil production, as well as the successes recorded, including the arrest of vessels involved in crude oil theft and the dismantling and removal of illegal refineries and connections on the oil pipelines.
The Court was urged to dismiss the suit with substantial costs against the plaintiffs.
What Transpired in Court
At the resumed court session on June 11, 2025, Bofede Okperu, Esq., counsel for all the plaintiffs, told Justice G. Umar that some other parties sued (aside from NNPCL and Mele Kyari) were not in court and were not aware of the date.
- He then asked for another date for hearing so that hearing notices could be served on the parties that were not in court.
- Counsel for the NNPCL and Kyari, including the Attorney General of the Federation, Solomon Umoh, SAN, and Prof. Roland Otaru, SAN, were not opposed to the call for adjournment.
- The judge subsequently adjourned the case to July 7, 2025, for hearing at 11 a.m.
The court also ordered that hearing notices be issued and served on all the defendants not present in court.
Backstory
NNPC Limited had engaged Tantita Security Services Limited and other third-party security firms to help in the fight against crude oil theft in the country.
Nairametrics reports that Tantita Security Services is owned by former Niger Delta militant Tompolo.
- The suit comes amid the NNPCL’s fight against oil theft.
- In 2024, the NNPCL announced the arrest of a tugboat loaded with an unspecified quantity of illegally refined Automotive Gas Oil (Diesel) along the coastal area of Rivers State on April 1, 2024.
- The oil giant announced the arrest during its weekly “Energy and You” program, stating that five personnel manning the boat were being interrogated by the relevant security agencies.
- The arrest of the vessel was just one of 155 incidents of crude oil theft recorded in the Niger Delta region between March 30 and April 5, 2024.
According to the report, Rivers, Delta, and Bayelsa states recorded the most incidents of crude oil theft during that week. During the period, 38 suspects were arrested on allegations of crude oil theft and sabotage.
