EXCLUSIVE: NNPCL and Tantita Security face legal battle over alleged “cronies” contract

The Incorporated Trustees of the AGIP Indigenous Contractors Association and six others have sued the Nigerian National Petroleum Company Ltd (NNPCL), Mr. Kyari Mele, NNPCL CEO, and others, alleging they unlawfully awarded a pipeline surveillance security contract to Tantita Security Services Limited.

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, allege in court documents marked FHC/ABJ/CS/1021/2024 that the NNPCL awarded the contract to their “cronies.”

AGIP contractors identify themselves in court as the apex organization representing the interests of indigenous contractors from oil and gas-providing communities in the Niger Delta.

Applicant’s Claims
Joined as respondents in the suit dated July 23, 2024, are the NNPCL, Mr. Kyari Mele, the Attorney General and Minister of Justice of the Federation, the Nigerian Content Development and Monitoring Board (NCDMB), Tantita Security Services Limited, the Ministry of Defense, and the Chief of Defense Staff.

In an affidavit deposed by the Executive Officer of AGIP contractors, Mr. Kalas Agai Nimitenbofa, exclusively seen by Nairametrics, he 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 the due process of law, particularly the provisions of Section 15 of the Nigerian Oil and Gas Industry Development Act 2010, despite receiving several letters of interest from the plaintiffs to be included in the bidding process in line with the provisions of the Content Development Act 2010.

He claimed that the NNPCL awarded the contract to Tantita—a company in which he believes NNPC staff allegedly have a personal interest.

He alleged that the NNPCL deliberately violated relevant laws by excluding the plaintiffs from participating in and benefiting from the bidding and award processes of the aforementioned contract, in line with the provisions of the Content Act, which states: “All partners and alliance partners in the oil and gas sector shall maintain a bidding process in acquiring goods and services and shall give all Nigerian companies full and fair opportunity in the bidding process.”

Furthermore, he accused the NCDMB of remaining inactive in performing its constitutionally mandated responsibility of monitoring and guiding the complete implementation of the provisions of the Oil and Gas Industry Act 2010.

“It has been observed that the surveillance security contracts awarded by the 1st and 2nd respondents 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 for the following reliefs against the respondents:

“A declaration that the 1st Respondent (NNPCL) is duty-bound as a private company to comply with the provisions of the Nigerian Oil & Gas Industry Content Development Act 2010.”
“A declaration that the 4th Respondent (NCDMB) failed in its responsibility to monitor, guide, and implement the provisions of the Act to the benefit of the plaintiffs and other Nigerians.”
“An order compelling the 1st Respondent (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.”
“An order compelling the 1st Respondent (NNPCL) to maintain a bidding process that will include the plaintiffs to benefit in the bidding/award processes of the surveillance security contract in their organization.”
“An order compelling the 1st Respondent (NNPCL) to comply with the provisions of the Nigerian Oil & Gas Industry Content Development Act 2010.”
“An order compelling the Chief of Defense Staff to compel the 1st and 2nd Respondents to comply with the provisions of the Oil & Gas Content Development Act 2010 to include the plaintiffs in the bidding and award processes of the surveillance security contracts.”

The plaintiff urged Justice Inyang Ekwo to grant their relief.

Nairametrics gathered that the hearing on the plaintiffs’ case is slated for October 14, 2024.

Nairametrics reports that the matter is to be freshly disputed, meaning the legal team of the respondents will be required to respond to the plaintiffs’ allegations by way of counter-affidavit, preliminary objection, and/or any other motion or processes.

What You Should Know
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.

Six months ago, 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.