AGIP contractors sue NNPC over alleged unlawful security contract to Tantita Security

The Incorporated Trustees of the AGIP Indigenous Contractors Association, along with six other plaintiffs, have taken legal action against the Nigerian National Petroleum Company Limited (NNPCL) and its CEO, Mr. Kyari Mele, over the awarding of a pipeline surveillance contract to Tantita Security Services Limited.

The plaintiffs allege the contract was awarded unlawfully and without due process.

In the suit, filed under case number FHC/ABJ/CS/1021/2024, the AGIP contractors—alongside Eliax Bleet Nig Ltd, Tamak Plan Oil & Gas Ltd, De-friyo Marine Services Ltd, Chief Taylor Amakiri, Joclemsco Nig Ltd, and Kalas Agai Nimitenbofa—claim that the NNPCL favored its “cronies” when awarding the pipeline surveillance contract to Tantita.

The contractors, representing indigenous companies from oil-producing communities in the Niger Delta, assert that they were unjustly excluded from the bidding process.

The plaintiffs argue that the NNPCL and Mr. Mele Kyari, in 2020, violated Section 15 of the Nigerian Oil and Gas Industry Content Development Act 2010, which mandates a transparent bidding process for Nigerian companies.

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According to an affidavit from Mr. Kalas Agai Nimitenbofa, the Executive Officer of AGIP Contractors, the NNPCL ignored multiple letters of interest from indigenous companies, opting instead to award the contract to Tantita Security, a company allegedly linked to NNPCL staff.

The suit further accuses the Nigerian Content Development and Monitoring Board (NCDMB) of failing to fulfill its oversight role.

The plaintiffs claim that the NCDMB did not monitor or enforce the provisions of the Content Development Act, allowing NNPCL to exclude qualified indigenous contractors from the contract bidding process.

The disputed contract comes as part of NNPCL’s ongoing efforts to combat crude oil theft in the Niger Delta region. Tantita Security Services, owned by former Niger Delta militant Tompolo, has been engaged in this fight since 2020.

However, the plaintiffs argue that NNPCL’s award process lacked fairness and transparency, with decisions benefiting personal interests over the qualified Nigerian companies.

The suit comes amid escalating concerns about oil theft in the Niger Delta. NNPCL recently reported the arrest of a vessel involved in crude oil theft, among 155 similar incidents recorded between March 30 and April 5, 2024.

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Oil theft has been a critical issue for Nigeria, significantly impacting oil revenues and security in the region.

Tantita Security Services, engaged by NNPCL for its pipeline surveillance operations, has played a key role in cracking down on such incidents.

However, the AGIP contractors argue that their exclusion from this lucrative contract violates their rights as indigenous operators under the Nigerian Oil and Gas Content Act.

The case is set for hearing on October 14, 2024, before Justice Inyang Ekwo at the Federal High Court in Abuja. Legal experts believe this case will raise critical questions about the transparency of NNPCL’s contract awards and the enforcement of local content laws in Nigeria’s oil and gas sector.

The respondents, which include the NNPCL, Mr. Kyari Mele, the Attorney General, the NCDMB, the Ministry of Defense, and the Chief of Defense Staff, are expected to file counter-affidavits and other legal responses in the coming days.

The outcome of the case could have far-reaching implications for how contracts are awarded in Nigeria’s oil and gas industry, especially in ensuring fair representation for local companies.

The hearing will determine whether the NNPCL’s actions violated local content laws and whether the plaintiffs can reclaim their stake in the pipeline surveillance contracts.