Reports

Court Strikes Out AGIP Contractors’ Suit Against NNPCL Over Pipeline Surveillance Contract

The Federal High Court in Abuja on Thursday dismissed a lawsuit challenging the awarding of a pipeline surveillance security contract to Tantita Security Services Limited, ruling that the plaintiffs lacked the legal standing to bring the case.

Justice Mohammed Umar struck out the suit, filed by the Incorporated Trustees of the AGIP Indigenous Contractors Association and 43 others, describing the applicants as “busybodies” and “meddlesome interlopers” with no locus standi.

The applicants had alleged that the Nigerian National Petroleum Company Ltd (NNPCL), former CEO Mele Kyari, the Attorney General of the Federation, the Ministry of Defense, and other relevant authorities unlawfully awarded the contract to Tantita, thereby excluding indigenous contractors from Niger Delta oil and gas-producing communities from participating.

Represented in court by Barrister O. Bofede, the plaintiffs argued that NNPCL violated the Nigeria Oil and Gas Content Development Act 2010 by failing to provide them with a fair opportunity to bid. “NNPCL is a private limited liability company that is duty-bound to implement the provisions of the Nigeria Oil and Gas Content Development Act 2010 to the benefit of the plaintiffs,” they contended.

NNPCL, in its counter-affidavit, denied the allegations, describing the claims as “spurious and baseless.” The company highlighted Tantita’s competence, citing its role in boosting national crude oil production, apprehending vessels involved in crude oil theft, and dismantling illegal refineries and pipeline connections.

The company and other respondents had also raised preliminary objections, urging the court to dismiss the suit on the grounds that the applicants lacked locus standi.

In his ruling, Justice Umar agreed, stating: “The 1st to 43rd applicants have not convinced this court that they possess the locus standi or the cause of action to institute this suit, and the Court lacks the jurisdiction to continue to hear this suit. I consider the applicants as meddlesome interlopers and busybodies who have no stake or legal interest to protect in this suit.” The case was therefore struck out.

NNPCL had engaged Tantita Security Services Limited, owned by former Niger Delta militant Tompolo, alongside other third-party security firms to combat crude oil theft across the Niger Delta.

The suit comes amid intensified efforts by NNPCL to tackle oil theft. In 2024, for instance, the company announced the arrest of a tugboat carrying illegally refined Automotive Gas Oil (Diesel) along the Rivers State coast on April 1, with five personnel detained for investigation.

Between March 30 and April 5, 2024, the Niger Delta recorded 155 incidents of crude oil theft, with Rivers, Delta, and Bayelsa states recording the highest number. During this period, 38 suspects were arrested for crude oil theft and sabotage.