The Federal High Court Abuja on Thursday quashed a pipeline surveillance security contract bidding process suit filed against the Nigerian National Petroleum Company Ltd (NNPCL), Mr. Mele Kyari, former NNPCL CEO, and others by the Incorporated Trustees of the AGIP Indigenous Contractors Association and 43 others.
Justice Mohammed Umar struck out the case, describing the applicants as “busybodies” and “meddlesome interlopers” who lacked the legal right (locus standi) to commence the suit.
Nairametrics previously reported that AGIP had alleged that the NNPCL and other relevant authorities unlawfully awarded a pipeline surveillance security contract to Tantita Security Services Limited in the oil-rich Niger Delta.
Legal Dispute
AGIP contractors, who identified themselves in court as the apex organisation representing the interests of indigenous contractors from oil and gas-producing communities in the Niger Delta, had sued the NNPCL, Kyari, the Attorney General of the Federation, the Ministry of Defense, and others, alleging an unlawful bidding process regarding the awarded pipeline surveillance security contract to Tantita.
- Their legal team, represented in court proceedings by Barrister O. Bofede, insisted that NNPCL and Mele Kyari were duty-bound, having received letters of interest from the clients, to give the plaintiffs full and fair opportunity to participate in the bidding process as stipulated by law regarding the surveillance contract awarded to Tantita.
“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,” the plaintiffs argued.
- 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 said contract, contrary to the provisions of the Content Act.
In the NNPCL counter-affidavit, the company denied the plaintiffs’ allegations of awarding the surveillance contract to their “cronies,” describing the claims as “spurious and baseless.”
- NNPCL 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.
- Furthermore, NNPCL and others filed preliminary objections, asking the court to hold that the applicants lacked the requisite locus standi to institute the suit.
What the Court Said
Passing his verdict on Thursday, Presiding Justice Umar found that the applicants, numbering up to 43, lack the legal right (locus standi) to institute the action.
“Finally, I am of the view that 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,” he said.
- The judge added, “I consider the applicants as meddlesome interlopers and busybodies who have no stake or legal interest to protect in this suit.”
- The judge subsequently struck out the action for lack of locus standi and lack of cause of action by the applicants.
Backstory
NNPCL 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 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 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 crude oil theft incidents during that week. During the period, 38 suspects were arrested on allegations of crude oil theft and sabotage.