PWA Demands Inclusive Pipeline Surveillance, Calls For Contract Audit

A leading advocacy group in Nigeria, the People’s Wellbeing Association, PWA, has called for a forensic audit of the country’s pipeline surveillance contract, citing concerns over compliance with the Petroleum Industry Act and the exclusion of host communities.

The group said the current arrangement, awarded by the Nigerian National Petroleum Company Limited to Tantita Security Services Nigeria Limited in 2022, should be reviewed to ensure broader participation, transparency, and fairness across oil-producing communities.

Nigeria has for years faced persistent crude oil theft, pipeline vandalism, and production losses in the Niger Delta, with the situation at different times significantly affecting national revenue and output.

The pipeline surveillance initiative was introduced in 2022 as part of federal efforts to curb these challenges and stabilise crude production through specialised private security operations familiar with the region.

Since the commencement of operations, authorities and industry operators have at various times reported improvements in crude oil output and a reduction in pipeline vandalism along some corridors. However, the arrangement has continued to generate debate over its structure, inclusiveness, and governance.

The contract, valued at about ₦48 billion annually, was designed to secure critical oil infrastructure and reduce losses from illegal bunkering activities in the Niger Delta.

Speaking in a statement issued in Abuja on Wednesday, the Head of Communication Unit of PWA, Abba Abubakar, described the current framework as skewed and monopolistic, alleging that it concentrates opportunities in the hands of a few actors while excluding several host communities.

He said the development runs contrary to provisions of the Petroleum Industry Act, particularly sections that emphasise the direct involvement of host communities in the protection of oil facilities located within their domains.

“The current pipeline surveillance contract is a violation of the Petroleum Industry Act about the effective participation of host communities in protecting oil facilities located in their domain,” he said.

Abubakar added that pipeline security should be structured to allow indigenous stakeholders across oil-producing ethnic nationalities and affected communities to actively participate in safeguarding oil infrastructure in their areas.

According to him, the present arrangement reflects an unhealthy concentration of opportunity and influence, leaving many stakeholders without meaningful inclusion in the surveillance framework.

He further noted that the exclusion of several oil-producing communities has created resentment and undermined unity in the Niger Delta.

Abubakar also expressed concern that despite significant financial commitments to pipeline surveillance over the years, Nigeria’s crude oil production remains below expectations.

The PWA spokesman renewed calls for a comprehensive forensic audit of the ₦48 billion annual pipeline surveillance contract, stressing that greater accountability, transparency, and inclusiveness are necessary in the management of critical national oil assets.