NASS Backs Tantita Contract, Dismisses Petitions As Oil Output Rises To 1.8m bpd

NASS Backs Tantita Contract, Dismisses Petitions As Oil Output Rises To 1.8m bpd

Lawmakers endorse pipeline surveillance deal, citing improved security and crude output growth to 1.8 million bpd from previous lows.

The joint Committees on Petroleum Resources of the National Assembly on Wednesday rejected three petitions challenging the exclusive pipeline surveillance contract and simultaneously expressed strong confidence in Tantita Security Services, security agencies, and the NNPCL for their roles in reviving Nigeria’s oil production.

Available data indicated that crude oil output has risen to approximately 1.8 million barrels per day as of April, up significantly from around 900,000 barrels per day recorded in 2022 when the surveillance contract was initiated.

This decision followed a motion presented by the Chairman of the House Committee on Petroleum Resources (Midstream), Henry Okojie, during a one-day parliamentary roundtable focused on pipeline security and efforts to combat crude oil theft.

Okojie noted that Tantita and relevant security agencies have made substantial progress in safeguarding the nation’s oil infrastructure, which has in turn boosted national oil revenues.

At the roundtable, the Speaker of the House of Representatives, Abbas Tajudeen emphasized that ongoing geopolitical tensions in the Middle East and the prolonged Russia-Ukraine conflict have heightened the urgency for alternative energy solutions.

He added that crude oil remains the world’s dominant primary energy source, particularly in transportation, where it powers about 95 percent of vehicles, aircraft, and ships.

He further explained that recent global disruptions, including the closure of the Strait of Hormuz, have triggered price hikes and supply shortages, posing serious risks to Nigeria’s economic stability.

He stressed the country must respond decisively, noting the roundtable reflects the National Assembly’s readiness to take the lead.

According to the Speaker, understanding the need for the surveillance contract requires acknowledging the difficult history of Nigeria’s oil industry.

While petroleum discovery has generated significant foreign exchange, it has also caused environmental damage and social unrest.

He pointed out that the Niger Delta has long experienced agitation, often leading to pipeline vandalism, oil theft, and illegal refining, fueled by community desperation and weak enforcement systems that created instability in the sector.

At one point, he said Nigeria was losing billions of dollars annually, with between 10 and 30 percent of crude production lost to theft an issue that threatened national revenue and undermined the country’s credibility as a reliable oil producer.

It was against this backdrop that the federal government introduced the pipeline surveillance contract, incorporating private security firms and community-based participation to protect oil infrastructure.

These measures, he explained, were based on the understanding that effective protection of pipelines is impossible without the cooperation of host communities.

The collaboration between private surveillance operators, security agencies, and local communities has since led to notable improvements in daily production levels.

The Speaker highlighted clear evidence of progress, stating that many illegal tapping points have been dismantled, production has increased significantly, and oil deliveries to export terminals are nearing full recovery compared to past losses when output dropped to as low as 700,000 barrels per day.

He added that current production levels of about 1.8 million barrels per day are largely attributable to these surveillance efforts.

Additionally, the initiative has created thousands of jobs for youths in the Niger Delta, many of whom were previously involved in agitation, offering them lawful means of livelihood and involving them directly in securing oil assets.

Despite these gains, he acknowledged that challenges remain, particularly in areas such as accountability, transparency, and the effectiveness of certain surveillance mechanisms.

He noted that crude oil theft still persists at worrying levels in some instances, highlighting the need for sustained oversight and reform.

He reaffirmed that the National Assembly has consistently taken proactive steps to address challenges in the oil sector through legislation, oversight, and budgetary measures aimed at strengthening Nigeria’s response to threats.

According to him, laws such as the Petroleum Production and Distribution (Anti-Sabotage) Act have been enacted and reviewed to curb pipeline vandalism and impose stricter penalties.

He also noted efforts to strengthen institutions like the National Oil Spill Detection and Response Agency (NOSDRA), emphasizing the importance of enhanced environmental monitoring and accountability.

These measures, he said, stem from comprehensive policy initiatives made possible by the enactment of the Petroleum Industry Act (PIA).

Key provisions, including the Host Community Development Trust, have made corporate social responsibility mandatory and ensured that host communities benefit financially from oil sector activities.

He explained the law also introduced a system of shared responsibility, where communities risk losing their annual benefits if vandalism occurs within their areas, thereby encouraging them to protect oil infrastructure.

The Speaker added that the 10th National Assembly has continued to strengthen the gains of the PIA through strict oversight and implementation, as well as investigative hearings on oil theft aimed at closing legal gaps exploited by criminals.

He further stated that the Assembly has fulfilled its constitutional duties by examining aspects of the surveillance contract, approving necessary funding for pipeline security, and categorizing crude oil theft as both an economic and national security issue requiring coordinated multi-agency action.

In summary, he stressed that tackling oil theft requires a collective effort involving government, host communities, security agencies, and private sector participants.

He described the roundtable as an opportunity to build on the successes of the surveillance contract while addressing existing shortcomings.

He called for a review of the current pipeline security framework, stronger transparency and accountability systems, deeper community involvement, and updated legislative approaches to reflect evolving realities in the global oil and gas sector.

The Speaker concluded by urging stakeholders to view Nigeria’s oil industry as a story of resilience and opportunity, advocating a future where pipelines symbolize shared prosperity, host communities are empowered partners, and oil wealth drives sustainable national development.

He noted that with instability in the Middle East and shifting global energy dynamics, Nigeria has a chance to position itself as a reliable energy supplier.