In order to repay cash call arrears, the Federal Government has so far paid five foreign oil companies a total of $4.04 billion. This year, the Federal Government has also spent N12.43 billion on pipeline maintenance and protection.
Due to ongoing pipeline vandalism and massive crude oil theft, Nigeria’s crude oil production has continued to decline.
The N12.43 billion spent on pipeline protection in the first half of this year coincided with the oil corporation recently hiring a contractor to monitor its pipelines, a move that sparked a range of responses.
A number of Niger Delta organizations have expressed concerns over the pipeline surveillance contract, which is purportedly worth N48 billion year (or N4 billion monthly).
