How NNPC Chief, Mele Kyari Secretly Allocated Pipeline Control To Northern Oil ‘Cabals’

The Nigerian National Petroleum Corporation (NNPC) Limited’s Managing Director, Mele Kyari, has surreptitiously granted the rehabilitation contracts for Nigeria’s pipelines to a select group of four oil enterprises, including two retail businesses.

This action is perceived as the indirect transfer of pipeline control to these retailers, potentially enabling them to exploit other retail outlets and the Nigerian populace.

The beneficiaries of these lucrative contracts, intended to expedite the crude oil flow to refineries and its byproducts’ return, are Oilserv Limited, A.A RANO Nigeria Limited, Macready Oil & Gas Service Company Limited, and MRS Oil Nigeria Plc.

Despite the end of Muhammadu Buhari’s nepotistic presidency, rumors persist that the Northern cabal continues to dominate the petroleum sector. This belief is reinforced by the fact that A.A.Rano Nigeria Limited and MRS Oil Nigeria Plc, two retail businesses owned by Northerners Auwalu Rano and Sayyu Dantata respectively, were among the contract recipients.

According to People’s Gazette, these businesses, primarily involved in petroleum product trading, have repeatedly received preferential treatment from the NNPC GMD, such as selection for the crude-for-fuel swap contracts in 2021, serving the country’s motor and jet fuel needs. The recent pipeline contracts further bolster the belief that the Northern cabal remains influential post-Buhari era.

The contracts were given on a LOT basis, with MRS Oil obtaining the most lucrative, LOT 4, overseeing depots in the South-West, and A.A Rano securing LOT 2, controlling the South-South region. Critics argue that this move enhances the North’s power and control over Nigeria, particularly in potential supply crises or shortages.

Industry experts have condemned the contract awards as excessive power concentration in retail businesses, which may backfire eventually. Kelvin Atafiri, CEO of Cavazanni Human Capital Limited, confirmed these concerns, emphasizing MRS Oil’s increased influence in the South-West region.

The secretive manner of awarding the contracts supports the allegations of the cabal’s ongoing covert operations. While the NNPC openly defended a hefty payment to ex-militant Government Ekpemupolo (Tompolo) for pipeline protection in 2022, it remains silent on the contract awards to A.A. Rano and MRS Oil.

Neither the State House nor the NNPC boss, Mr. Kyari, commented on whether President Bola Tinubu, who also serves as the petroleum minister, was informed about the discreet contracts granted to A.A. Rano and MRS Oil.