The Federal Government has said the pipeline surveillance contract awarded to private contractors was “the right decision”.

Group Chief Executive Officer (GCEO), Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, said yesterday at the 49th session of the State House briefing organised by the presidential communication team.

The contract renewal, reportedly valued at N48 billion yearly (N4billion monthly), was awarded to the ex-militant warlord, Mr. Government Ekpemupolo, otherwise known as Tompolo, by the NNPCL.

Last week, the Amalgamated Arewa Youth Groups demanded termination of the contract.

Pipeline protection contracts were first awarded to companies owned by former Niger Delta militants in 2011.

Read Also; Tompolo’s surveillance contract

On the contract, the NNPC chief said there was an urgent need to involve private entities and community stakeholders in end-to-end pipeline surveillance to support security agencies.

Kyari said though the Federal Government was not dealing directly with the former warlord, it had signed a contract with a company in which Tompolo has interests.

“We need private contractors to man the right of way to these pipelines. So, we put up a framework for contractors to come and bid and they were selected through a tender process. And we believe we made the right decision,” he said.

Speaking further on vandalism and petroleum products theft, Kyari said the shutting of pipelines  was deliberate, though it has affected the operations of the business and led to losses.

He said NNPCL has also borrowed $1 billion from the African Export-Import Bank (Afreximbank) to fix the country’s refineries.

According to him, the lenders tied conditions for giving out the loan to the productivity of the refineries for them to recoup their money.