Reps panel recommend PINL pipeline contract extension, dismiss petition

The House of Representatives Committee on Host Communities has recommended the extension of Pipeline Infrastructure Nigeria Limited’s surveillance contract after its sub-committee found no evidence to substantiate allegations of financial misconduct and improper contract implementation against the company and its Managing Director, Dr Osahon Okunbor.

The committee also passed a vote of confidence in President Bola Tinubu, the management of NNPC Limited, PINL and Okunbor, citing reported improvements in pipeline security, crude oil evacuation and production.

The resolutions followed the adoption of a sub-committee’s report at a special sitting of the committee on Tuesday.

The report recommended that the petition against PINL be dismissed and that further investigation into the allegations be discontinued.

The petition, dated September 5, 2026, was submitted by the Niger Delta Oil-Producing Communities Reform Movement, which accused PINL of improper contract implementation, alleged mismanagement of contract funds, questionable personal expenditure by its managing director and neglect of surveillance personnel.

The petitioners also sought a forensic review of the company’s finances.

However, the subcommittee reported that the petitioners failed to appear before it despite invitations issued on September 14 and 22 and October 5.

It said they neither sent representatives nor provided documentary evidence to substantiate their claims.

PINL appeared before the subcommittee and submitted a written report titled “The impact of PINL operations on oil production and stability of the Niger Delta,” alongside geotagged photographs in support of its account of operations.

Based on the material presented, the subcommittee concluded that the allegations against the company and Okunbor had not been substantiated.

It subsequently recommended that the petition be dismissed and PINL’s contribution to pipeline protection be acknowledged.

The report also proposed a vote of confidence in the National Security Adviser, NNPC Limited’s management and the pipeline surveillance contractors covered by the inquiry.

A major issue highlighted in the report was the reported increase in crude oil reaching the Bonny Terminal through the Trans Niger Pipeline.

According to figures submitted by PINL, the proportion of crude oil reaching the terminal rose from three per cent in May 2022 to 98 per cent in September 2026.

The sub-committee also reported that Oil Mining Lease 11, “which had remained shut in for 18 months, resumed operations within 90 days of PINL’s engagement.”

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It further cited the remediation of 2,049 illegal connections and the destruction of 1,010 illegal refinery clusters as part of the company’s reported operational achievements.

PINL said its operations, which began in August 2022, covered 215 host communities and involved more than 35,600 surveillance guards.

The company also listed its operational assets as 28 forward bases, 130 boats, 175 vehicles and 25 drones, supported by 454 personnel from government security agencies.

On community development, the report noted that PINL had provided more than 5,000 scholarships, organised skills training for over 4,000 women and girls, and distributed flood relief to residents of more than 10 communities in Rivers State.

The committee commended “NNPC Limited’s management for supporting pipeline security operations,” and urged PINL to “sustain its engagement with host communities while paying greater attention to the welfare of surveillance personnel.”

The recommendation to extend the contract comes as Nigeria continues efforts to curb crude oil theft, secure petroleum infrastructure and increase production from assets affected by vandalism, illegal connections and disruptions to operations.

Crude oil remains a major source of government revenue and foreign exchange, making the protection of pipelines and export terminals central to the country’s economic and energy security objectives.

Production figures attributed to the Nigerian Upstream Petroleum Regulatory Commission put Nigeria’s average crude oil output at approximately 1.39 million barrels per day in the first quarter of 2026 and 1.53 million barrels per day in the second quarter.

Output reportedly stood at about 1.50 million barrels per day in August, rising to approximately 1.68 million barrels per day when condensates were included.

The figures nevertheless remained below the 2026 budget benchmark of 1.84 million barrels per day, highlighting the challenge of translating improved security into sustained production growth.

The subcommittee’s recommendation to extend PINL’s contract is expected to be considered by the full House.

Until the report is adopted and the relevant authorities take action, the proposed extension remains a recommendation rather than a final decision.

The findings on the petition were based on the evidence presented during the sub-committee’s proceedings, including PINL’s submission and the petitioners’ failure to appear.