A bombshell allegation has rocked the Nigerian oil industry after Tantita Security Services Nigeria Limited, a private security contractor, claimed major oil companies are patronizing illegal refineries in the Niger Delta.
The accusation came during a presentation at the ongoing Nigeria Oil and Gas Energy Week Conference in Abuja. According to Tantita, oil companies are not just competing with, but actively funding, these illicit operations.
The security firm, owned by a former militant leader, Government Ekpemukpolo, aka Tompolo, alleged that the patronage is a key reason why diesel prices remain high despite a government crackdown on illegal refineries.
Tantita, headquartered in Warri, currently offers security services to the Nigerian National Petroleum Company Limited.
Speaking as a panellist at the session titled, “Exploring Nigerian Content Solutions to Meet Energy Demand,” the Executive Director, Operations and Technical, Tantita Security Services, Capt. Warredi Enisuoh said illegal refineries produce diesel in large volumes and their customers include many downstream operators.
He said the outfits get patronage from not just smugglers, but also from oil companies, stressing that the clampdown of these refineries by Tantita and other security agencies was the reason diesel prices had been on the increase.
“Why is there no scarcity of diesel while there is scarcity of PMS (Premium Motor Spirit, popularly called petrol)? The story is simple, most of the diesel you buy is produced by the communities.
“About 90 per cent of the diesel in the fuel stations is produced by the communities. It will also interest you to know that even the oil companies patronise the local communities. Don’t let anybody deceive you, they (oil companies) also patronise the local communities,” he declared.
He insisted that if not for the interventions of security agencies such as his, the production of diesel illegally would continue to increase.
“The reason why the price of diesel is high today is because of the works of private security companies like my company Tantita Security Services.
“This is because we have been able to somehow cut down on a lot of the businesses of the illegal refineries. This is why you see the cost of diesel going up,” he stated.
The oil companies present at the conference did not contest these accusations. This silence is seen by some as a tacit admission of guilt. However, independent verification of Tantita’s claims is needed.
The allegation, if true, would be a major scandal. Oil companies operating in the Niger Delta have long been criticized for environmental pollution and neglect of local communities. Funding illegal refineries would exacerbate these issues, further polluting the environment and potentially fueling violence in the region.
The motives behind such patronage are unclear. Tantita suggests that illegal refineries offer cheaper diesel, potentially increasing oil companies’ profit margins. Alternatively, the oil majors might be turning to these illicit sources to meet production quotas or compensate for shortfalls in their own refining operations.
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