Atiku demands probe of N17.5tn pipeline security spending

Former Vice President Atiku Abubakar has criticised the administration of President Bola Tinubu for spending N17.5tn on pipeline security and related expenditures in a single year, demanding a probe of what he described as a financial scandal and “a moral indictment on the Tinubu administration”.

In a statement issued by the Atiku Media Office on Sunday, the former Vice President noted that the expenditure exceeds 12 years of Nigeria’s fuel subsidy, arguing that it primarily benefits the President’s associates and political allies.

“The report that the Nigerian National Petroleum Company Limited spent a humongous N17.5tn in just 12 months on ‘securing fuel pipelines and others’ stands as one of the most brazen financial scandals in our nation’s history,” Atiku said.

He contrasted this with the N18tn spent on fuel subsidies over 12 years, a programme that cushioned millions of Nigerians, stabilised transport costs, and kept food prices manageable.

According to Atiku, “under President Bola Tinubu, the country has now expended nearly the same amount in a single year on opaque pipeline security contracts awarded to private firms tied to associates and cronies of the President.”

Describing the spending as “grand larceny dressed as public expenditure,” the statement criticised the government for removing petroleum subsidies while channeling massive funds into “energy-security” and “under-recovery” costs.

“In some places, a litre of Premium Motor Spirit now costs over N1,000. Yet, according to NNPCL records, the administration spent N7.13tn on ‘energy-security costs’ to stabilise petrol prices and another N8.67tn on ‘under-recovery,’” the statement said.

It further alleged that these categories are used to obscure the true beneficiaries of the spending.

Atiku called on the Federal Government to disclose the companies awarded these contracts, the scope and deliverables of each project, and urged that the N17.5tn expenditure be subjected to an independent forensic audit.

He also called for a halt to further disbursement until accountability is established.

He posed several questions to the government, including what justifies a 38.7 per cent rise in energy-cost from N6.25tn in 2024 to N8.67tn in 2025; why pipeline security is now more expensive than a decade-long subsidy that served over 200 million Nigerians; and where the audit reports, parliamentary oversight findings, and cost-validation documents are.

Atiku argued that no administration presiding over such fiscal recklessness has the moral authority to demand sacrifices from Nigerians, who continue to grapple with high inflation, surging fuel prices, naira volatility, and widespread hunger.

He added, “Nigerians deserve transparency, not deceit. They deserve leadership, not cronyism. And they deserve a government that places national interest above private enrichment. N17.5tn pipeline-security expenditure is not merely a financial anomaly, it is a moral indictment on the Tinubu administration and a clarion call for full accountability.”

According to NNPCL’s 2024 audited financial statements, the N17.5tn charge to the federation includes energy-security costs of N7.13tn, intended to stabilise petrol prices; under-recovery of N8.67tn, representing the gap between actual import costs and regulated pump prices; and other receivables from the federation amounting to N8.84tn, covering advances and additional security-related costs for oil and gas infrastructure protection.

Part of this expenditure is reportedly allocated to pipeline surveillance, repairs, crude-theft prevention, and broader security operations.

While legitimate energy security spending can be justified to protect critical infrastructure and ensure stable fuel supply, the lack of transparency regarding beneficiaries and contract details raises serious concerns over cronyism and misallocation of resources, especially amid pressing national needs in power, healthcare, education, and infrastructure.

culled from punch