Debts: Indigenous Contractors Kick against Agip-Oando Deal

Blessing Ibunge in Port Harcourt

Indigenous contractors of the Nigeria Agip Oil Company (NAOC) have opposed  the ongoing acquisition of the company by Oando Plc, stressing that it would be inhuman and lack of global best practice to allow the deal sail through without settling all debts owed them by the company.

The contractors also threatened to occupy all facilities belonging to Agip in the Niger Delta if the oil firm did not redeem their arrears of unpaid contract debts.

Speaking under the aegis of Coalition of Indigenous Contractors of Agip (CICA) the contractors decried a situation whereby NAOC would embark on such a deal without first discussing the modalities to pay all their outstanding debts.

The contractors, in a statement signed  in Port Harcourt by its Chairman, Ifeanyichuku Olisa and Secretary, Mr. Felix Alumona respectively, lamented that  NAOC owed its members huge amount of money for jobs they did for the company.

The contractors therefore,  called on President Bola Tinubu to intervene in the matter and ensure that all outstanding debts were paid before the conclusion of the acquisition.

They also appealed to security agencies to prevail on  NAOC and NNPC Limited  to settle the outstanding debts to avoid compelling host communities and other affected stakeholders resorting to self-help.

The contractors said: “We recently heard that NAOC has been acquired by Oando and the acquisition process is ongoing.

“Whilst we hold no objection to the purported acquisition, we are concerned about what happens to the monies NAOC owes all its contractors?

“It also worrisome to hear from NAOC that the other joint venture partners, NNPC and Oando have not consistently remitted their joint venture contributions, cash calls, which invariably has led to humongous sums of money being owed to local contactors, comprising landlords to NAOC facilities, service contractors and general contractors, who provide services to NAOC.”

The contractors  explained that  some of the debts had been owed since 2020, adding that loans were obtained from the banks by contractors to execute the jobs.

“What becomes of the monies being owed these contractors, many of who sought bank loans and invoice discount facilities, and now at serious risk of severe financial losses.

“We call on our ever listening President Bola Tinubu to prevail on NNPC and Oando, to as a matter of save our soul (SOS) intervene and save NAOC contractors from financial losses.

“Government regulatory agencies as well as all security agencies should please prevail seriously on NNPC/Oando to, please save the contractors from impending calamity and to forestall landlord and host community contractors, from resorting to self-help, which would include, but not limited, to ensure the stoppage of all NAOC operations in our host communities,” the contractors added.