The commander, who was granted amnesty in 2009, endorsed hiring Global West Vessel Specialist Agency Ltd. to protect the waterways, something Nigeria's navy and civil authorities appear unable to do.
Before the amnesty, men allied with the ex-militant Government Ekpumopolo carried out attacks and killings in the southern Niger Delta.
Nigeria struggles with endemic graft; analysts say the oil-rich nation has one of the world's most corrupt governments.
The government brokered an amnesty deal with militants, but the $103 million contract raises worries about the influence of former militants.
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