While Nigeria Struggles to Produce Enough Oil, Vandals are Expanding their Operations From the Limited Supply

While Nigeria Struggles to Produce Enough Oil, Vandals are Expanding their Operations From the Limited Supply

  • Conversations on how to put an end to the destruction of pipelines have been a serious conversation for the federal government over the years
  • In 2020 alone, sabotage attacks on pipelines cost the nation about N33.5 billion in 2020 with NNPC calling for communities to do more
  • According to NNPC in two years, the repair of pipelines and other facilities cost N15 billion; while security and maintenance, N8.9 billion; and pipeline management cost, N5.1 billion

A report has revealed the Nigerian National Petroleum Corporation recorded 151 pipeline vandalism occurrences in the first three months of 2021.

According to Vanguard, this is a 26.5 percent increase over the 111 pipeline points recorded in the same time of 2020.

During the three-month period under consideration, the month of March 2021 had the largest number of reports of vandalism, with 70 pipeline points.

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Nigeria struggles to produce enough crude
Oil pipelines Credit: Pius Utomi Ekpei/AFP
Source: Getty Images

The incidents occurred in Mosimi, Kaduna and Port Harcourt areas.

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A breakdown of the incidents shows the Mosimi tops the list of areas most affected by pipeline vandals in the first quarter of 2021, with 45 percent.

Port Harcourt and Kaduna followed with 40.3 percent, and 15 percent respectively.

Lamenting the damage NNPC in its May 2021 Monthly Financial and Operation Report (MFOR), noted that products theft and vandalism have continued to destroy value, leaving NNPC in a disadvantaged competitive position.

The report noted:

" 545 vandalized points were recorded between May 2020 and May 2021. The NNPC has worked diligently, in collaboration with local communities and other stakeholders, to reduce, and eventually eliminate, this hazard."

Nigeria spends N60billion annually to repair vandalized pipelines

The federal government says it spends N60billion every year to repair and maintain vandalized oil pipelines in Nigeria.

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The minister of Information and culture, Alhaji Lai Mohammed disclosed this at the town hall meeting on protecting oil and gas infrastructure attended by a Legit.ng reporter in the Federal Capital Territory, Abuja

The minister also revealed that Nigeria loses an average of 200,000 barrels per day to the wanton damage to pipelines and other oil and gas facilities.

Source: Legit.ng

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