Nigeria’s oil industry is grappling with a severe challenge as its aging crude pipelines, many of which were built in the 1960s and 1970s, have become highly vulnerable to theft and vandalism. This critical issue was brought to light by the Minister of State for Petroleum Resources, Heineken Lokpobiri, during the 2024 Energy and Labour Summit in Abuja.
Lokpobiri revealed that the deteriorating condition of these pipelines, which have exceeded their intended lifespan, is a major contributor to the ease of oil theft. “The reason why pipeline vandalism is very easy to do is because the pipelines have all expired; they are completely corroded,” he stated.
The Minister stressed that the state of these pipelines poses a significant obstacle to Nigeria’s efforts to boost crude oil production. Even with an increase in production to over 1.7 million barrels per day, the challenge of transporting the oil to terminals remains formidable due to the poor condition of the pipelines.
Financial constraints further complicate the issue. Lokpobiri pointed out that the Nigerian National Petroleum Company Limited (NNPCL) lacks the necessary funds to replace the outdated infrastructure. “NNPC will speak for themselves whether they have the money to be able to do that, and I don’t think they have,” he said.
To address this pressing issue, Lokpobiri proposed a public-private partnership (PPP) model, emphasizing the need for private sector involvement to rebuild and modernize the nation’s oil transportation network. “That is why we have to go for the global model – PPP. We have to get the private sector to come in,” he urged.
