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  • Oil & Gas - News
  • Updated: November 07, 2023

7,143 pipeline vandalism cases cost Nigeria N471 billion — NEITI

7,143 pipeline vandalism cases cost Nigeria N471 billion —

The Nigerian Extractives Industries Transparency Initiative (NEITI) has made startling discoveries regarding the scope of pipeline vandalism in Nigeria.

The Executive Secretary of NEITI, Dr. Ogbonnaya Orji, revealed that Nigeria has documented an astounding 7,143 instances of pipeline vandalism in the previous five years. Due to the widespread devastation, N471 billion had to be spent on repairs.

At the 2023 International Pipeline Technology and Security Conference in Abuja, Dr. Orji revealed this information during his keynote speech on pipeline security, oil theft, and their effects on economic growth.

Nigeria saw 7,143 instances of intentional vandalism and pipeline breaks between 2017 and 2021. The theft of 208.639 million barrels of crude oil and product losses resulting from these occurrences totalled $12.74 million, or N4.325 trillion.

The nation had to set aside a sizeable amount of N471.493 billion during that time in order to repair the damages and preserve the integrity of the pipeline.

Empirical data on oil theft and losses, totalling 619.7 million barrels of petroleum, has also been made accessible by NEITI. This concerning amount means that between 2009 and 2020, there will be a financial loss of $46.16 billion, or N16.25 trillion.

Dr Orji went on to say that Nigeria lost 4.2 billion litres of petroleum products from refineries between 2009 and 2018, which is equivalent to $1.84 billion at a daily rate of 140,000 barrels.

The total sum of these losses from 2009 to 2020 is almost ten times greater than Nigeria's Excess Crude Account and exceeds the size of the nation's foreign reserves.

He said that four more illegal tactics in addition to pipeline clamping are the main ways that crude oil is stolen in Nigeria.

These include breaking pipelines, using abandoned oil wellheads for illicit connections, and vandalising vital national infrastructure to divert crude into ships positioned at vital terminals.

Nigeria has struggled to maximise the benefits of its resources despite the oil and gas sector's enormous economic contributions. This is because of the country's widespread oil theft, losses from pipeline vandalism, integrity breaches, sabotage, and regional insecurity.

Orji underlined how urgent it is to address these issues because doing so is essential to restoring investor confidence, fostering economic growth, and fostering industrial trust.

Nigerian oil exploration and exploitation are now in jeopardy since the situation has worsened to the point of a national emergency. It is imperative that these challenges be addressed in order to protect the country's key resources and economic stability.

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