The Nigerian Extractives Industries Transparency Initiative, NEITI, says Nigeria has spent N471 billion on repairs of 7,143 vandalised pipelines in 5 years.
The NEITI Executive Secretary, Ogbonnaya Orji, disclosed this while delivering a keynote address at the ongoing 2023 International Pipeline Technology and Security Conference in Abuja.
According to him, between 2017 to 2021, Nigeria recorded 7,143 cases of pipeline breakages and deliberate vandalization resulting in crude theft and product losses of 208.639 million barrels valued at $12.74 million or N4.325 trillion.
During the same period, Mr Orji said, Nigeria spent N471. 493 billion to either repair or maintain pipelines.
He stated further that Nigeria lost 4.2 billion litres of petroleum products from refineries, valued at $1.84 billion at the rate of 140,000 barrels per day, from 2009 to 2018.
So, the total value of crude losses between 2009 and 2020 is higher than the size of the country’s foreign reserves and almost ten times Nigeria’s oil savings in the Excess Crude Account.
According to him, oil theft is perpetrated mainly through pipeline clamping, illegal connections on major pipelines and exploitation of abandoned oil wellheads.
Others, Mr Orji said, included pipeline breakages, vandalism of key national assets to illegally siphon crude into waiting vessels stationed in strategic terminals.
He said: “From NEITI’s 2021 Oil and Gas Industry Report released recently, the sector accounted for 72.26% of Nigeria’s total export and Government’s foreign exchange, 40.55% of government revenue, and provided 19,171 jobs.
“It is not a matter of debate that despite the strategic contributions, the country is yet to derive optimal benefits from its oil and gas resources due to oil theft and losses through pipeline vandalism, pipeline integrity compromise, outright sabotage, and general insecurity in the region.”
