Nigeria Spends N60bn Annually On Vandalized Pipelines

 Nigeria Spends N60bn Annually On Vandalized Pipelines

Nigeria losses an average of 200,000 barrels per day to the destruction of oil pipelines. This loss amounts to a total of 60 billion spent annually on repair and maintenance.

The Minister of Information and Culture, Lai Mohammed, who disclosed this said that the destruction of public infrastructure by some unpatriotic Nigerians required great concern and immediate action.

Mohammed, who stated these during a town hall meeting on protecting oil and gas infrastructure  said between January 2019 and September 2020, 1,161 pipeline points across the country were vandalized.

He said, “I do not intend to take the wind out of the sail of the experts who will speak on this issue, but with an average of 200,000 barrels per day lost to the wanton damage to pipelines and a huge amount of N60bn yearly to repair and maintain the vandalized points, one can only imagine the impact on the economy.

“According to statistics, between January 2019 and September 2020, 1,161 pipeline points across the country were vandalized.

“Apart from the impact on the nation’s earnings, consider also the environmental problems caused by the incessant vandalism, in terms of freshwater pollution, air pollution, soil pollution, etc., and you will appreciate the enormity of the problem.”

The minister said with oil providing 80 percent of Nigeria’s budgetary revenues and 95 percent of foreign exchange earnings, the impact of the incessant destruction of oil pipelines on the economy was enormous.

The Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari, said from January-May, NNPC pipeline segments had suffered 203 pipeline breaks with System 2B having 80 pipeline breaks and System 2E, a total of 114 pipeline breaks with a total cumulative loss of 39 million litres amounting to N5.97bn.

He said, “An average of $2.16bn of revenue has been deferred annually since 2014 as a result of incessant pipeline vandalism. Pipeline vandals and criminal gangs operating along system 2B axis have stolen about 307.99 million litres of PMS valued at N41.05bn.

“System 2E lost 26 million litres of PMS valued at N3.47bn due to activities of vandals in 2019.

“From January-December 2020, losses along system 2B amounted to 146.81 million litres of PMS valued at N22.49bn.

“Some notable hotspot areas are Abagbo, Ikate, Akaraba, Ilashe, Imoren, Ijegun, Ikotun, Baruwa, Oke Odo, Warewa and Ilara. System 2E lost 0.24 million litres of PMS valued at N36.3m in 2020”, he said.

Kehinde Ogunyale

Freelance Investigative and Data Journalist

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