The Federal Government has announced that the Nigerian National Petroleum Company Limited (NNPC) lacks the funds to replace the country’s old pipelines, which have been in use since the 1960s and 1970s.
Minister of State for Petroleum Resources, Heineken Lokpobiri, said this at the Energy and Labour Summit 2024 in Abuja, highlighting the need for urgent attention to the nation’s pipeline infrastructure.
Lokpobiri emphasized that the pipelines’ corroded state makes vandalism easy and hinders the evacuation of crude oil, ultimately affecting the country’s oil production and revenue.
He stressed that the NNPC cannot afford to replace the pipelines alone and is seeking public-private partnerships to address this critical issue.
The minister also discussed the smuggling of fuel from Nigeria to neighboring countries, attributing it to the NNPC’s practice of selling fuel below the landing cost. He noted that this practice encourages smuggling, as fuel can be sold at a higher price in other countries.
Furthermore, Lokpobiri expressed concerns about the supply of crude to local refineries, including Dangote, and emphasized the need to ramp up production to meet domestic and export obligations. He highlighted the government’s commitment to supporting local refineries with feedstock, ensuring healthy competition among small and large refiners.
The minister’s declarations underscore the urgent need for investment in Nigeria’s oil and gas infrastructure, particularly in pipeline replacement and refinery capacity expansion. By seeking private sector partnerships, the government aims to address these challenges and ensure energy security for the nation.
