How repair, maintenance of vandalized pipeline cost FG N60 billion yearly

By Mashe Umaru Gwamna

In Nigeria, oil pipeline vandalism has been perpetrated principally by criminal syndicates who are motivated by the desire to loot oil products for material gains.

Research has revealed that constant oil spills from these pipelines constituted health hazards for both the people and the  environment.

The federal government has been striving to safeguard and stop the destruction of oil and gas infrastructures.

Meanwhile, laudable efforts of the government has been thwarted by some unpatriotic citizens through the wanton destruction of critical infrastructure.

Minister of Information and Culture, Lai Muhammed said the federal government spends 60 billion Naira yearly to repair and maintain vandalized pipelines.

He said this dastardly act, has made the government to lose an average of 200,000 barrels per day to the wanton damage to pipelines.

Moved by  great concerns to address the challenges, Lai, again organised  a Town Hall meeting on protecting Oil and Gas infrastructure  on July 5 , 2021 in Abuja, to rub minds with major stakeholders  on the menace of oil and gas  vandalisation across  the  country and how they can proffer solutions to the lingering problems.

Lai said Nigeria has long suffered a massive infrastructure deficit due to decades of neglect, population explosion and the absence of maintenance culture.

Speaking at the 20th edition, the Minister revealed that the idea behind the gathering was to create in the public mind that government property are indeed citizens’ property and so must be protected for the benefit of all.

He further explained that protection of oil and gas infrastructure is very important to the country, considering that, the destruction of this infrastructure has socioeconomic and environmental implications on the nation .

He said “To have railway tracks subjected to wanton destruction, bridge railings removed, manhole covers pilfered, street lights and other power infrastructure, oil pipelines, telecoms facilities and critical aviation infrastructure damaged or stolen do not augur well for our growth and development.

“Apart from endangering the lives of fellow innocent citizens, such unpatriotic acts take a toll on the government’s limited revenue, as it seeks to replace, rehabilitate or totally reconstruct such destroyed infrastructure,” he said.

The  Minister stated that 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,the environmental problems caused by the incessant vandalism, in terms of freshwater pollution, air pollution, soil pollution among others and you will appreciate the enormity of the problem”.

He explained that, with oil providing 80 per cent of Nigeria’s budgetary revenues and 95 per cent of foreign exchange earnings, one can only imagine the impact of the incessant destruction of oil pipelines on the economy.

He, however, said that since coming into office in 2015, the Muhammadu Buhari Administration has embarked on rapid economic growth with equity, that is people-centred economic management as well as prioritizing human capital development through enhanced social services and infrastructure development.

“Despite a drastic drop in revenues and competing priorities, especially that of tackling insecurity, the Administration has invested heavily in providing new infrastructure, in addition to reconstructing and rehabilitating existing ones.”

Lai emphasized that, with far less resources, the administration has recorded more infrastructural development than was achieved in all the 16 years of the previous Administration.

He stressed that, as this government strives to bridge our nation’s infrastructural deficit, we must do everything in our power to stop the wanton destruction of public infrastructure assets.

Also speaking, the Minister of state for Petroleum Resources  ,Timipriye Sylva said  pipeline vandalism has caused the nation a lot in terms of economic saying  that since 2014 an average of  39 million barrels crude oil is deferred annually due to incessant pipelines vandalism.

Sylva  reiterated that“in 2020 about $1.535billion of revenue was deferred 37million barrels due to 94 incidences.

“An average of $2.163billion of revenue has been deferred annually since 2014 as result of Incessant pipeline vandalism”.

He pointed out that ,the effect of pipeline vandalism has increased impact on piracy, loss of government revenue ,human and property damage among many others.

He said“ the rural communities in the Niger Delta area of Nigeria are having environmental problems due to the operations of pipeline vandals and the activities of the  NNPC.

“When you go round the Niger delta states, and when you look at the conditions of the people in the Niger Delta especially in the rural communities, in many areas where we conduct direct operations, you will know for sure that some communities are in the perpetual day  and night  because the flare sites some kilometres away from these communities have fire burning all through the day all through the year. You cannot distinguish between daytime and night,” .

Sylva represented by the Group Managing Director of Nigeria National Petroleum Corporation, NNPC, Melle Kyari,  said a special fund was created for the host communities to cushion the effect of oil pollution and degradation on the environment.

He also raised concerns about the oil derivation formula as proposed in the Petroleum Industry Bill recently passed by the national assembly for the host communities adding that stakeholders should be cautious on the figure in order not to drive the international oil companies away from Nigeria.

“Oil companies are leaving our country, and why are they leaving our country, it’s not just about security, it’s about the physical environment for the businesses we are operating in this country. Every cost is an additional load on the business and it will affect the margin of the company that’s why they are likely leaving apart from the environment we talked about,” he said.

Similarly, The Minister of Niger Delta Affairs, Godswill Akpabio said that,youths of host communities should be gainfully engaged to reduce the issue of pipeline vandalism .

Akpabio maintained that, the amnesty program by the federal government has worked to ensure relative peace in the oil-producing areas of the Niger delta.

He however appealed to the international Oil Companies to remit the agreed percentage so that the Niger Delta Development Commission NDDC will function optimally.

He revealed that “the International Oil Companies IOCs are collectively owing the NDDC 4.2billion Dollars. That’s what they do and it’s not only the IOCs alone but other joint venture companies,”.

The minister stated” the NDDC has also taken it sensitization programme to pupils in primary schools educated the young generation on the effect of oil and pipelines vandalisation.

On his part, the Minister of Environment, Dr Muhammed Mahmoud  said Nigeria  has loss 4.75 trillion Naira to oil theft in four years between 2015 and 2018 which results in oil spillage in the Niger Delta region.

Mahmoud said the impact of pipeline vandalism on Oil facilities has not only caused the country to lose revenue but monies that could have been used to develop other sectors, like education, health, road and among others.

“There should be increase community development sustainable project for all host communities, skill acquisition provision of infrastructure and basic amenities by oil companies and relevant tiers of government.

“Creating ownership status to host communities and increasing their involvement in monitoring and surveillance of oil facilities,”he emphasized.