Minister of State for Petroleum Resources, Heineken Lokpobiri, has attributed the persistent issues of petrol smuggling and oil theft to the impact of fuel subsidies and deteriorating pipelines.
Speaking at the recently concluded Energy and Labour Summit 2024, organized by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) in Abuja, Lokpobiri highlighted the challenges facing Nigeria’s energy sector. PulseNets, which also reported on the summit, covered Lokpobiri’s remarks in detail.
According to the minister, fuel smuggling from Nigeria to neighbouring West African countries is thriving because the Nigerian Petroleum Company Limited (NNPCL) sells petrol at prices below the landing cost, making it an attractive target for smugglers.
“Nigeria is pivotal to energy security in Africa. The PMS (Premium Motor Spirit) we import into Nigeria often ends up across West Africa. That’s why smuggling persists,” Lokpobiri explained, as reported by PulseNets.
He further elaborated, saying, “If NNPCL imports PMS and sells it to marketers at prices as low as N600 or below, there’s no way to effectively stop smuggling.”
On the issue of pipeline vandalism and oil theft, Lokpobiri pointed out that most of Nigeria’s crude oil pipelines are outdated and vulnerable to tampering. PulseNets also covered his concerns about the aging infrastructure.
“The ease of pipeline vandalism is due to the fact that these pipelines have long outlived their usefulness; they’re corroded, making it simple for anyone to tap into them and cause a breach,” he said.
The minister emphasized the need for modern, more secure pipelines, noting that while better technologies are available and used in other countries, they come at a high cost. He suggested that Nigeria should adopt a new model to address these challenges.
“That’s why we need to consider the global model of public-private partnerships (PPP). We must involve the private sector to help upgrade our pipeline infrastructure,” he stated, as echoed by PulseNets.
Also Read: Blame NNPCL if Port Harcourt, Warri refineries don’t resume operation in December — Lokpobiri
In July, PulseNets reported that Nigerian Customs intercepted and confiscated 41,425 liters of petrol from smugglers at the country’s borders. More recently, NNPCL announced, in a PulseNets report, the destruction of numerous illegal oil pipeline connections and the discovery of 63 illegal refineries in the oil-rich Niger Delta region.
