From Aidoghie Paulinus, Abuja
The Federal Government has lamented the destruction of oil and gas infrastructure in the country.
The Government lamented the development during a town hall meeting organised by the Ministry of Information and Culture on protecting oil and gas infrastructure held in Abuja.
The Minister of Information and Culture, Alhaji Lai Mohammed, speaking during the town hall meeting, said the meeting was very important, considering that the destruction of the infrastructure had socioeconomic and environmental implications.
Mohammed added 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.
‘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 60 billion Naira yearly to repair and maintain the vandalised 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 vandalised. 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,’ Mohammed said.
While reminding Nigerians that public infrastructure was at the very core of the economic growth and national development, Mohammed further said the destruction of public infrastructure by some unpatriotic Nigerians called for great concern and immediate action, hence the Government’s decision to organise the town hall meeting series.
‘It is common knowledge that Nigeria has long suffered massive infrastructure deficit due to decades of neglect, population explosion and the absence of maintenance culture. But since coming into office in 2015, the Muhammadu Buhari Administration has embarked on rapid economic growth with equity, i.e. people-centred economic management as well as prioritising 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.
‘To have such laudable efforts of the government thwarted by some unpatriotic citizens through wanton destruction of critical infrastructure is totally unacceptable. 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.
‘Let me round off by reminding us all of this Administration’s massive investment in infrastructure since coming into office, despite dwindling resources. With far less resources, the administration has recorded more infrastructural development than was achieved in all the 16 years of the previous administration. 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,’ Mohammed also said.
In his remarks, the Minister of State, Petroleum Resources, Timipre Sylva, said since 2014, an average of about 38 million barrels of crude oil were deferred annually due to incessant pipeline vandalism.
Sylva who was represented by the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, also said the increasing impact of piracy has led to loss of human lives and valuable property, infliction of bodily injuries and trauma to crews.
Sylva further said the loss of government revenue and associated funding issues was estimated to cost West African governments and businesses $800 million per annum.
He added that the situation will lead to negative international reputation and impaired investors confidence, including high costs of doing business due to high insurance premiums and security costs estimated at $2 billion per year.
Sylva disclosed that in 2020, about $1.538 billion of revenue comprising of 37 million barrels, was deferred due to 94 incidences.
‘An average of $2.163 billion of revenue has been deferred annually since 2014 as a result of incessant pipeline vandalism,’ Sylva said.
Giving a historical perspective of the downstream infrastructure security, Sylva disclosed that pipeline vandals and criminal gangs operating along system 2B axis have stolen about 307.994 million litres of the Premium Motor Spirit (PMS) valued at N41.049 billion.
‘System 2E lost 26 million litres of PMS valued at N3.468 billion due to activities of vandals in 2019.
‘From January-December 2020, losses along system 2B amounted to 146.809 million litres of PMS valued at N22.487 billion. Some notable hotspot areas are Abagbo, Ikate, Akaraba, llashe, Imoren, ljegun, Ikotun, Baruwa, Oke Odo, Warewa and llara,
‘System 2E lost 0.237 million litres of PMS valued at N36.3 million in 2020,” Sylva further said.
On the downstream infrastructure security in 2021, Sylva disclosed that from January-May, the NNPC pipeline segments have 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 N5.973 billion.
Sylva listed consequences of pipeline vandalism to include environmental damage, huge product losses, high cost for repairs, lost time on operations and human and property damage.
He, however, listed areas of collaborations to curb pipeline vandalism which includes citizens taking the pipelines as critical national assets and report activities of suspected vandals to relevant authorities and community leaders ensuring the pipeline right-of-way was not encroached to avoid unfortunate incidences of fire outbreaks.
On his part, the Minister of Environment, Mohammad Mahmood Abubakar, said pipeline vandalism over the years, was one of the major factors that have contributed significantly to environmental degradation in the Niger Delta region.
Abubakar also said attacks on oil facilities have become the innovation that replaced the agitation in the Niger Delta region against the perceived poor governance and neglect of the area.
In his earlier remarks, the Minister of Niger Delta Affairs, Godswill Akpabio, said using N60 billion for maintenance of pipeline showed that there was a problem in the oil and gas industry.
He said more attention should be placed on not just the militants, but those laying the pipes.
‘So, we must focus on those who lay the pipeline. Those laying the pipes might want to gain from destroying it or blowing it up.
‘We must reduce the profitability of vandalism. People should be punished and tried openly; the Minister of Information should ensure adequate coverage of those caught in the act to serve as a deterrent to others,’ Akpabio said.