The Federal Government has disclosed that the Nigerian National Petroleum Company Limited (NNPC) lacks the funds to repair and replace the country’s aging pipelines.
Minister of State for Petroleum Resources, Heineken Lokpobiri, made this revelation at the Energy and Labour Summit 2024 in Abuja.
Lokpobiri emphasized the need to address pipeline vandalism and evacuation issues, stating that the pipelines, built in the 1960s and 1970s, have expired and are easily susceptible to damage. He noted that even if production increases, evacuation remains a significant problem.
The minister advocated for public-private partnerships to fix the pipelines, citing the need for private sector investment. He emphasized that foreign investors must have confidence in the country, which has been lacking in the past 12 years.
Lokpobiri attributed fuel smuggling to the NNPC’s practice of importing and selling fuel below the landing cost. He stressed Nigeria’s critical role in Africa’s energy security and the need to address smuggling and pipeline vandalism.
The minister expressed concerns about meeting the demand for crude supply to local refineries, including Dangote, due to production challenges. He emphasized the importance of ramping up production to support local refining and ensure energy security.
Lokpobiri assured that the Federal Government is committed to supporting local refineries with feedstock, ensuring healthy competition among small and big refiners. He emphasized the need to explore investors to meet domestic obligations and export crude to raise revenue.
