Nigeria’s Old Pipelines: Government Calls For Private Sector Help.

By Dominic Dominic,Outlook Media.

Nigeria’s Federal Government has admitted that the Nigerian National Petroleum Company Limited (NNPC) lacks the funds to replace the country’s old and corroded pipelines. Minister of State for Petroleum Resources, Heineken Lokpobiri, made this revelation at the Energy and Labour Summit 2024 in Abuja.

Pipeline Vandalism and Evacuation Challenges

Mr. Lokpobiri highlighted the challenges posed by old pipelines, built in the 1960s and 1970s, which are now expired and corroded, making them vulnerable to vandalism. He emphasized the need for better technologies and pipelines but noted that these come at a higher cost.

Public-Private Partnerships Sought

The minister called for public-private partnerships (PPPs) to fix the old pipelines, stressing the need for private sector investment to address the issue. He acknowledged that the NNPC, as the joint venture partner, does not have the necessary funds for pipeline replacement.

Fuel Smuggling and Energy Security

Minister Lokpobiri attributed fuel smuggling from Nigeria to neighbouring countries to the NNPC’s practice of importing and selling fuel below the landing cost. He emphasized Nigeria’s critical role in Africa’s energy security and the need for strategic action to address smuggling.

Crude Supply to Local Refineries

The minister expressed concerns about the supply of crude to local refineries, including Dangote, due to production challenges. He stressed the need to ramp up production to meet domestic obligations and export commitments.

Commitment to Supporting Local Refineries

The reaffirmed the government’s commitment to supporting local refineries with feedstock, ensuring healthy competition among small and big refiners. He emphasized the importance of fair treatment for all refiners to achieve the country’s energy goals.