*As FG Spends N60bn Annually on Repairs
By Teddy Nwanunobi & Aisha Salah
Nigeria lost the sum of N4.75 trillion to oil and gas pipeline vandalism in three years, the Federal Government has revealed.
This was even as the Federal Government spends the sum of N60 billion annually to repair oil and gas pipelines that are vandalised.
Speaking at the ‘Town Hall Meeting on Protecting Oil and Gas Infrastructure’ on Monday, the Minister of Environment, Dr. Mohammad Mahmood Abubakar, also revealed that Nigeria recorded a total of 235,260 spillages, from 2015 to March 2021.
“Oil pipeline vandalism, over the years, is one of the major factors that contributed significantly to the environmental degradation. The impact of oil vandalism does not only cost the nation losses of revenue, but money that could have been used on other channels, such as education, health, housing, roads, etc.
“Incidents on our reports on vandalism on our data, according to the National Oil Spill Detection and Response Agency (NOSDRA), from 2015 to March 2021, the total number of oil spillage is 4919, oil spill caused by corrosion is 308, equipment failure is 484, operational maintenance failure is 106, sabotage is 3628, and yet-to-determine 70, bringing a total number of oil spill on the environment to 235,306 vandals on oil,” Abubakar said.
Abubakar further disclosed that Nigeria lost 43 per cent of its revenue to oil and gas pipeline vandalism, from 2015 to 2018.
“Nigeria has lost, approximately, N4.75 trillion on oil theft, from 2015 to 2018, according to an estimate by the Nigeria Natural Resources Charter (NNRC). This loss to the government is 43 per cent of its revenue on oil theft,” he said.
He stated that Nigeria was being recognised as the most notorious country in the world for oil theft.
“We lost, roughly, 400,000 barrels of oil per day. Second recognised is Mexico, with 5,000 to 10,000 barrels of oil per day,” he added.
Earlier, the Minister of Information, Alhaji Lai Mohammed, said that the Federal Government was spending N60 billion annually to repair vandalised pipelines.
According to Mohammed, with oil and gas providing 80 per cent of Nigeria’s budgetary revenues and 95 per cent of foreign exchange earnings, the impact of pipeline vandalism on the economy could only be imagined.
“Today’s town hall meeting on protecting oil and gas infrastructure is very important, considering that the destruction of this infrastructure has socioeconomic and environmental implications. 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 N60 billion yearly to repair and maintain the vandalised points, one can only imagine the impact on the economy,” he stated.
Mohammed said between January 2019 and September 2020, a total of 1161 pipeline points across the country were attacked by vandals.
“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. 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,” he added.
Valuechain reports that the current administration is not leaving any stone unturned in its fight against oil and gas pipeline vandalism.
