The Federal Government spends N60 billion annually in repairs and maintenance of vandalised pipelines, the Minister of Information and Culture, Alhaji Lai Mohammed has said.
This is as the country lost in revenue N4.5 trillion, with an average of 200,000 barrels of crude oil per day due to activities of vandals in the region.
Mohammed revealed this on monday at the Town Hall meeting in Abuja. The town hall meeting focused on Protecting Oil and Gas Infrastructure. The Ministers of Niger Delta Affairs, Godswill Akpabio, Minister of Environment, Mohammed Mahmood Abubakar and the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari were the panelists.
The minister who quoted statistics said between January 2019 and September 2020, 1,161 pipeline points across the country were vandalized.
According to him, “ 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 vandalized 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 vandalized.”
He also added, “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.”
Adding his voice to the economic cost of vandals in the oil sector, NNPC GMD said Pipeline vandals and criminal gangs have stolen crude worth billions of naira.
He however said in the last few years the number of vandalism had reduced drastically from 623 cases to 94.
This he attributed to the current systemic approach in tackling restiveness in the Niger Delta region.
He said, “Pipeline vandals and criminal gangs operating along system 2B axis have stolen about 307.994 Million Litres of PMS valued at N41.049bn
“System 2E lost 26Million Litres of PMS valued at N3.468bn 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 N22.487bn. Some notable hotspot areas are Abagbo, Ikate, Akaraba, Ilashe, Imoren, Ijegun, Ikotun, Baruwa, Oke Odo, Warewa and Ilara.
“System 2E lost 0.237Million Litres of PMS valued at N36.3million in 2020.
“From January-May 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 39million litres amounting to N5.973bn
He listed other loses to include, Environmental Damage, Huge product losses, High cost for repairs, Lost time on operations and Human and Property Damage
He therefore urged that “Citizens should take the Pipelines as critical national assets and report activities of suspected vandals to relevant authorities.
“Community Leaders should ensure the Pipeline right-of-way is not encroached to avoid unfortunate incidences of fire outbreaks.
The Minister of Niger Delta, Godswill Akpabio also added another dimension to the issue, saying focus should be on those granted the contract to lay the pipes.
He said vandals must be punished as a way of reducing the menace.
“N60 billion for pipeline maintenance of pipelines shows that there is a problem in the industry. 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 should ensure adequate coverage of those caught. This will serve as a deterrent to others.
“The problem should be critically analysed because the menace can be combined efforts between the vandals and those who lay the pipe,” he said.
Besides, he said the issue of Corporate Social Responsibility (CSR) has been jettisoned by oil majors, something he said should be revisited.
The Minister also revealed that about 16,000 young people die annually as a direct result of oil pollution.
He therefore said the country should push for zero tolerance for vandalism.
Besides, he said the ministry has planned to commence a reorientation of the people on the need to protect critical infrastructure.
The programme, he said is targeted at primary and secondary students so as to inculcate the idea of safeguarding critical infrastructure in them from tender age.
The Minister of Environment on his part, said Nigeria is the most notorious country of oil theft.
Abubakar lamented the consequences of vandalism, which he said include loss of oil revenue, water and soil degradation.
He also revealed that the Ogoni clean up is going on well and strong.
Besides, he said the ministry had trained women in skill acquisition to improve their livelihood.
