Pipeline vandalism and its far-reaching effects on Nigeria
Last week, industry stakeholders and security experts converged on Lagos to confer on the theme ‘Pipeline Vandalism and its Socio-Economic Effects on the Nation’. At the annual conference of the National Association of Energy Correspondents’ (NAEC), solutions were proffered to stem the menace.
Yunus Yusuf, chairman NAEC, said the theme was apt considering the huge consequences of pipeline vandalism often caused by oil thieves. “Oil production has dropped as a result of shut-ins by oil companies, most of the gas-powered stations are generating electricity at very sub-optimal levels while some are not producing due to lack of gas supply,” he noted.
The effects of these challenges are substantial decline in revenue to the nation, high cost of production of goods and services due to high cost of energy, and explosions which have resulted in loss of lives, Yunus said.
It is estimated that a total of 16,083 pipeline breaks were recorded within the last 10 years and according to the Nigerian Extractive Industry Transparency Initiative (NEITI), Nigeria lost a total of $10.9 billion to oil theft between 2009 and 2011 and 10 million barrels of crude oil valued at $894 million were lost to pipeline vandalism in that period.
Pipeline vandalism has been a major threat to the nation’s growth prospects as its implication ranges from economic to social and political. Not a few of the nation’s strategic depots have been left idle and moribund for years as pipelines supplying products through them have been constantly under incessant attack by vandals.
The operation of the Port Harcourt Refining Company Limited (PHRC), which is made up of two of the nation’s refineries, was restricted to about three months last year as a result of pipeline vandalism, according to the Pipelines and Product Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).
According to Haruna Momoh, managing director, PPMC, the Escravos-Warri Refining Petrochemical Company (WRPC) and Bonny-PHRC pipelines are out due to disruption of crude oil supply to the refineries.
He noted that the lingering disruption of pipelines in the country has resulted in the use of marine vessels for crude oil deliveries to the refineries. The option of transporting by marine vessels has increased the operational cost of refining in the country.
The Federal Government needs to develop a national plan for critical infrastructure and key resources protection similar to the United States’ National Infrastructure Protection Plan (NIPP), said Momoh.
Pipeline breaks and ruptures from 2011 to 2013 were 4,468, 3708 and 3,571, respectively, according to data from PPMC.
There need to harmonise the Oil Pipelines Act, Cap 338 of 1990, the Oil Pipelines Regulations which are made pursuant to the Act and the Miscellaneous Offences Act (1984).
Emmanuel Atuwe, a major general and commander, Joint Task Force (JTF), Operation Pulo Shield, said that the issue of vandalism should be tackled culturally, psychologically and economically.
“In fact, pipeline vandalism has become a cankerworm to the socio-economy growth of the nation, which is affecting investment in Nigeria, therefore, it requires the collaboration of all stakeholders and indeed Nigerians to tackle this menace head-on,” said Yunus.
FEMI ASU