The constant attacks on critical national assets, especially petroleum product pipelines appears to have defied all solutions, posing a national security threat capable of bringing the nation’s economy to its knees with over $41.94 billion loss in 10 years.
According to the Nigerian Extractive Industry Transparency Initiative (NEITI), the $41.94 billion loss in 10 years translated to $11.47 million a day, $349 million a month and $4.19 billion a year.
The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, said the Corporation had recorded 45,347 pipeline breaks on its downstream pipeline network across the country between 2001 and January to June of 2019, to underscore the gravity of activities of oil thieves and pipeline vandals in Nigeria.
Similarly, the NNPC had, in its July 2019 Monthly Financial and Operations Report (MFOR), raised the alarm that pipeline vandalisation reached an all-time high, rising by 115 per cent. The corporation explained that a record number of 228 points were broken on the country’s pipelines in the month under review, adding that the breached lines represented an awful increase from 106 vandalised points recorded in June 2019. According to NNPC, out of the damaged points, 15 failed to be welded, while five points were ruptured. The report also stated that the Aba to Enugu axis accounted for 35 per cent of the breaks, while Port Harcourt to Aba pipeline route recorded 22 per cent, with Ibadan to Ilorin recording 16 per cent of the breakages. Similarly, it said the Lagos Atlas Cove to Mosimi Zone logged 12 per cent with other locations recording the remaining 15 per cent of the breaks. The above paints a gory picture and the sordid state of the downstream petroleum sector as activities of vandals is almost bringing the industry and economy to a standstill.
On Sunday January 19, 2020, dare-devil vandals struck again in the Oke-Odo area of Abule-Egba, Agbado Oke-Odo Local Council Development Area (LCDA) in Lagos, leaving five people dead, 11 houses burnt, goods and 36 vehicles including 33 trucks worth several millions of Naira destroyed in a night inferno that engulfed the community after siphoning premium motor spirit, popularly called petrol.
Also, On December 5, 2019, part of the System 2B pipeline was vandalized by oil thieves at Baruwa village in Egbe-Idimu Local Council Development Area of Lagos State. In the process of stealing petrol, the pipeline caught fire and caused loss of several lives, revenue and environment pollution. The incident was the second in the year in the same area as similar attack occurred in November.
On December 26, 2006 and December 19, 2018, scores of lives were lost and properties worth millions of Naira destroyed in the Abule Egba area of Lagos as a result of pipeline vandalism.
Similarly, on July 4, 2019 at Ijegun area in Lagos, pipeline explosion caused by vandals, led to several deaths and loss of properties. The menace is not only restricted to Lagos alone but traverses every part of the country where there is crude, products and gas pipelines. This has led to loss of over 3000 lives and trillions of Naira in revenues.
For instance, In July 2000 in Jesse, Delta State, over 250 persons were killed in pipeline explosion. Also, on October 12, 2018, in Umuimo and Umuaduru village, close to Arongwa in Osisioma Local Government Area of Abia State, about 200 people died of pipeline explosion while many houses were burnt and properties worth billions of Naira destroyed. The victims often were people scooping refined petroleum products from vandalized pipeline.
The list is long and has been happening over the past few decades in different states including Rivers, Bayelsa, Imo and Enugu, among other states where there is petroleum pipeline. According to data obtained from the Nigeria Extractive Industries Transparency Initiative (NEITI), $41.94 billion was lost to crude and refined product theft in 10 years, 2009-2018.
A breakdown of the losses revealed $1.56 billion worth of crude loss was incurred by the Nigerian National Petroleum Corporation (NNPC), $1.84 billion worth of refined products loss and $38.54 billion worth of crude losses by oil companies. Further breakdown showed volume of crude losses in the 10 years. In 2009, 69.9 million barrels of crude oil was lost; in 2010, 28.3 million barrels; in 2011, 38.61 million barrels; in 2012, 51.58 million barrels; in 2013, 78.3 million barrels; in 2014, 40.17 million barrels; in 2015, 27.12 million barrels; 2016, 101.05 million barrels; in 2017, 36.46 million barrels; and 2018, 17.46 million barrels. On losses incurred through pipeline vandalism and the monetary value between 2009 and 2015, NEITI said in 2009, about 1.77 million barrels estimated at $88.28 million was lost; in 2010 , about 2.33 million barrels worth $166.77 million; in 2011, about 6.39 million barrels worth $639.13 million; in 2012, about 3.05 million barrels worth $304.56 million; in 2013, about 2.40 million barrels worth $240.12 million; in 2014, about one million barrels worth $100.01 million; and in 2015 , about 0.51 million barrels worth $25.93 million. On losses incurred through refined petroleum products between 2009 and 2017, NEITI said in 2009, $78.48 million was lost; in 2010, $72.10 million; in 2011, $98.68 million; in 2012, $201.71 million; in 2013, $284.01 million; in 2014, $273.55 million; in 2015, $287.56 million; in 2016, $37.49 million; and in 2017, $514.23 million. Meanwhile, in the first half of 2019 (January-June) between 150,000 barrels per day (bpd) and 400,000 bpd of crude oil was lost.
The figures are between 7.5 per cent and 20 per cent of total production of Nigeria’s daily production two million barrels, NEITI said. According to the Agency, 22 million barrels were lost in first half of 2019, which is valued at $1.35 billion, about five per cent of 2019 budget and higher than combined 2019 budgetary capital allocations for health, education, defence and agriculture.
Beyond the economic loss to Government, Small Medium Enterprises (SMEs) are also counting their losses in the Abule Egba pipeline inferno and in other areas that experienced similar incidents.
Source: The Sun
