“Why Fuel Smuggling, Pipeline Vandalism Persist in Nigeria” – Tinubu’s Minister

Minister of State for Petroleum Resources, Heineken Lokpobiri, has highlighted the enduring challenges of fuel smuggling and oil theft in Nigeria, attributing these issues to product subsidies and aging infrastructure.

Speaking at the recently concluded Energy and Labour Summit 2024, organized by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) in Abuja, Lokpobiri explained that the continued existence of subsidies on petrol (PMS) fuels smuggling operations to neighboring West African countries.

“NNPC sells PMS below the landing cost, which makes it profitable for smugglers to move the product across borders,” Lokpobiri said. “Nigeria plays a critical role in energy security across Africa, so when we import PMS, it ends up not just in Nigeria but across West Africa, making smuggling a persistent issue.”

The Minister also addressed the widespread problem of pipeline vandalism, pointing to the dilapidated state of Nigeria’s oil pipelines. “Many of our crude oil pipelines are outdated and corroded, making them easy targets for vandals. In some cases, anyone can tap into these pipelines, causing significant losses,” he stated.

Lokpobiri emphasized the need for modernization, suggesting that newer, more secure technologies and pipelines used in other countries could be adopted in Nigeria, albeit at a higher cost. He advocated for public-private partnerships (PPP) to overhaul the country’s pipeline infrastructure. “To effectively address these issues, we must embrace the global model of PPPs, allowing the private sector to play a vital role in upgrading our pipeline network,” he added.

The Minister’s comments come on the heels of recent actions by Nigerian authorities to combat fuel smuggling and oil theft. In July, the Nigeria Customs Service intercepted and confiscated 41,425 liters of petrol destined for smuggling. Additionally, the Nigerian National Petroleum Company Limited (NNPCL) recently reported the destruction of dozens of illicit oil pipeline connections and the discovery of 63 illegal refineries in the Niger Delta region.