The Nigerian National Petroleum Corporation (NNPC) Ltd. has faced a staggering 9,000 infractions on its pipelines within a single year, highlighting a rampant issue of oil theft that threatens the nation’s primary source of revenue. This revelation was made by Mr. Mele Kyari, the Group Managing Director of NNPC Ltd., during a session with the House of Representatives Special Committee on Oil Theft in Abuja.
Kyari disclosed the alarming figures as part of NNPC’s ongoing battle against illegal refineries and unauthorized pipeline connections. From 2022 to the present, NNPC has dismantled 6,465 illegal refineries and disconnected 4,876 illicit pipeline connections from a total of 5,570 identified. Despite these efforts, approximately a thousand illegal connections are believed to remain active.
“The scale of the infractions we encounter is unprecedented, and our efforts to curb them often feel like a drop in the ocean,” Kyari expressed. The persistence of these crimes, with new illegal connections frequently replacing those removed, underscores the complexity of the challenge faced by NNPC and the nation at large.
Oil theft in Nigeria is not confined to remote areas but occurs in close proximity to populated settlements and even local government headquarters. This proximity facilitates the unchecked continuation of these criminal activities, severely impacting the country’s oil production capacity.
“In some cases, these illicit activities are happening less than a hundred meters from communities,” Kyari said, pointing out the difficulty in ensuring production security under such conditions. To combat the menace of pipeline vandalism, NNPC has rallied all security agencies, including private security firms, into a unified platform dedicated to protecting these vital assets. Kyari emphasized the importance of state oversight in safeguarding the pipelines, which are crucial for the country’s economic health.
Despite the challenges, Kyari remains optimistic about Nigeria’s production capabilities, stating, “With all the integrity issues with our pipeline and facilities aside, we have the capacity to produce beyond 2 million barrels per day.” However, the specter of crude oil theft has left the country struggling to meet its budget estimate of 1.6 million barrels per day, with figures sometimes plummeting below 1 million barrels.
The Special Committee, chaired by Rep. Alhassan Ado-Doguwa, echoed Kyari’s concerns, noting the frequency of infractions and the broader issue of regulatory opacity and potential official complicity in the crude oil theft saga. The committee aims to shed light on these practices and address the substantial losses resulting from these criminal activities, predominantly concentrated in the Niger Delta region.
