Nigeria’s Minister of State for Petroleum Resources, Heineken Lokpobiri, has provided insights into the ongoing issues of fuel smuggling and oil theft, attributing them to fuel subsidies and outdated infrastructure.
At the recent Energy and Labour Summit 2024 in Abuja, hosted by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Lokpobiri discussed how fuel smuggling persists due to the Nigerian Petroleum Company Limited (NNPC) selling fuel below its actual landing cost.
“Nigeria’s role in Africa’s energy security is significant. This is why petrol smuggled from Nigeria ends up across West Africa. Smuggling is inevitable if NNPC sells petrol at rates like N600 or below,” Lokpobiri said.
Regarding pipeline vandalism and oil theft, Lokpobiri noted that Nigeria’s pipelines are largely outdated and vulnerable. “The pipelines are old and corroded, making them easy targets for vandals. More advanced, costly technologies used elsewhere are necessary,” he added.
To tackle these issues, Lokpobiri stressed the need for public-private partnerships (PPP) to modernize the country’s aging pipeline infrastructure. “We must adopt a global model through PPPs to involve the private sector in these improvements,” he concluded.
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