By Prince Okafor

THE cost of pipeline repairs and management dropped to N29.23 billion in October 2021, from N49.68 billion recorded in the corresponding period in 2020, indicating a decrease of 41 percent, according to reports of the Nigerian National Petroleum Corporation, NNPC. 

A breakdown of the development showed that the corporation recorded the highest spending in October, as a total of N6.5 billion was utilised for the repair of pipelines and other facilities, while N143 million was recorded as strategic holding cost.

READ ALSO:Police arrest 2 suspected kidnappers in Ogun

Similarly, in April, the corporation recorded the least spending. While N1 billion was recorded as security and maintenance cost, N0.74 billion was utilized as strategic holding cost. 

A further breakdown of the development showed that N12.91 billion was spent within the period under review as security and maintenance cost, N9.83 billion was utilised for pipeline repair, while N6.66 billion was recorded as strategic holding cost. The corporation did not record any expense on marine distribution and pipeline management costs.

Experts react

Meanwhile the Independent Petroleum Marketers Association of Nigeria, IPMAN, faulted the Federal Government over its inability to tackle pipeline vandalism in the country. Senior Special Assistant on Special Duties to the Chairman, National Task Force on Anti-Pipeline Vandalisation, Petroleum Product Adulteration and Monitoring, Nwozuzu Chigozie, said that illegal refineries should be legalised rather than destroyed.

He said: The Federal Government should also probe the direct sale and direct purchase, DSDP, of crude oil schemes spearheaded by NNPC. The Federal Government has lost the capacity to stop vandalism and illegal refinery. They have failed in their capacity to provide to Nigerians functional refineries. It is ridiculous that in this modern era, Nigeria is still importing refined products. How can Nigeria be taking crude abroad for refining?”

95% FOREX earnings dwindle over vandals’ activities – FG

This came as the Federal Government has kicked against activities of vandals across the country, stressing that their impact on the nation’s economy was pushing the country’s economic prosperity backwards.

Speaking during a town hall meeting in Abuja, the Minister of Information and Culture, Alhaji Lai Mohammed said: “With oil providing 80 per cent of Nigeria’s budgetary revenues and 95 per cent of foreign exchange earnings, one can only imagine the impact of the incessant destruction of oil pipelines on the economy. Between January 2019 and September 2020, 1,161 pipeline points across the country were vandalised. Apart from the impact on the nation’s earnings, consider also the environmental problems caused by the incessant vandalism, in terms of freshwater pollution, air pollution, soil pollution, etc., and you will appreciate the enormity of the problem.

“This administration has embarked on massive investment in infrastructure since coming into office, despite dwindling resources. With far fewer resources, the administration has recorded more infrastructural development than was achieved in all the 16 years of the previous administrations. As this government strives to bridge our nation’s infrastructural deficit, we must do everything in our power to stop the wanton destruction of public infrastructure. Please remember that public infrastructure is at the very core of economic growth and national development. 

Therefore, the destruction of public infrastructure by some unpatriotic Nigerians calls for great concern and immediate action, hence our decision to organise this town hall meeting series.”

NNS arrest 16 pipeline vandals.

 However, the Nigerian Navy Ship, NNS Beecroft, Apapa, Lagos, arrested no fewer than 16 suspected pipeline vandals at Abagbo segment of the NNPC pipelines. According to the Commander, NNS Beecroft, Commodore Bashir Mohammed, the arrest was made by the ship’s Task Force at Atlas Cove after a credible intelligence report. He said the suspects were arrested with 73 kegs of 50 litres and 18 kegs of 25 litres, each filled with products suspected to be Premium Motor Spirit, PMS, and two fibre boats with 175 HP each. Some were also arrested during a routine harbour patrol at the creek around the snake Island. 

The arrest will send a message to the criminals of the Nigerian Navy’s resolve of zero-tolerance to pipeline vandalism and illegal bunkering. NNS Beecroft will not relent in executing the mandate of the Chief of Naval Staff, CNS, Vice Admiral Awwal Gambo, which is geared toward eliminating economic sabotage thereby boosting national prosperity.”