Afrigather Heineken Lokpobiri, the Minister of State for Petroleum Assets says The Nigerian Nationwide Petroleum Firm Restricted (NNPC) doesn’t manage to pay for to repair its previous oil pipelines, He shared this data on the Power and Labour Summit 2024 in Abuja, organised by the Petroleum and Pure Fuel Senior Employees Affiliation of Nigeria.
Minister Lokpobiri identified that Nigeria’s oil pipelines are very previous, constructed again within the Nineteen Sixties and Seventies, they usually want pressing repairs. These previous pipes make it tough to maneuver oil effectively and are straightforward targets for vandalism as a result of they’re so worn out and rusty.
“These pipelines are so previous and rusted that anybody can simply break them open,” stated Lokpobiri. He talked about that newer, higher expertise may assist however it’s costly and NNPC doesn’t have the cash proper now.
On the lookout for Non-public Assist
The Minister urged that partnering with non-public firms might be a method to get the required funds to replace the pipelines. He pressured the significance of creating overseas traders belief Nigeria’s oil trade once more, which has been missing for the previous 12 years. “Since this authorities got here in, we’ve been working to construct again that belief, and now traders are beginning to come again,” he added.
Lokpobiri additionally talked about different massive issues within the oil sector, just like the smuggling of gasoline. This occurs as a result of the NNPC sells gasoline cheaper than it prices them to carry it into the nation, making it tempting for smugglers to promote it illegally in neighbouring international locations.
He admitted that regardless of efforts, smuggling continues due to corruption amongst safety and customs officers on the borders.
Help for Native Oil Refineries
The minister expressed worries about supplying sufficient crude oil to native refineries like Dangote, that are key to Nigeria’s plan to be extra self-sufficient in vitality.
He stated, “We need to improve our oil manufacturing so we are able to help each our native wants and have sufficient to export.” Lokpobiri assured that the federal government is dedicated to treating all refineries pretty and ensuring they get the crude oil they want.
