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OIL & GAS PIPELINES:Reps Set Up Panel To Examine Impacts of Frequent Vandalism

Nigeria ‘s Lower Chamber, the House of Representatives has set up an ad-hoc committee to investigate the current state of oil and gas pipelines across Nigeria.

 

The lawmakers also plan to probe the causes and impacts of frequent pipeline vandalism, which has cost the country billions in lost revenue.

 

This decision followed the adoption of a motion of public importance moved by Muhammad Shehu from Kano State and Fifteen other lawmakers.

 

Titled “Urgent Need to Rehabilitate the Oil and Gas Pipeline Networks to Avert Economic Loss for Nigeria,” the lawmaker highlighted the urgent need to protect critical infrastructure.

 

Shehu noted that Nigeria’s oil and gas sector, which contributes about 9% to the Gross Domestic Product (GDP) and over 90% of export revenues, has been severely impacted by pipeline vandalism.

 

“Between 2018 and 2023, Nigeria recorded over 7,000 incidents of pipeline vandalism, resulting in the loss of $12.74 million worth of crude oil,” he stated.

 

He further cited recent cases, including: October 2024: Crude oil supply to Shell’s Forcados Terminal was reduced by 50% due to sabotage, causing loading delays and potential force majeure declarations.

January 2025: A major pipeline spill from Shell’s Nigerian subsidiary devastated the Niger Delta environment, worsening pollution and economic hardship for host communities.

February 2025: Shell reported another oil spill near Port Harcourt caused by an overflow during pipeline flushing operations.

 

Shehu expressed concern that these recurring breaches have led to extensive environmental degradation, loss of livelihoods, and substantial revenue losses, further straining Nigeria’s economic and security landscape.

 

Commending the Nigerian National Petroleum Company Limited (NNPCL) for intensifying efforts against crude oil theft, including uncovering 19 illegal pipeline connections and 58 illegal refineries in a single week in January 2025, Shehu stressed that pipeline deterioration threatens Nigeria’s energy security and economic sustainability.

 

The panel would be expected to engage key stakeholders, including the NNPCL, Nigeria Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, security agencies, oil companies, host communities, and civil society organizations, to recommend sustainable solutions.

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