Nigeria's Oil and Gas Pipelines to Reach 100% Capacity Utilisation

The Nigerian National Petroleum Company Limited (NNPCL) has announced that the country's oil and gas pipelines are nearing 100% capacity utilisation, following a significant reduction in pipeline theft due to coordinated efforts between the country's defence and intelligence agencies. This achievement is a stark contrast to three years ago, when as little as 30% of oil sent through some pipelines made it to Nigeria's export terminals, resulting in billions of dollars in lost revenue and delayed investment.

Key Takeaways:

  • The group chief executive officer of NNPCL, Bayo Ojulari, reported that pipeline and terminal receipts are attaining close to 100% capacity utilisation.
  • The turnaround was achieved through a partnership between the oil and gas industry and Nigeria's defence and security institutions, which has resulted in the reduction of pipeline vandalism, crude theft, and sabotage.
  • The national oil company has witnessed the impact of military operations, intelligence-driven interventions, and joint patrols in securing critical energy infrastructure.
  • Oil theft involves sophisticated international syndicates that exploit gaps in the national, regional, and continental security architecture.
  • Energy security must be treated as a shared strategic priority, and regional and continental cooperation is necessary to safeguard Africa's resources and reinforce peace.

Statistics:

  • As of three years ago, oil sent through some pipelines made it to Nigeria's export terminals at a rate of as little as 30%.
  • Nigeria's oil production was last close to 2.5 million barrels per day in 2005, before militancy in the Niger Delta reduced output to 1 million bpd by 2016.
  • In 2021, Nigeria began hiring private security firms to complement the national security organisations in managing pipeline security.
  • Nigeria's oil regulator projected that the country's output could surpass 2.5 million barrels per day next year.

Sources:

  • Leadership (2023) - not explicitly mentioned, rest of the information provided in the text.
  • AllAfrica Global Media (no date) - Copyright 2025 Leadership. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com).