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    Home > Blog > Nigeria Seeks Investors to Revamp 5,200 km of Obsolete Oil Pipelines—Lokpobiri

    Nigeria Seeks Investors to Revamp 5,200 km of Obsolete Oil Pipelines—Lokpobiri

    Goli InnocentBy Goli InnocentOctober 15, 2024 Downstream Sector No Comments4 Mins Read
    Minister-of-State-for-Petroleum-Resources-Oil-Heineken-Lokpobiri (Petroleumprice.ng)
    FG Bans Pipe Imports to Boost Local Production(petroleumprice.ng)

    Nigeria’s oil pipelines have become obsolete, prompting the federal government to seek investors to rehabilitate the 5,200 kilometres of infrastructure across the country, according to Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri. Speaking during a meeting in Abuja with Corps Marshal of the Federal Road Safety Commission (FRSC), Shehu Mohammed, Lokpobiri acknowledged that while it is not ideal to rely on tankers to transport petroleum products, this will remain necessary until the pipelines are restored.

    Lokpobiri expressed concern over the frequency of tanker related accidents, a situation he attributed to Nigeria’s current reliance on road transportation for fuel distribution. He noted that under normal circumstances, petroleum products should be transported through pipelines to central locations before being transferred to their final destinations. However, most of the country’s pipelines have exceeded their operational lifespans, and the cost of replacing them is prohibitive.

    “Ordinarily, petroleum products should be moved through pipelines, but many of these pipelines have outlived their usefulness, and the cost of replacing them is enormous,” Lokpobiri said. “There have been no major investments in the oil sector upstream, midstream, or downstream for 12 years prior to this administration. This lack of investment was due to governance instability and delays in passing the Petroleum Industry Act (PIA).”

    He recalled that the PIA was first introduced during his time in the Senate in 2007/2008 but was not passed until 2021, delaying much-needed reforms. “Investors want to bring their money into environments with certainty. The lack of investment in Nigeria was due to concerns about governance and fiscal conditions, which were seen as globally uncompetitive. But things are changing now, and confidence is returning. That is why we have projects like Dangote Refinery and several modular refineries coming up,” the minister added.

    Lokpobiri stressed that the government is committed to supporting local refineries and addressing the challenge of distributing petroleum products to their final destinations. He urged the FRSC to ensure that all vehicles used to transport petroleum products are certified roadworthy, with properly trained drivers to reduce the risk of accidents.

    “We need to ensure tanker drivers are certified and the trucks carrying these products are roadworthy. This is not only in the interest of the drivers but also the public. It is vital that products transported from depots are delivered safely to their destinations,” Lokpobiri emphasised.

    He also highlighted the ministry’s commitment to working closely with the FRSC, offering support in areas such as driver training and the provision of resources like ambulances and vehicles to improve road safety. “We are committed to enhancing our collaboration with the FRSC. We will take road safety seriously and support you in whatever ways we can, including providing training and material support,” Lokpobiri said.

    The minister further stressed the importance of re-establishing the use of pipelines for transporting petroleum products. However, he acknowledged the current challenges posed by vandalism and criminal activity, which have rendered most of the country’s pipelines inoperable.

    “Today, if you try to use the pipelines, perhaps only 10% of the product will reach its destination because the pipes have been severely compromised. Criminals puncture the pipelines to siphon oil, seeing it as public property ripe for theft. We are working on bringing investors to restore these pipelines,” Lokpobiri said.

    To address pipeline vandalism, the federal government is exploring the deployment of technology to detect infractions in real time. “We are implementing a command and control system that will allow us to monitor pipeline integrity and detect any tampering immediately,” Lokpobiri explained.

    In response, FRSC Corps Marshal Shehu Mohammed reaffirmed the agency’s commitment to road safety, particularly with the current reliance on road transportation for petroleum products. Mohammed highlighted the existing collaboration between the FRSC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority to ensure the safety of tanker trucks transporting oil across the country.

    “We have staff stationed at tank farms to ensure that all safety valves are in place on tankers before they leave. In the event of road crashes, this prevents oil spills that could lead to fires. We are also working to certify all vehicles, including tankers and trailers, ensuring only roadworthy vehicles are allowed to operate,” Mohammed said.

    He added that the FRSC has developed initiatives like the Road Transport Safety Certification Scheme to reduce the number of accidents on Nigeria’s roads by ensuring that vehicles meet safety standards. “This is part of our broader strategy to reduce road crashes, particularly those involving petroleum tankers,” Mohammed noted.

    Dangote Refinery FRSC Heineken Lokpobiri
    Goli Innocent
    Goli Innocent

      Goli Innocent Goli Innocent is an energy journalist and digital strategist covering Nigeria’s downstream oil sector. He delivers real-time analysis on logistics, pricing, and policy for platforms and stakeholders.

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