In a recent statement at the Energy and Labour Summit 2024, Heineken Lokpobiri, the Minister of State for Petroleum Resources, addressed a significant concern facing Nigeria’s oil sector: the lack of funds for repairing the country’s aging pipelines. The summit, organized by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) in Abuja, provided a platform for Lokpobiri to voice this pressing issue.

Lokpobiri highlighted that both the Nigerian National Petroleum Company Limited (NNPC) and the Federal Government are currently unable to allocate sufficient financial resources to overhaul the country’s deteriorating pipeline infrastructure. According to the Minister, these pipelines are not only old but have also become corroded and expired, rendering them inefficient and unsafe.

The Minister’s remarks come amid discussions about the need to ramp up oil production in Nigeria. While the country has the potential to produce more than 1.7 million barrels of crude oil per day, the ability to transport this oil to export terminals is severely compromised due to the poor state of the pipelines. This infrastructure issue poses a substantial barrier to maximizing Nigeria’s oil production capabilities and securing optimal revenue from oil exports.

The repair and upgrade of these pipelines are critical not only for ensuring safe and efficient transportation of crude oil but also for addressing broader challenges related to energy infrastructure in Nigeria. Without adequate funding for these essential repairs, Nigeria’s ability to maintain and enhance its oil production and export operations remains at risk.

As the country faces these challenges, the government and industry stakeholders will need to explore alternative funding solutions and strategic investments to address the pipeline infrastructure crisis and support the sustainable growth of Nigeria’s oil sector.