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Key stakeholders in Nigeria’s oil and gas sector have called for a cautious approach to the Nigerian National Petroleum Company Limited’s (NNPCL) ongoing pipeline and depot rehabilitation project.
NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, confirmed that the company has commenced the rehabilitation of pipelines and depots to strengthen the country’s energy infrastructure. “We can assure Nigerians that NNPCL’s pipeline and depot rehabilitation project is imbued with a structured financial model, strategic partnerships, and committed execution. The initiative is set to resolve longstanding challenges in petroleum supply and strengthen the country’s energy infrastructure for the long term,” he said.
Soneye acknowledged that funding remains a major challenge but stated that the company has adopted a Finance, Build, Operate, and Transfer (FBOT) model to address the issue. “We are exploring creative and innovative approaches to ensure a cost-effective funding model to proceed with the pipeline and depot rehabilitation,” he explained.
The rehabilitation, expected to be completed in two to three years, aims to ensure a steady supply of crude oil to refineries, seamless product distribution, reduced reliance on fuel tankers, lower transportation costs, and improved energy security.
Despite the expected benefits, security analysts and industry experts have expressed concerns about the project’s feasibility without proper security and technology. Security consultant Royson Stephen Onyishi warned that pipeline vandalism would persist unless modern monitoring systems are deployed. “An effective monitoring system can help track the activities of vandals and oil thieves. Most of these measures have been deployed before, yet cases of vandalism continue because a stage in monitoring fails or there is compromise among the team, thereby sabotaging the government’s effort,” Onyishi stated.
He emphasized the need for advanced security technology to detect and prevent vandalism. “Modern technology deployed along the pipelines will give instant notifications on the systems, stating the exact location where the act is being attempted,” he said. He also called for engagement with community heads, as many vandals operate within local communities. “Community engagement cannot be overemphasized. These vandals are mostly within the community or neighboring communities. Proper engagement will help in securing the pipelines,” he added.
Ibrahim Shehu Yahaya, Secretary General of the Petroleum Products Dealers Association of Nigeria (PEDAN), pointed out that while pipeline transportation is a global trend, there are significant challenges in its implementation. “No one, to my knowledge, is talking about this prospect because it will go against the interests of the most powerful unions in the nation, the National Union of Petroleum and Natural Gas Workers (NUPENG) and Petroleum Tanker Drivers (PTD),” Yahaya said.
He also highlighted failed attempts by private companies to collaborate with the Nigerian Railway Corporation for petroleum haulage. “The experience of Oando Plc has put to rest that prospect, and there are companies that are willing to partner with the Nigerian Railway Corporation on the freight and haulage of goods and products but have met brick walls despite their persistent efforts,” he said.
Onyishi urged the government to implement strict security measures, including training security personnel and deploying advanced surveillance technology. “Before now, a monitoring agency within the government was created to oversee the activities of vandals. How well were they able to sustain the fight against vandals? What are their response plans for detecting, delaying, or denying the vandals the opportunity to continue their activities?” he questioned.
He reiterated that continuous training and retraining of those involved in securing the pipelines are necessary. “The deployment of modern technology is highly cost-effective as it is a faster measure to curb vandalism effectively,” he added.
Despite concerns, Soneye assured that NNPCL has a well-structured plan to execute the project. “Our plan is not just to fix old pipelines but to build new ones and modernize storage terminals. We are also deploying advanced technology to prevent vandalism and ensure the security of our infrastructure,” he stated.
While financial constraints persist, he reiterated that NNPCL remains committed to seeing the project through, ensuring a more sustainable and efficient petroleum distribution network in Nigeria.
