Military urges pipeline metering, as Nigeria loses billions to oil theft

The Defence Headquarters has renewed its call for the metering of crude oil pipelines across Nigeria to combat the perennial problem of oil theft.

Director of Defence Media Operations, Maj Gen Edward Buba, emphasized, during a press briefing in Abuja on Thursday, that metering would enable accurate tracking of daily crude oil production.

“We increased surveillance over pipeline infrastructures and cooperation with oil sector stakeholders. We also pushed for pipeline metering to accurately know what the nation produces daily,” Maj Gen Buba explained.

“Although metering hasn’t been implemented, our surveillance and military actions have led to increased crude oil production, as reported.”

Nigeria’s oil production has been plagued by theft and instability, with average daily production dropping from 2.085 million barrels between 2000 and 2010 to 1.732 million barrels per day from 2011 to 2020.

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The Economic Intelligence Unit forecasts a tentative increase in production to 1.4 million barrels per day by 2028, citing the near completion of the Dangote refinery and stability in the Niger Delta.

The Defence Headquarters’ push for metering aims to address the significant revenue losses due to oil theft. Maj Gen Buba’s statement underscores the need for transparency and accountability in Nigeria’s oil sector.

Key statistics from stakeholders such as Nigerian National Petroleum Corporation (NNPC), International Energy Agency (IEA) and Nigerian Extractive Industries Transparency Initiative (NEITI) estimate the scale of oil theft:

1. Estimated annual loss: $10 billion – $20 billion (approximately ₦4 trillion – ₦8 trillion)
2. Daily oil production loss: 100,000 – 200,000 barrels
3. Affected regions: Primarily Niger Delta, but also impacts national economy

To combat pipeline oil theft, Nigeria must adopt a multi-faceted approach, involving government, private sector, and local communities.

Implementing effective metering and monitoring systems, upgrading infrastructure, and addressing socio-economic factors can help reduce losses and ensure sustainable development.

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