Pipeline vandalism: NNPC loses N190bn

Andrew Yakubu, NNPC GMD

In a span of two years, between 2011 and 2012 The Nigerian National Petroleum Corporation (NNPC) has lost about N190bn to pipeline vandals.

This was disclosed by the Spokesman for PPMC, Mr. Nasir Imodagbe, who said at that time under review when revenue lost to crude theft decreased, the loss to refined products increased exponentially.

He said in 2011, pipeline vandalism caused the company a huge loss of N90bn while refined products gulped up to N20bn.

In 2012 the figures however, changed to N40bn.

He said within the two years they had recorded pipeline vandalism of 55.55 per cent and refined theft rose to 100 per cent.

“Crude oil theft happens mainly in the Niger Delta. This reduced because of increased security operations in the region. However, product theft has been on the increase especially in the South West,” he said.

The Group Managing Director, NNPC, Mr. Andrew Yakubu, had in December 2012 lamented over the rising activities of pipeline vandals.

He had said, “We had over 774 break points since August 2012 from Atlas Cove to the Ilorin depot. Between Atlas Cove and Mosimi depot, we recorded 181 break points; from Mosimi to Ibadan, we had 421 ruptured points; and from Mosimi to Ore, we recorded 50 vandalised points. Also between Ibadan and Ilorin, we had 122 break points.

“These are critical national assets and we must begin to see them in that light. PIB or no PIB, privatisation or no privatisation, no industry can survive under this kind of arrangement.

“We have a fallback strategy, which we have already activated to ensure uninterrupted supply of products. Don’t forget that we had the worst time when the line was shut completely in August after the Arepo incident, but we have restored the line and it started working and Nigerians felt the impact, only for the vandals to strike again.”