Fuel smuggling from Nigeria to neighboring countries remains a persistent issue, one that, according to the Federal Government, cannot be entirely eradicated. This was the sobering acknowledgment made by the Minister of State for Petroleum Resources, Heineken Lokpobiri, at the 2024 Energy and Labour Summit in Abuja.
Lokpobiri highlighted several contributing factors, including Nigeria’s aging oil pipelines, which have made illegal fuel transport relatively easy. He pointed out that many of the country’s pipelines, some dating back to the 1960s and 1970s, are corroded and vulnerable to vandalism. “Anybody can just go and tap it, and the thing is busted,” the minister remarked, explaining how the poor state of infrastructure facilitates smuggling activities.
Furthermore, Lokpobiri revealed that the Nigerian National Petroleum Company Limited (NNPCL) lacks the necessary funds to rebuild these deteriorating pipelines, which continues to hamper efforts to curb smuggling. He also emphasized that as long as NNPCL imports fuel and sells it below the landing cost, smuggling will persist. “If NNPC imports PMS and sells to marketers at perhaps N600 or below, there’s no way that smuggling can stop,” Lokpobiri stated.
The minister also pointed to the complicity of security agents at the borders as another major obstacle. Even with increased surveillance, Lokpobiri admitted that smugglers continue to operate with ease, adding that “when smugglers are taking the products outside the country, even if you put all the policemen on the road, they are Nigerians; you and I know the answer.”
To address these challenges, Lokpobiri called for a public-private partnership (PPP) to revamp Nigeria’s energy infrastructure. He argued that relying solely on government efforts would be insufficient, stressing the need to adopt a global model that engages the private sector in resolving these infrastructure issues.
Additionally, Lokpobiri underscored Nigeria’s strategic role in ensuring energy security across West Africa, noting that the country’s fuel supply often finds its way across the region. This, he suggested, is why smuggling is an almost inevitable reality.
The minister also raised concerns about Nigeria’s ability to meet both domestic and export obligations, given current crude production levels. Supporting local refineries, such as the Dangote Refinery, with sufficient feedstock will be crucial, but this can only happen if production is ramped up. “It is only when we ramp up production that the midstream and downstream sectors can also be successful,” he emphasized.
In conclusion, Lokpobiri reiterated the importance of increasing crude production and fostering local refining to ensure healthy competition among refineries. Without a sufficient supply of crude, the vision of a self-sustaining energy sector in Nigeria remains distant.
