Kyari decries theft, vandalism as threats to Nigeria’s energy sufficiency
- Over 5,686 illegal refineries destroyed, 4,480 stealing connections removed
Sopuruchi Onwuka
The Nigerian National Petroleum Company Limited has tasked educational institutions in the country to join forces with the petroleum industry in evolving solutions to challenges that threaten the nation’s energy security.
The Group Chief Executive Officer, Mallam Mele Kyari, declared at a Faculty Lecture at the Obafemi Awolowo University (OAU), Ile-Ife, Osun State, that the academia has a role in furnishing the industry with research outcomes that address challenges in the energy sector.
Mallam Kyari listed the challenges facing the energy sector in Nigeria to include crude oil and products theft, associated facility vandalism and illegal refineries. He also pointed at rising demand from rapid urbanization and growing population.
He added that government has since dismantled commercial disincentives in the domestic petroleum market and raised value for the stakeholders through price deregulation.
On crime enterprises that plague the industry, he pointed out that NNPC Limited has since deployed innovative technological strategies at its command and control centers to provide real time surveillance that enables the security agencies track down oil thieving activities and illegal operations in the industry.
He stated that the command and control center “provides livestreaming of surveillance data to security forces, contributing to the detection and destruction of over 5,686 Illegal Refinery (IR) sites and the removal of 4,480 Illegal Connections (ICs) from 2021 to the present.”
In his lecture, Kyari identified energy conservation, diversification, and efficiency measures as major avenues for enhancing energy security.
Addressing the projected rapid population growth, Kyari harped on the importance of finding solutions to ensure sustainable energy security for the benefit of current and future generations.
He underscored the intensified competition for vital resources and urbanization drive, which would lead to a doubling of Nigeria’s energy demand by 2050.
On the challenges posed by pipeline vandalism and crude oil theft, the GCEO observed that the issues have impacted NNPC Ltd.’s operations, stressing that the establishment of a command-and-control center has aided the detection and destruction of illegal refinery sites, removal of illegal connections, thereby addressing vandalism across operating corridors since 2021.
Acknowledging the severity of vandalism and oil theft, Kyari hinted at a strategic shift that focuses on increased products distribution through the expanded retail assets of the NNPC Limited nationwide. He described the company’s retail arms as the largest single downstream company in sub-Saharan Africa after acquiring OVH retail stations and associated downstream infrastructure in 2021.
While underscoring the company’s transformation into a fully commercial limited liability energy company following the passage of the Petroleum Industry Act in 2021, Kyari said the removal of fuel subsidies has allowed the NNPC Limited play a more active commercial role, ensure profitability and deliver greater value to Nigeria’s growing population.
