Nigeria Loses N53b to Pipeline Vandalisation
From Sufuyan Ojeifo in Abuja, 02.16.2008
Awhopping N53.8 billion was lost by Nigeria to petroleum pipeline vandalisation in 2006 and 2007, according to the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Engineer Abubakar Yar’Adua.
Yar’Adua disclosed this yesterday to the Senate Committee on Petroleum (Downstream Sector), headed by Senator Emmanuel Paulker.
Yar’Adua, who led the corporation’s management to an interactive session, specifically said that while N36.6 billion was lost in 2006, the sum of N16.9 billion was lost in 2007.
The Port Harcourt refineries recorded the highest financial loss of N21 billion in 2006, going by the breakdown that was given to the committee at the session.
Yar’Adua told the committee that the corporation had concluded plans to build mega stations in some key West African countries such as Ghana, Togo and Benin Republic, stressing that the measure is aimed at resolving the trans-border smuggling of refined petroleum products .
He updated the Senate committee on the mega station projects in the country, saying that the corporation was yet to complete the 37 mega stations it planned to build across the country.
He said, “Only 25 have been completed leaving, a balance of 12. The remaining stations will soon be completed in addition to the 12 floating stations the NNPC is constructing in the riverine areas of the Niger Delta region.”
The NNPC chief expressed concern over the inability of the country to maintain its refineries, even as he admitted that there was the need to build more refineries in the country. “The past administrations simply built refineries to make money but they failed to invest in their maintenance,” he stressed.
According to him, "That is why the issue of Turn Around Maintenance (TAM) which is supposed to be done every two years was never accorded any priority. And so, the refineries don't operate efficiently and sufficiently."
He said that the Senate Committee should impress it on the Executive arm of government the necessity for it to bolster the Corporation's plan to build a refinery each in Lagos and Cross River States .
The Senate Committee Chairman, Senator Paulker shared the position of the NNPC GMD on the need to ensure adequate TAM for the refineries and to build more refineries in the country in order to boost the supply of refined petroleum products for local consumption.
He said that the Senate Committee was worried about the situation in the downstream sector, stressing that the incessant hike in the prices of the products, importation of refined products and adulteration of the products were some of the areas of concern that compelled the Committee to convene the interactive session.
Paulker expressed the hope that critical issues raised as well as suggestions that would improve the sector would be addressed with a view to providing a way out of the perennial problems so identified.
