The Nigerian National Petroleum Company Limited (NNPC) actively seeks private investment to modernize its dormant 5,120-kilometer pipeline network. The company aims to modernize the network to support its ongoing refinery rehabilitation efforts, which are estimated to cost $2.9 billion.

This announcement comes amid growing concerns from industry experts and lawmakers about the state of Nigeria's aging pipeline infrastructure, which has been plagued by vandalism, oil theft, and environmental pollution.

NNPC Group Managing Director Mele Kyari acknowledged the challenges posed by the current pipeline system, citing high security costs and operational inefficiencies. To address these issues, the company plans to adopt advanced technologies and innovative financing models.

“We are exploring the Build-Operate-Transfer (BOT) model to attract private investment for the construction of new, high-integrity pipelines,” Kyari said. “This approach will not only reduce costs but also enhance security and environmental sustainability.”

Lawmakers, including House of Representatives Committee on Petroleum Resources (Upstream) Chairman Alhassan Doguwa, emphasized the urgent need to address pipeline vandalism and oil theft. Doguwa called for a multi-faceted approach involving enhanced security, technological advancements, and stricter enforcement of regulations.

Industry experts also highlighted the importance of pipeline infrastructure for Nigeria's economic development and energy security. Geoff Onuoha, Chairman of the Pipeline Professionals Association of Nigeria (PLAN), noted the significant costs associated with pipeline construction and operation, emphasizing the need for robust protection and maintenance.