Niger Delta Stakeholders Push for Decentralized Pipeline Security

Stakeholders from the Niger Delta are calling for the decentralization of pipeline security responsibilities to improve the effectiveness of combating oil theft. They argue that the current arrangement, which relies on a single contractor, has proven ineffective, as evidenced by the persistent illegal bunkering and vandalism.

According to reports, Nigeria lost 93.74 million barrels of crude oil in the first eight months of 2025, translating to a revenue loss of approximately 6.85 billion USD at an average price of 73.06 USD per barrel. The actual daily production fell significantly below the budget target, averaging 1.673 million barrels per day against a projected 2.06 million barrels, leading to a revenue gap of 941.23 billion Naira from July to August 2025.

The stakeholders propose a decentralized model involving multiple local firms with knowledge of the terrain to enhance enforcement and performance standards. They also call for an independent audit of current contracts to ensure transparency and competitiveness.