Protecting Nigeria’s Oil Infrastructure Key to Revenue Growth, Says Niger Delta Group
Port Harcourt — Safeguarding existing oil and gas infrastructure is among the most effective strategies for boosting national revenue, enhancing macroeconomic stability, and advancing sustainable development in Nigeria, according to the Niger Delta Progressive Alliance (NDPA).
In a policy statement, the alliance highlighted recent production increases as evidence that securing operational assets yields faster fiscal returns than new exploration. Nigeria’s crude oil output rose from approximately 1.18 million barrels per day (bpd) in August 2023 to over 1.7 million bpd by late 2024—an improvement of nearly 500,000 bpd achieved without new reserve discoveries.
“The geology did not change; governance and infrastructure reliability did,” the statement, signed by NDPA National President Amb. Nse Udoh, read. “This recovery underscores that disciplined protection of pipelines and export corridors is fundamentally an economic intervention, not merely a security exercise.”
At an average oil price of $70–$80 per barrel, the alliance calculated that securing an additional 100,000 bpd within the legal export chain generates roughly $2.5–$3 billion in annual export value. A sustained 500,000-bpd increase could therefore stabilize national revenue by an estimated $12–$15 billion annually.
NDPA characterised oil theft not as isolated crime but as a structural economic disruption that undermines foreign exchange inflows, complicates fiscal planning, and increases borrowing pressures. “When pipelines are breached, the nation loses far more than crude volumes,” Udoh stated. “It loses budget certainty, currency stability, and development momentum.”
Given that crude oil constitutes the majority of Nigeria’s foreign exchange earnings, uninterrupted delivery to export terminals directly affects exchange-rate stability, investor confidence, and public finance performance. The group urged clearer differentiation between production volumes and monetised receipts, warning that unsecured barrels do not benefit the economy.
Drawing comparisons with the United States and Norway, NDPA noted that pipeline networks in those countries are treated as critical national infrastructure with rigorous monitoring systems to minimise disruption. “Nigeria’s ongoing shift toward corridor-based accountability and integrated surveillance reflects global best practice,” the statement said, adding that predictable supply chains reduce insurance costs and improve sovereign risk perception.
The alliance also emphasised host-community participation, observing that regions where local stakeholders are economically integrated into protection frameworks report fewer sabotage incidents. “When communities see stability translating into livelihoods and cooperation replaces conflict,” NDPA said.
Calling for theft reduction to be prioritised within Nigeria’s broader energy reform agenda, NDPA described it as one of the few interventions capable of delivering measurable fiscal benefits within a single budget cycle. “Exploration takes years to mature; infrastructure stabilisation yields returns immediately,” the statement concluded, urging sustained institutional coordination, performance measurement, and investment in monitoring technologies to consolidate recent gains.
