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From Tony John, Port Harcourt
The Niger Delta Progressive Alliance (NDPA) has emphasised that safeguarding existing oil and gas infrastructure remains one of the most effective strategies for strengthening national revenue, improving macroeconomic stability, and accelerating sustainable development across Nigeria.
In a policy statement released by the Alliance, NDPA noted that recent production gains demonstrate a critical economic lesson that protecting operational assets can deliver faster fiscal returns than pursuing new exploration projects.
According to the statement signed by Nse Victor Udoh, National President, NDPA, Nigeria’s crude oil output increased from approximately 1.18 million barrels per day in August 2023 to over 1.7 million barrels per day by late 2024—an improvement of nearly 500,000 barrels daily without the discovery of new reserves.
The group stated: “The geology did not change; governance and infrastructure reliability did. This recovery underscores that disciplined protection of pipelines and export corridors is fundamentally an economic intervention, not merely a security exercise.”
It explained that at an average oil price of $70 to $80 per barrel, every additional 100,000 barrels per day secured within the legal export chain translates to roughly $2.5 billion to $3 billion in annual export value.
According to NDPA, a sustained 500,000-barrel increase could stabilise national revenue by an estimated $12 billion to $15 billion annually.
The Alliance described oil theft not as an isolated criminal activity, but as a structural economic disruption that weakens foreign exchange inflows, distorts fiscal planning, and increases borrowing pressures.
Udoh said: “When pipelines are breached, the nation loses far more than crude volumes. It loses budget certainty, currency stability, and development momentum.”
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The NDPA boss stressed that crude oil contributes the majority of Nigeria’s foreign exchange earnings and uninterrupted delivery to export terminals directly influences exchange-rate stability, investor confidence, and public finance performance.
The group, however, called for clearer differentiation between production figures and monetised receipts, warning that barrels produced do not benefit the economy unless they are securely transported, exported, and paid for.
Drawing comparisons with advanced energy-producing nations such as the United States and Norway, NDPA observed that pipeline networks in those jurisdictions are treated as critical national infrastructure, with rigorous monitoring systems designed to minimise disruption and financial volatility.
“Nigeria’s ongoing shift toward corridor-based accountability and integrated surveillance reflects global best practice.”
The group added that predictable supply chains reduce insurance costs, improve financing conditions, and strengthen sovereign risk perception.
The statement further highlighted the role of host-community participation in reducing repeat incidents of sabotage, noting that regions where local stakeholders are economically integrated into infrastructure protection frameworks consistently record lower breach frequencies.
The NDPA urged policy makers to prioritise theft reduction within Nigeria’s broader energy reform agenda, describing it as one of the few interventions capable of delivering measurable fiscal benefits within a single budget cycle.
It called for sustained institutional coordination, performance measurement, and investment in monitoring technologies to consolidate recent gains and ensure long-term production reliability.
