Pipeline Theft Nearly Wiped Out, Says NNPC
Abuja, Nigeria – The Nigerian National Petroleum Company Limited (NNPC Ltd.) has announced a groundbreaking achievement in its fight against crude oil theft, declaring that pipeline theft has been nearly eradicated across its network. The milestone, credited to coordinated efforts by Nigeria’s defence and intelligence agencies, marks a significant step toward restoring billions in lost revenue and boosting investor confidence in Africa’s largest oil producer.
A Dramatic Turnaround
Speaking at the African Chiefs of Defence Staff Summit in Abuja on August 25, 2025, NNPC Group Chief Executive Officer Bayo Ojulari revealed that pipeline and terminal receipts have reached nearly 100% efficiency, a stark contrast to three years ago when up to 70% of crude transported through certain pipelines was lost to theft and sabotage. “Today, I can proudly report that our pipeline and terminal receipts are attaining close to 100%,” Ojulari stated, highlighting improved security, particularly in the Niger Delta, where most of Nigeria’s oil infrastructure is located.
The turnaround follows a multi-pronged strategy initiated in 2021, which included hiring private security firms to complement national security efforts and leveraging advanced technology to monitor pipelines. Ojulari noted that crude oil theft, often orchestrated by “sophisticated international syndicates,” has been a transnational crime exploiting regional security gaps, underscoring the need for continental collaboration.
Economic and Industry Impacts
The near-elimination of pipeline theft is poised to transform Nigeria’s oil sector. In 2022, the country lost over $2 billion to oil theft, with production dropping to a low of 1 million barrels per day (bpd) in 2016 due to militancy and vandalism in the Niger Delta. The recent success has boosted output, with regulators projecting production could surpass 2.5 million bpd by 2026, a level last seen in 2005.
This achievement is expected to restore billions in revenue, reduce environmental damage from illegal tapping, and attract foreign investment previously deterred by security concerns. The NNPC’s efforts align with broader initiatives, including the $2.8 billion Ajaokuta-Kaduna-Kano (AKK) gas pipeline project, now 86% complete and set for mechanical completion by November 2025.
Challenges and Ongoing Efforts
Despite the progress, challenges persist. Between 2021 and 2024, NNPC dismantled over 5,500 illegal refineries and nearly 4,500 unauthorized pipeline connections in the Niger Delta, indicating the scale of the problem. The company’s Command and Control Center has been instrumental in detecting these facilities, with real-time surveillance data aiding security forces.
Posts on X reflected public optimism, with @ReutersAfrica noting on August 25, 2025, that NNPC’s success could be a “major boost” for Nigeria’s economy. However, some users urged sustained vigilance to prevent a resurgence of theft.
Looking Ahead
Ojulari reaffirmed NNPC’s commitment to collaborating with military and intelligence agencies, emphasizing the need for broader African frameworks to ensure energy security. The company is also rehabilitating pipelines and depots under a Finance, Build, Operate, and Transfer (FBOT) model to enhance infrastructure resilience.
As Nigeria eyes a revitalized oil and gas sector, the near-elimination of pipeline theft stands as a testament to strategic partnerships and technological innovation. The development not only strengthens Nigeria’s economic outlook but also positions it as a model for combating resource theft across the continent.