• Rise in pipeline vandalism may affect revenue
• N3b lost daily as Aiteo shuts down Nembe pipeline
Barely two weeks after the National Assembly passed the N8.916 trillion budget for 2019, the implementation of the financial plan is already being threatened by the spate of vandalism of oil pipelines across the country.
Nigeria has set oil production target of 2.3 million barrels per day (mbpd) at a price benchmark of $60 to support the 2019 budget. The development has led to force majeure (a legal way of cancelling or delaying deliveries over unforeseen situations) by International Oil Companies (IOCs) that threatens the nation’s revenue that is over 90 per cent dependent on oil exports.
Inflows of foreign exchange, which were pegged at N305/$1 in the budget are also threatened even as lives and the environment of the host communities remain endangered.
Although the Nigerian National Petroleum Corporation (NNPC) could not comment on the crude export losses due to shut-ins,…
