Pipeline Security Contract Has Significantly Reduced Crude Oil Theft – Lokpobiri
The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has defended the Federal Government’s engagement of private security firms in protecting Nigeria’s oil and gas infrastructure, saying the initiative has recorded remarkable success in combating crude oil theft and pipeline vandalism.
Speaking at the Plenary Session of the 2026 NBA Law Week on June 5 in Yenagoa, Lokpobiri noted that pipeline security was once one of the biggest challenges confronting Nigeria’s oil industry, leading to severe losses in crude oil production and government revenue.
According to the minister, the government adopted a proactive approach by partnering with private security contractors who worked closely with conventional security agencies, providing additional resources and support needed to safeguard critical oil assets.
“The security of our pipelines was a major challenge at the time. The government came under significant pressure to bring private security into the sector. Today, the results speak for themselves, with over 80 percent success recorded in reducing crude oil theft and illegal activities around our oil facilities,” he said.
Lokpobiri recalled that Nigeria’s daily crude oil losses from theft and pipeline vandalism had reached alarming levels, severely affecting national revenue, especially during periods when crude oil prices exceeded $100 per barrel.
He stressed that the security partnership had helped restore confidence in the sector, increase production levels and improve government earnings.
The minister explained that the contracts awarded for pipeline surveillance were lawful and followed due process. He disclosed that the arrangement was structured as a “2+1” contract model, providing an initial two-year term with an additional one-year extension.
“What we did was what many governments do. We awarded a two-plus-one-year contract, making it a three-year arrangement. The objective was to achieve stability and secure our oil assets, and the results have been encouraging,” he stated.
Lokpobiri, however, warned that pipeline vandalism and crude oil theft continue to have devastating consequences on host communities and the environment.
According to him, whenever pipelines are breached, the immediate victims are often residents whose livelihoods depend on farming and fishing.
“Those who suffer most are members of the host communities. Oil spills destroy farmlands, pollute rivers and affect fishing activities. Beyond the loss of government revenue, communities bear the environmental and economic burden,” he said.
The minister emphasized that every act of vandalism carries significant economic and environmental costs, requiring extensive remediation efforts in addition to the revenue lost from disrupted production.
He further noted that while government interventions have yielded positive results, sustainable protection of oil infrastructure will require continued collaboration among government agencies, security operators, host communities and industry stakeholders.
Lokpobiri concluded by stressing that many of Nigeria’s challenges are largely self-inflicted, urging citizens to take collective responsibility in protecting national assets and supporting efforts aimed at boosting the country’s economic growth.
The minister made the remarks during the Plenary Session of the 2026 NBA Law Week held on June 5, 2026, in Yenagoa, Bayelsa State.
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