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‎Infrastructure Stability Key to Unlocking Full Oil Revenue Potential – NDPA

Anayo Onukwugha by Anayo Onukwugha
8 months ago
in News
NDPA
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‎The Niger Delta Progressive Alliance (NDPA) has emphasized 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.
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‎NDPA, in a policy stated released in Port Harcourt yesterday, noted that recent production gains demonstrate a critical economic lesson that protecting operational assets can deliver faster fiscal returns than pursuing new exploration projects.
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‎The statement, which was signed by the group’s national president, Nse Udoh, stated that 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.
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‎“The geology did not change; governance and infrastructure reliability did,” the Alliance stated. “This recovery underscores that disciplined protection of pipelines and export corridors is fundamentally an economic intervention, not merely a security exercise,” it said.
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‎NDPA explained that at an average oil price of $70–$80 per barrel, every additional 100,000 barrels per day secured within the legal export chain translates to roughly $2.5–$3- billion in annual export value saying that s sustained 500,000-barrel increase could stabilize national revenue by an estimated 12–15 billion dollars annually.
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‎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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‎NDPA stressed that crude oil contributes to the majority of Nigeria’s foreign exchange earnings, meaning uninterrupted delivery to export terminals directly influences exchange-rate stability, investor confidence, and public finance performance.
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‎The group called for clearer differentiation between production figures and monetized receipts, warning that barrels produced do not benefit the economy unless they are securely transported, exported, and paid for.
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‎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 minimize disruption and financial volatility.
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‎“Nigeria’s ongoing shift toward corridor-based accountability and integrated surveillance reflects global best practice,” the Alliance adding that predictable supply chains reduce insurance costs, improve financing conditions, and strengthen sovereign risk perception.
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‎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.
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‎“When communities see stability translating into livelihoods and development, cooperation replaces conflict. Ownership displaces alienation,” NDPA said.
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‎It urged policymakers 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.
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‎“Exploration takes years to mature, infrastructure stabilization yields returns immediately. Protecting what already exists is among the most practical and highest-yield economic decisions available to the nation,” ” the Alliance concluded.
‎It called for sustained institutional coordination, performance measurement, and investment in monitoring technologies to consolidate recent gains and ensure long-term production reliability

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Anayo Onukwugha

Anayo Onukwugha

Anayo Onukwugha is a multiple award‑winning journalist with more than 20 years of experience. A former assistant secretary and acting secretary of the Rivers State Council of the Nigeria Union of Journalists, he now works with LEADERSHIP Newspaper. His articles address issues relating to the oil‑rich Niger Delta region, Nigeria and broader global topics. He shares his reporting journey on X at @aonukwugha.

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