‘Infrastructure stability key to unlocking Nigeria’s oil revenue potential’
Niger Delta Progressive Alliance (NDPA) has declared that safeguarding existing oil and gas infrastructure in Niger Delta remains one of the most effective strategies for strengthening national revenue. NDPA, a
Niger Delta Progressive Alliance (NDPA) has declared that safeguarding existing oil and gas infrastructure in Niger Delta remains one of the most effective strategies for strengthening national revenue.
NDPA, a civil society group, noted that being truly committed to the course would equally promote macroeconomic stability and accelerate sustainable development across Nigeria.
The group spoke in a policy statement issued recently.
NDPA noted that recent production gains demonstrated a critical economic lesson that protecting operational assets could deliver faster fiscal returns than pursuing new exploration projects.
According to the statement, signed by NDPA National President, Nse Victor Udoh, 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 geology did not change; governance and infrastructure reliability did,” NDPA said.
“This recovery underscores that disciplined protection of pipelines and export corridors is fundamentally an economic intervention, not merely a security exercise.’’
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 sustained 500,000-barrel increase could stabilise national revenue by an estimated 12–15 billion dollars annually.
Read Also: Tinubu to Akume, Alia: mend fences for peace, development in Benue
The group described oil theft not as an isolated criminal activity, but as a structural economic disruption that weakened foreign exchange inflows, distorted fiscal planning and increased 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.”
NDPA says crude oil contributes 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.
The group 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 like the United States and Norway, NDPA observed that pipeline networks in those jurisdictions were 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 said, adding 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 incidence of sabotage, noting that regions where local stakeholders were economically integrated into infrastructure protection frameworks consistently recorded lower breach frequencies.
“When communities see stability translating into livelihoods and development, cooperation replaces conflict. Ownership displaces alienation,” NDPA said.
NDPA 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.
“Exploration takes years to mature, infrastructure stabilisation yields returns immediately. Protecting what already exists is among the most practical and highest-yield economic decisions available to the nation,” the body concluded.
