The Niger Delta Progressive Alliance (NDPA) has emphasised that securing existing oil and gas infrastructure is critical to strengthening national revenue, enhancing macroeconomic stability, and accelerating sustainable development in Nigeria.
In a policy statement signed by Amb. Nse Udoh, NDPA noted that recent production gains demonstrate how protecting operational assets can deliver faster fiscal returns than pursuing new exploration projects. Nigeria’s crude oil output rose from approximately 1.18 million barrels per day in August 2023 to over 1.7 million barrels per day by late 2024, an increase of nearly 500,000 barrels daily, achieved without discovering new reserves.
“The geology did not change; governance and infrastructure reliability did. This recovery underscores that disciplined protection of pipelines and export corridors is fundamentally an economic intervention, not merely a security exercise,” the statement said.
NDPA explained that at an average oil price of $70–$80 per barrel, each additional 100,000 barrels per day secured translates to roughly $2.5–$3 billion in annual export value. A sustained 500,000-barrel increase could stabilise national revenue by an estimated $12–$15 billion annually.
The Alliance described oil theft not as an isolated criminal activity, but as a structural disruption that weakens foreign exchange inflows, distorts fiscal planning, and increases borrowing pressures. “When pipelines are breached, the nation loses far more than crude volumes. It loses budget certainty, currency stability, and development momentum,” Udoh said.
NDPA highlighted that uninterrupted crude delivery is essential for foreign exchange earnings, exchange-rate stability, investor confidence, and public finance performance. The group called for clearer differentiation between production figures and monetised receipts, noting that barrels produced only benefit the economy when securely transported, exported, and paid for.
Drawing comparisons with countries like the United States and Norway, the Alliance observed that pipeline networks are treated as critical national infrastructure, with rigorous monitoring to minimise disruption and financial volatility. NDPA praised Nigeria’s move toward corridor-based accountability and integrated surveillance as a step toward global best practice.
The statement also underscored the role of host-community participation in reducing sabotage, stating: “When communities see stability translating into livelihoods and development, cooperation replaces conflict. Ownership displaces alienation.”
NDPA urged policymakers to prioritise theft reduction within the broader energy reform agenda, calling it one of the few interventions capable of delivering measurable fiscal benefits within a single budget cycle. “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.
