Senator Heineken Lokpobiri, the Minister of State Petroleum Resources (Oil), has called on the United Arab Emirates (UAE) to invest in Nigeria’s deteriorating oil and gas pipeline infrastructure, some of which date back over 60 years. This appeal was made during a meeting with the UAE ambassador to Nigeria, Salem Al Shamsi, and his team at the minister’s office in Abuja yesterday.
Lokpobiri emphasized the lucrative nature of the oil business, assuring the UAE of favorable returns on their investment. “The oil business remains one of the most lucrative in the world,” he stated, highlighting the potential benefits for UAE investors.
Nigeria currently has over 5,000 kilometers of aging oil pipeline infrastructure that are rarely used due to their poor condition. The deteriorating pipelines have not only become inefficient but have also caused environmental damage, including oil spills. While other countries utilize pipelines to transport crude oil and petroleum products, Nigeria relies heavily on tankers, which increases transportation costs and impacts road conditions.
The unreliable state of the pipelines has forced upstream operators to use barges as an alternative. Lokpobiri pointed out that investment in pipeline infrastructure would alleviate these issues and enhance the efficiency of oil transport within the country.
As significant members of the Organisation of Petroleum Exporting Countries (OPEC), Nigeria and the UAE share common interests in the oil sector. Lokpobiri expressed optimism that collaboration between the two nations could yield substantial benefits, not only for Nigeria’s oil and gas industry but also for UAE investors.
The meeting underscored the strategic importance of modernizing Nigeria’s oil and gas infrastructure to sustain and boost the sector’s productivity, with potential UAE investment seen as a vital step towards achieving this goal.
