Oil marketers in Nigeria are calling on the Nigerian National Petroleum Company Limited (NNPCL) to speed up repairs on 21 fuel depots across the country. This comes as the NNPCL has resumed operations at the Port Harcourt and Warri refineries.
According to marketers, revamping these depots is critical to maximising the benefits of having functional refineries. They also emphasised that operational depots would cut costs, improve fuel distribution, and reduce reliance on private facilities.
The Current Situation
Many of the depots, managed by NNPCL’s Pipelines and Product Marketing Company (PPMC), have been inactive for years due to vandalism and outdated infrastructure. This has forced NNPCL to rely on private depots, increasing costs significantly.
In 2023, NNPCL spent ₦434.65 billion on pipeline maintenance and private depot charges. This included ₦44.27 billion paid to private depot owners for handling petroleum products.
Impact of Functional Depots
Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), highlighted the benefits of functional depots. He noted that using pipelines to transport fuel is cheaper, safer, and more efficient than road tankers, which contribute to accidents and vehicle wear and tear.
“With pipelines feeding depots like those in Aba, Enugu, or Jos, fuel can reach more locations quickly and at lower costs,” Ukadike explained. He urged the NNPCL to prioritise repairs and secure pipelines against vandalism.
Challenges and Expert Views
The depots, located in cities like Maiduguri, Kano, and Lagos, remain largely non-functional. Vandalism and theft have worsened the problem, with some pipelines losing significant amounts of fuel before reaching their destinations.
Experts, including Professor Wumi Iledare, stressed the need for private sector involvement to fund pipeline repairs. He suggested burying pipelines to prevent vandalism and encouraging community participation to safeguard infrastructure.
What’s Next?
The NNPCL has stated that it is working to rehabilitate 5,120km of pipelines, a process currently in its early stages. Marketers and industry experts remain hopeful that these efforts will lead to a more efficient fuel distribution system, ultimately lowering costs for Nigerians.
By fixing these depots, NNPCL could reduce dependence on private facilities, improve logistics, and create a more sustainable downstream sector.