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Nigeria’s biggest oil pipeline restarts amid Rivers’ crisis - BUSINESSDAY

MARCH 19, 2025

 


…Tinubu declares state of emergency

…Another explosion recorded in Brass pipeline

 

Nigeria’s largest oil pipeline, the Trans-Niger Pipeline, has resumed operations after a temporary shutdown caused by a recent explosion and fire.

The restart comes amid escalating tensions and a deepening crisis in Rivers State, where the pipeline is located, raising concerns about the stability of the country’s oil production and its broader economic implications.

The Trans-Niger Pipeline, which transports approximately 450,000 barrels of crude oil per day, was temporarily shut down following an explosion on March 17, 2025.

The incident, which caused significant damage to the infrastructure, disrupted oil exports and heightened fears about the security of Nigeria’s critical energy assets.

A senior oil executive who pleaded anonymity confirmed that repairs have been completed and operations have resumed, but the situation remains fragile due to an ongoing unrest in Rivers State.

“The threat to oil production is still there despite resumption of Trans-Niger pipeline,” he said.

On Tuesday, President Bola Tinubu Tuesday declared a state of emergency in Rivers State, suspending Governor Siminalayi Fubara, Deputy Governor Ngozi Oduand and all elected lawmakers of the state House of Assembly for an initial period of six months.

Read also: Bode George condemns Tinubu’s state of emergency in Rivers

Tinubu, who issued the declaration in a national broadcast Tuesday night, appointed Ibokette Ibas, a retired vice admiral, as administrator “to take charge of the affairs of the state in the interest of the good people of Rivers State.”


Tinubu said the ongoing crisis has been a major source of concern to him, especially as all his efforts to resolve it have not yielded any result.

“For the avoidance of doubt, this declaration does not affect the judicial arm of Rivers State, which shall continue to function in accordance with their constitutional mandate,” the president said.

Tinubu cited as the basis for his action ‘the disturbing’ violence in the state in the last 24 hours, including explosions and vandalisation of petroleum pipelines linked to the political crises in the state.

The president announced the decision in a televised address on Tuesday, citing the prolonged political crisis in the oil-rich state and the failure of both the executive and legislative arms to resolve their differences. Tinubu also appointed retired Vice Admiral Ibokette Ibas as the state’s administrator to oversee its affairs during the emergency period.

It comes a day after the 26 lawmakers in the state served a notice of gross misconduct on Governor Siminalayi Fubara, kickstarting the process of removing him from office.

The state has seen increased turmoil since the notice signed by 26 members of the 32-member House of Assembly, who are loyal to Nyesom Wike, a former governor of the state and current minister of the Federal Capital Territory (FCT) in Tinubu’s cabinet, was served on the governor on Monday.

The development signals intensifying political battle between Wike and Governor Fubara.

Another explosion

On Tuesday, BusinessDay confirmed another explosion occurred at a pipeline manifold in the Omwawriwa axis of Ogba-Egbema-Ndoni Local Government Area of Rivers State .

The latest incident reportedly occurred at a manifold connecting a federal pipeline deep inside the forest.


Sources said the blast occurred at a manifold connecting federal line in Okwawriwa, sending flames and thick smoke into the sky. The facility, which transports petroleum products from Seplat, Agip, and Shell, supplies ONELGA, parts of Imo State, and Brass in Bayelsa State.

While the explosion was yet to be officially confirmed as at press time on Tuesday, community sources said they saw massive flames and thick smoke rising from an oil installation in the forest.

On Tuesday, police authorities in Rivers arrested two persons over the explosion that rocked the Bodo community. The explosion, which ripped through the mangrove, happened on Monday night but was put out.

However, Grace Iringe-Iroko, spokesperson of the Rivers State Police Command, said some persons have been taken in for questioning over the incident.


“The Rivers State Police Command has commenced a thorough investigation to determine the cause of the fire. In connection with this, two individuals have been taken in for questioning as part of efforts to uncover any potential act of sabotage,” the police spokesperson said in a statement issued on Tuesday.

According to her, security operatives during a night patrol observed the incident, which happened at the border of Kpor and Bodo communities, and alerted the Shell Petroleum Development Company (SPDC) which operates the pipeline.

“The latter initiated necessary safety protocols, including shutting down the affected pipeline,” Iringe-Iroko said.

“As a result of swift intervention, the situation is now under control, and there is no further threat to residents or the environment.”

Abubakar Momoh, minister of regional affairs, had earlier said details of the incident were sketchy but investigations were ongoing over the explosion.


“Up till this moment, we have not been able to get clear details as to what caused that very explosion but investigations are going on,” the minister said on Channels Television’s Lunchtime Politics on Tuesday.

Renaissance to investigate explosion

Meanwhile, Tony Okonedo, spokesperson of Nigerian oil consortium Renaissance Group, confirmed on Tuesday a blast on the group’s Trans Niger oil pipeline in the coastal River State, noting that it has dispatched a team to investigate.

The consortium, which includes Nigerian exploration and production companies Aradel Energy, First E & P, Waltersmith, and ND Western, along with the international energy group Petroline, now operates Shell’s former onshore subsidiary in Nigeria.

“Renaissance is responding to reports of an incident in its eastern operations. Part of that response is a regulator-led joint investigation visit,” Okonedo said.


Impact on budget

The disruption comes at a critical time for Nigeria, which has been striving to ramp up oil production to meet its Organisation of Petroleum Exporting Countries (OPEC) quota and boost revenue amid economic challenges.

Data obtained from both OPEC and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) indicated that in February, Nigeria was neither able to meet its OPEC quota of 1.5 million barrels per day (bpd), nor did it move closer to hitting its crude output forecast of over 2 million bpd in this year’s budget.

In February, the country’s output reduced to 1.671 million bpd.

The NUPRC data on Nigeria’s crude oil production saw oil and condensate output falling from 1.73 million bpd in January, a major blow to the successful implementation of this year’s budget.


OPEC, in its Monthly Oil Market Report (MOMR), indicated that the country’s crude oil production declined from 1.54 million bpd in January to 1.47 million bpd in February – about 4.81 per cent reduction.

But secondary sources, mainly OPEC consultants, said crude oil production in the West African country rose to 1.56 million bpd in February from 1.53 million bpd in January, indicating a 1.96 percent increase.

The temporary shutdown of the Trans-Niger Pipeline is expected to impact oil exports, potentially leading to revenue losses and further straining the nation’s economy.

This will negatively impact the federal government’s dreams of raising N19.60 trillion or 56 percent of its revenues from the oil sector.

The government is eyeing an oil price above $75 per barrel and a production of at least 2.06 million barrels per day (bpd).


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