Nigeria’s oil boom threatened by 50-year-old problem, says NURPC’s Eyesan

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Nigeria’s renewed push to reclaim its position as one of Africa’s leading oil producers is facing an unexpected obstacle—not insecurity or crude oil theft, but an ageing infrastructure network that threatens to undermine years of regulatory reforms and investment efforts. According to the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Oritsemeyiwa Eyesan, reopening thousands of dormant oil wells will achieve little if the pipelines transporting crude to export terminals remain too old and unreliable to handle increased production.

Eyesan explained that much of Nigeria’s oil infrastructure has been in operation for more than 50 years, with years of neglected maintenance leaving pipelines and facilities vulnerable to breakdowns. While oil theft and militant attacks have long dominated discussions about Nigeria’s production challenges, she believes the real issue has been chronic underinvestment caused by funding shortfalls, delayed maintenance, and years of unpaid financial obligations in joint venture operations. These setbacks gradually weakened production capacity even during periods of relative peace in the Niger Delta.

The NUPRC believes recent reforms under the Petroleum Industry Act (PIA) have created a stronger foundation for recovery. With the Nigerian National Petroleum Company (NNPC) now operating commercially, regulators expect increased private investment, faster project approvals, and renewed confidence from both local and international investors. The commission also expects recently completed acquisitions by indigenous operators, alongside improved security and host-community development initiatives, to accelerate production growth in the coming years.

To achieve the federal government’s target of producing between two and three million barrels of crude oil per day, the commission is focusing on restoring shut-in wells, expanding brownfield developments, supporting marginal field operators, and encouraging new deepwater investments. However, officials admit that none of these projects can deliver lasting results unless the ageing pipeline network is repaired and modernized. Without reliable transportation infrastructure, additional oil production could simply remain stranded underground despite billions of dollars in new investments.

Although Nigeria’s oil sector appears to be entering a new phase of recovery, experts say the country’s success will ultimately depend on whether it can overcome decades of neglected infrastructure. Eyesan maintains that regulatory reforms, fresh investments, and stronger industry collaboration have created real momentum, but the nation’s credibility with global investors and even OPEC will depend on proving it can consistently move crude oil from its fields to international markets. Until that happens, ageing pipelines may remain the biggest barrier to Nigeria’s long-awaited oil resurgence.

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