| dc.description.abstract | The ongoing dependence on road transport for PMS distribution has resulted in inefficiencies,
such as frequent fuel shortages, wastage of resources, loss of lives, and elevated transportation
costs. To mitigate these issues and establish a more dependable and cost-effective PMS supply
chain, it is imperative to revitalize and expand the current pipeline infrastructure, that aligns
with the policy thrust of the Petroleum Industry Act (PIA).
The main goals of this project are twofold: firstly, to accelerate the deregulation of the
downstream by outsourcing the (or privatizing)to rejuvenate the current pipeline network by
upgrading and refurbishing outdated infrastructure to enhance operational efficiency and safety;
and secondly, to expand private sector participation in the pipeline network to link key
production sites with major consumption hubs. This expansion aims to decrease dependence
on road transport, which is prone to inefficiencies and disruptions, thereby improving the
overall capacity for PMS transportation.
The outsourcing of Revitalizing and expanding the pipeline network will reduce transportation
time and costs, stabilize fuel prices, and improve safety by minimizing road transport risks,
without overbearing expenditure on the government. It will also support economic growth
through opening up private sector participation in the development of energy infrastructure in
the country, thereby ensuring a more efficient PMS distribution system, while offering an
environmentally friendly alternative, reducing carbon emissions and environmental impact.
Considering the impact of the inefficiency on the day-to-day downstream distribution of
petroleum products activities in Nigeria and its impact on the economy of Nigeria, the following
recommendations are suggested for consideration:
i. The National Assembly through its committee on the downstream petroleum
sector may wish to consider accelerating the upgrading downstream energy
infrastructure that is consistent with the increasing private sector delivery in the
midstream, by outsourcing (or privatizing) the Pipeline Integrity Management
(PIM) System for assessing pipeline condition, implementing preventive
maintenance, and addressing corrosion issues.
ii. The National Assembly through its committee on downstream petroleum sector
may wish to consider extending pipeline networks to meet growing energy demand
through partnerships to ensure a reliable supply putting in mind the importance of
incorporating environmentally friendly approaches during revitalization and
extension, including minimizing waste and emissions. | en_US |
