Nigeria’s oil production remains under pressure despite the resumption of the Trans-Niger Pipeline, which was temporarily shut down following an explosion and fire.
The pipeline, responsible for transporting 450,000 barrels of crude oil per day, resumed operations after repairs were completed, but ongoing instability in Rivers State continues to pose a threat to the country’s energy sector.
The explosion, which occurred on March 17, 2025, caused significant damage to the infrastructure, disrupting oil exports and raising concerns about the security of Nigeria’s critical energy assets. A senior oil executive who pleaded anonymity confirmed that while operations have restarted, the situation remains volatile.
Rivers State Crisis Threatens Oil Stability
The crisis in Rivers State escalated on Tuesday after President Bola Tinubu declared a state of emergency, suspending Governor Siminalayi Fubara, Deputy Governor Ngozi Oduand, and all state lawmakers for an initial period of six months.
The move follows rising violence, including pipeline attacks, linked to political unrest in the region.
In a national broadcast, Tinubu cited the destruction of petroleum pipelines as one of the key reasons for his decision. He appointed retired Vice Admiral Ibokette Ibas as the state’s administrator, tasking him with restoring order and protecting critical infrastructure.
Despite these measures, security concerns persist. Industry sources warn that the continued political turmoil could lead to further disruptions in oil production, threatening Nigeria’s ability to meet its OPEC production quota and economic targets.
Another Explosion Raises Fresh Concerns
Barely a day after the pipeline resumed operations, another explosion was reported at a manifold in the Omwawriwa axis of Ogba-Egbema-Ndoni Local Government Area.
The incident, which occurred deep inside the forest, sent thick smoke and flames into the sky.
The facility is linked to key oil firms, including Seplat, Agip, and Shell, and supplies crude to various regions, including parts of Imo State and Bayelsa State.
Authorities have yet to confirm the cause of the explosion, but security forces have arrested two individuals in connection with the previous blast at the Bodo community.
The Rivers State Police Command has launched an investigation to determine whether the attacks were acts of sabotage.
Impact on Nigeria’s Economy
The disruption comes at a time when Nigeria is struggling to ramp up oil production to meet its budget target of over 2 million barrels per day.
Recent data from OPEC and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows that crude oil production fell to 1.671 million barrels per day in February, failing to meet OPEC’s 1.5 million bpd quota.
The shutdown of the Trans-Niger Pipeline has further strained government revenues, which depend heavily on crude oil exports.
The federal government aims to generate N19.60 trillion in oil revenue, banking on stable production levels and prices above $75 per barrel. Continued instability could derail these projections and weaken economic recovery efforts.
Looking Ahead
The resumption of the Trans-Niger Pipeline is a temporary relief for Nigeria’s oil sector, but security risks remain high. As political tensions escalate and fresh attacks emerge, the industry faces an uncertain future.
With global energy markets closely watching developments, Nigeria must address security concerns to stabilize oil production and protect its economic interests.
