The recent attack on Nigeria’s Trans Niger Pipeline (TNP) has raised fresh concerns over oil security, just as the country was making progress in reviving its crude production and attracting investment into the sector.

According to Reuters, Renaissance Africa Energy, the pipeline’s new owner has rerouted crude flow through an alternative line after the main pipeline was ruptured in Tuesday’s explosion.

The alternative line passed an integrity test on Wednesday, allowing oil transportation to continue during repairs.

The TNP, with a capacity of about 450,000 barrels per day, is a critical artery for exporting Bonny Light crude, one of Nigeria’s premium oil grades.

The attack comes just days after Renaissance, a consortium of Nigerian oil firms, completed the acquisition of Shell’s local onshore assets.

The Nigerian government, which had touted recent security gains as a key factor in boosting oil production, has now imposed a state of emergency in Rivers State, where the attack occurred.

Nairametrics reported that President Bola Tinubu declared a state of emergency in Rivers State and sacked all elected officials including the governor, deputy governor, and all members of the state house of assembly.

The President cited the ongoing political crisis in the state as the basis for the attack on TNP and the consequent declaration of a state of emergency.

“This is a blow to the Tinubu government’s recent successes on oil output, gains driven in part by improved security measures,” the Director for sub-Saharan Africa at Horizon Engage, a political-risk consultancy, Clementine Wallop, told Bloomberg.

“It is also a very difficult investment signal during a period where the government seemed to be turning a corner on energy,” he added.

Renaissance rules out declaring force majeure 

Despite the attack, Renaissance has ruled out declaring force majeure—a legal provision that allows companies to suspend contractual obligations due to unforeseen circumstances.

• At least two tankers are currently waiting to load Bonny Light crude from the Bonny terminal, according to Bloomberg ship tracking data.
• The sabotage is an extreme occurrence in Nigeria’s oil sector, where pipeline vandalism and theft remain major challenges.
• Analysts say how Renaissance responds to this crisis will set the tone for indigenous operators navigating Nigeria’s complex oil environment.

“The approach Renaissance takes will be crucial in setting the tone around how the above-ground challenges in Nigeria’s oil and gas sector will be resolved by indigenous operators,” said Mansur Mohammed, head of West Africa upstream research for consultancy firm Wood Mackenzie.

The attack threatens to disrupt Nigeria’s recent oil production recovery. The country had seen a 40% increase in crude output in recent years, even surpassing its OPEC quota in January.

However, continued sabotage could erode investor confidence and hinder efforts to maximize revenue from the sector.

The Nigerian government has pledged to take stronger action to secure critical infrastructure, but with tensions still high in oil-producing regions, restoring stability remains a significant challenge.

The Federal Government has announced plans to install solar mini-grids in public institutions across Nigeria, allocating N100 billion for the project under the 2025 budget.

The initiative, which falls under the National Public Sector Solarisation Initiative, aims to reduce the cost of governance by cutting expenditure on diesel, generator purchases, and maintenance.

The Managing Director of the Rural Electrification Agency (REA), Abba Aliyu, made this known during an interview on Channels Television’s The Morning Brief on Tuesday.

He explained that once the budget is passed and signed into law by President Bola Tinubu, the REA will commence the electrification project to provide reliable, cost-effective, and climate-friendly power supply to government institutions.

Aliyu emphasized that the government has analyzed budgetary allocations for energy consumption in public institutions, noting the high expenditure on diesel and generator maintenance.

“If you also check within the budget, you’ll see a new initiative of Mr. President, which was presented by the Honourable Minister of Power, called the National Public Sector Solarisation Initiative—a new concept designed to reduce the cost of governance. A N100 billion has been allocated for it,” Aliyu stated.

He noted that significant funds are spent annually on fuel procurement and generator repairs across ministries, departments, and agencies (MDAs). “To address that, the funding is being provided for us to now solarize these institutions. That amount of expenditure in our national budget meant for diesel purchase, generator purchase, and repairs can be channeled to other relevant sectors of the Nigerian economy.” 

Dangote Petroleum Refinery & Petrochemicals has announced a reduction in the gantry price of its diesel product by N55, from N1,075 per litre to N1,020 per litre.

According to a statement signed by the Dangote Industries Head of Media Relations, Esan Sunday, the price reduction is aimed at providing relief for manufacturers and other customers.

The company noted that it had reduced the price of diesel three times since it started diesel production in January 2024.

It also reaffirmed an assertion by Economist, Prof. Ken Ife, who said that the Dangote Petroleum Refinery sacrificed over N10 billion to ensure the availability of petrol at a uniform price across the country.

The statement read: ”Since it began diesel production in January 2024, the refinery has reduced the price of diesel more than three times, from an initial N1,700 per litre to the current rate, thus providing much-needed relief to manufacturers and consumers alike.  

“The latest reduction of N55 per litre for diesel follows the revelation by Development Economist and Public Policy Analyst, Prof. Ken Ife, that the Dangote Petroleum Refinery sacrificed over N10 billion to ensure the availability of petrol at a uniform price across the country during the yuletide period. He also praised the refinery for setting a new benchmark in Nigeria’s energy sector by unlocking vast opportunities for export revenue.”