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Nigeria loses $226bn revenue following oil suspension in Ogoniland

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From Tony John, Port Harcourt


Nigeria has lost an estimated $226.734 billion in revenue from the suspension of crude oil production across 96 wells in Ogoniland over the past 32 years.

This was revealed by Pipeline Infrastructure Nigeria Limited (PINL), which stated that the time to act is now. Speaking at its monthly stakeholders’ meeting in Port Harcourt, Rivers State, on Wednesday, PINL described the resumption of oil operations in the region as a strategic national priority.

General Manager, Community and Stakeholder Relations at PINL, Dr Akpos Mezeh, disclosed this at the meeting, stressing that the process must be anchored on community participation, environmental sustainability, and transparency. The firm noted that Ogoniland, covered under Oil Mining Lease (OML) 11, holds the potential to produce over 500,000 barrels of crude oil per day.

The General Manager said operations were halted in 1993 following widespread unrest and environmental concerns linked to decades of exploration activities, stating that the scale of accumulated losses demands urgent attention.

“Available data shows that over $226.734 billion has been lost due to the suspension of crude oil production from 96 oil wells in Ogoniland over the past 32 years. This clearly underscores both the economic cost of inaction and the immense opportunity that lies ahead,” he said.

PINL outlined four conditions it considers essential to a successful resumption: “Host communities must be involved as critical stakeholders across all phases of the process; environmental clean-up and restoration efforts already underway must be sustained; a community-based security framework — drawing on PINL’s pipeline surveillance model across the Niger Delta — should be adopted; and economic inclusion must be prioritised, with residents benefiting directly through employment, contracts, and capacity development.”

Mezeh said the company’s stance reflects wider sentiment across the region.

“The position of PINL aligns with growing calls from stakeholders in the Niger Delta for the Federal Government to restart oil production in Ogoniland in a manner that balances economic benefits with environmental justice and community interests,” he said.

The company affirmed its readiness to contribute directly to the effort. “At PINL, we stand ready to support this process by applying our experience in stakeholder engagement and infrastructure protection to ensure a peaceful, secure, and sustainable resumption.”

According to the company, any successful resumption will depend on rebuilding trust among stakeholders, resolving environmental grievances, and ensuring host communities have a central role in decision-making. PINL maintained that, with the right approach, restarting production in Ogoniland could significantly boost Nigeria’s output, increase national revenue, and contribute to broader economic growth.

 



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