Return Of The Niger Delta Militants Attacks Causing Nigeria $2.4 mln Gas, Power Loss Daily

Jan 21 Attacks on pipelines in Nigeria over the weekend have cost Africa’s biggest economy around 470 million naira ($2.4 million) each day in lost gas and electricity, the government said on Thursday.

The attacks in the southern oil-producing Niger Delta region followed years of relative calm in that part of Africa’s biggest crude producer after a 2009 amnesty halted a spate of attacks on oil installations and kidnappings of expatriate workers.

On Wednesday, the state oil company said it had closed two of its four refineries due to crude supply problems following the attacks.

The Ministry of Power, Works and Housing issued a statement saying the pipeline vandals caused losses in gas sales and, as a result of the impact on gas-fired power stations, electricity shortages.

Reuters reports that the sabotaged pipeline, which contributes to the Escravos Lagos Pipeline System, has led to a loss of 160 million standard cubic feet per day (mmscfd) of gas, which ministry spokesman Hakeem Bello said equated to a daily cost of about $400,000.

“This is in addition to losses to be incurred daily from affected power generation (392 million naira; $2 million). The total daily loss to the country is therefore estimated at 470,479,931 naira,” Bello said in the statement.

“The pipelines are being actively monitored for further attacks or other unforeseen impacts,” he added. ($1 = 199.0000 naira).