A petroleum economist and energy consultant, Lucky Ighoyota, has dismissed claims that pipeline surveillance contracts in the Niger Delta are monopolised, insisting that the system already involves multiple operators and has improved Nigeria’s oil production and security.
Speaking in an interview with ARISE News on Friday, Ighoyota argued that critics calling for further decentralisation of the contracts misunderstand the structure of the current arrangement.
According to him, monopoly implies control by a single entity, which he said does not reflect the reality of Nigeria’s oil pipeline surveillance framework.
“Monopoly in itself, from my elementary economics, is a one-man show. The crude oil asset synchronisation arrangement we have today is not a one-man show,” Ighoyota said.
The debate follows calls by some stakeholders in the Niger Delta for the decentralisation of pipeline surveillance contracts, with critics arguing that a few operators dominate the sector and that the current system has not significantly curbed oil theft.
However, Ighoyota defended the existing framework, explaining that the contracts were introduced to tackle rampant oil theft, environmental degradation and pipeline vandalism in the region.
He noted that the arrangement was designed to strengthen Nigeria’s energy security while supporting the country’s broader energy objectives.
“When we talk about energy security, we must remember the energy trilemma — reliable supply, energy equity in terms of access and affordability, and environmental sustainability,” he said.
“It is in pursuit of this balance that Nigeria introduced these contracts to ramp up production.”
The energy consultant also pointed to improvements in Nigeria’s oil output as evidence that the surveillance scheme is working.
According to him, Nigeria’s production had previously fluctuated between about 800,000 and 1.1 million barrels per day due to oil theft and pipeline vandalism.
He said the country is now gradually improving production levels and targeting higher output.
“Today we are working towards producing 1.4 to 1.5 million barrels per day and even projecting higher figures in our national budget,” he said.
Ighoyota added that the progress in the sector contributed to what he described as a revival in Nigeria’s oil and gas industry.
“In 2025, we recorded a revival year in the oil and gas industry. That shows that the measures being implemented are yielding results,” he said.
Ighoyota criticised groups mobilising along ethnic lines to demand pipeline surveillance contracts, warning that such agitation could destabilise the region.
He said the oil and gas sector requires competence and technological advancement rather than competition for surveillance contracts.
“Nigeria is an oil-producing nation without the capacity to design a drilling bit, a drilling rig or even a Christmas tree,” he said.
“Nobody is thinking about how to improve our technological know-how or how to advance our own solutions to get the oil out of the ground.”
He argued that the oil and gas industry offers opportunities far beyond pipeline surveillance contracts.
“The oil landscape has a huge value chain beyond this pipeline security contract, but people are focused only on this aspect,” he said.
Responding to criticism over the competence of existing contractors, Ighoyota maintained that the companies involved have demonstrated capacity.
He said the surveillance contracts have created jobs and helped reduce criminal activities in the Niger Delta.
“These companies have shown capacity and competence,” he said.
“They have employed tens of thousands of indigenous people from the region, helping to demilitarise communities where illegal oil activities were prevalent.”
Ighoyota also credited the initiative with keeping youths productively engaged and reducing violent clashes in parts of the Niger Delta.
“If this surveillance programme had not kept many youths busy, some communities would likely have been embroiled in violence by now,” he said.
Highlighting improvements in operational safety, Ighoyota cited remarks by the managing director of Chevron Nigeria, who reportedly said the company recorded zero infractions at its facilities for the first time.
He said such outcomes demonstrate the effectiveness of the pipeline surveillance system.
“What else do you need to prove that the scheme is working?” he asked.
Ighoyota concluded that rather than destabilising the system, stakeholders should focus on strengthening Nigeria’s oil industry and maximising opportunities across the sector’s value chain.
Boluwatife Enome
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