A section of the Trans-Niger Pipeline, one of Nigeria’s biggest pipelines, has exploded, media reported on Tuesday.
The pipeline is crucial for oil transportation in the Niger Delta, one of the country’s biggest sources of oil. It carries over 450,000 barrels’ worth of oil per day, mostly to the Bonny Terminal in the federal state of Rivers.
Although the cause of the explosion is unknown at this time, local media suggested it could be related to threats by militant groups to damage oil production facilities.
Nigeria’s Arise TV channel said that the Shell-operated pipeline has frequently been the target of attacks by militants and saboteurs, which has resulted in significant revenue losses.
It also reported on concerns being raised by locals over the possible economic and ecological fallout from the explosion.
What do we know about Nigeria’s oil industry?
Nigeria is one of the largest oil producers in the world, ranking in the top five.
Since its discovery in the mid-1900s, Nigeria’s economy has been primarily sustained by the oil industry. Oil accounts for nearly 6% of GDP output and over 90% of all export value.
But the wealth generated by the industry is hardly visible and its distribution is highly unequal.
It was not immediately clear how the explosion of the Trans-Niger Pipeline would impact the industry.
In the last few years, regional leaders have demanded increased shares of oil revenue from the federal government. The value of the substance is so great that militant groups have in the past threatened to disrupt oil production until their demands are met.
Nigerian consumers currently face petroleum shortages, despite being in one of the world’s most oil-rich countries, as most refined oil is exported.
Last week, the government banned large fuel trucks after a spate of tanker explosions have caused hundreds of deaths in recent months.
