Energy Expert, Nse Victor Clarifies NNPC Expenditure, Disagrees With Atiku
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In a no-holds-barred interview on Arise TV, prominent energy expert and Niger Delta activist Nse Victor Udoh has dismissed claims that the Nigerian National Petroleum Company Limited (NNPC) blew ₦17.9 trillion solely on pipeline surveillance.
Speaking during the program, Udoh, who is the convener of the Delta Progressive Alliance, insisted that the figure represents the total cost of energy security across Nigeria’s oil and gas value chain—not just security contracts in the Niger Delta.
Watch the full interview here: https://youtu.be/xZKHm9D-5pM
Udoh began by drawing a clear line between two often-confused concepts. “There’s a difference between energy security and pipeline surveillance,” he said. “Energy security is the sum total of all the expenditure in the process of getting oil and gas processed—whether for export or domestic refining and consumption."
He pointed straight to the official report that triggered the controversy. “Within that report you will also find that under-recovery—which is the balancing between the landing cost and the regulated price of selling within the country—alone took over ₦8 trillion. It is therefore misleading for anyone to claim that the whole ₦17.9 trillion was spent on pipeline surveillance."
Udoh stressed that pipeline surveillance is just **one small unit** in a much larger chain that runs from upstream exploration through midstream transportation to downstream refining and marketing. He also reminded viewers that the 2024 figure included carry-overs from previous years.
Turning to the Niger Delta, the activist—who has spent years advocating for the region—praised the pipeline surveillance model as one of the smartest “out-of-the-box” ideas ever implemented in Nigeria. He recalled how the military and Nigeria Security and Civil Defence Corps (NSCDC) struggled to protect critical infrastructure before private sector involvement was introduced.
“That thinking outside the box has resulted in large-scale inclusivity,” he said. “It has brought stability, reduced vandalism to zero in many areas, and built trust between the people and the government."
Udoh revealed that the program has created direct and indirect jobs for over 60,000 people in the region. Beyond guarding pipes, he explained, the initiative has delivered tangible development: hospitals built, health facilities upgraded, scholarships awarded, starter packs given to women, and schools supported.
“It is not just about boots on the ground,” he emphasized. “It is about putting men on the table—bringing communities, youths, and stakeholders into the ownership of our God-given resources."
On the environment, Udoh painted a picture of real recovery. “In the last one or two years, there have been no new cases of environmental degradation in several previously devastated areas. What we are seeing now is actual remediation and restoration."
He also defended the economic returns. According to the same NNPC report he referenced, the company recorded a profit of ₦5.4 trillion in the period under review—representing a 64 percent year-on-year increase. “If the profit margin is positive, then clearly the investment is yielding results,” he noted.
Addressing critics who argue that high security spending has not produced enough output, Udoh fired back with hard facts. Nigeria’s ability to hit 1.8 million barrels per day in November, he said, was not achieved by force alone but by “more men on the table”—meaning community buy-in.
That stability, according to him, has delivered three major national benefits:
• Predictable oil production that allows realistic budgeting
• Increased foreign direct investment flowing into the sector
• Stronger foreign exchange reserves and a more stable naira
“The stability in the forex we are seeing today is not rocket science,” he declared. “It is a direct result of predictable oil output, improved balance of trade, and the confidence that investors now have in Nigeria."
Udoh also spoke on the shift from reactive policing to prevention. At a recent stakeholders’ meeting in Bayelsa, he revealed, security agencies reported three straight months without any pipeline tampering incidents. “Pipeline surveillance is delivering a preventive approach to crime,” he said. “Prevention is always better than prosecution."
He made it clear he was not defending NNPC but simply stating verifiable facts. “The armed forces have their constitutional role; the police and civil defense have theirs. But when communities are carried along and people feel a sense of belonging, the need for heavy boots on the ground reduces dramatically."
In his closing remarks, Udoh urged Nigerians to recognise what has worked. “Every nation has its unique approach to its peculiar challenges. Pipeline surveillance in the Niger Delta has worked. The indices are there for everyone to see – even for those who never believed in it.”
The activist’s position has already sparked fresh debate online, with many commending his detailed breakdown while others continue to question the opacity of NNPC’s spending.
Video credit: Arise News
