By Ayomide Otitoju
Between January and July 2024, Nigeria lost an average of 437,000 barrels of crude oil daily, worth about $10 billion, due to theft, vandalism, and other criminal activities, the House of Representatives declared on Thursday.
In response, the House of Representatives Special Committee on Oil Theft and Losses has initiated investigations into the illegal lifting of crude oil in Nigeria. Concurrently, the Senate has summoned key stakeholders, including the Nigerian National Petroleum Company Limited (NNPC) and Dangote Petroleum Refinery, for interrogation.
The Senate has vowed to expose those responsible for economic sabotage and the importation of toxic fuel into the country.
The House of Representatives event, opened by Speaker Tajudeen Abbas, was attended by senior military officers representing the Chief of Defence Staff, Chief of Army Staff, Chief of Air Staff, and the Inspector-General of Police.
In his opening remarks, Abbas highlighted the severity of crude oil theft, stating, “The statistics on crude oil theft are very alarming, and its negative impact on the economy is quite monumental. For instance, between January and July 2024, Nigeria lost an average of 437,000 barrels of crude oil per day due to theft, vandalism, and other criminal activities. At the current price of oil, this translates to over $10 billion over the same period.”
He noted that the reduction in government revenue due to oil theft has forced the government to borrow to address budget deficits. Abbas emphasized the need for a concerted effort to reverse this trend, saying, “If we must make progress as a nation, renew the hope of Nigerians, and meet their yearnings, this appalling situation cannot be allowed to continue unabated.”
Abbas also identified corruption as a major factor hindering sustainable development in the oil sector and pledged the parliament’s support to anti-graft agencies in combating economic crimes. “We are determined to strengthen the Economic and Financial Crimes Commission, Nigeria Extractive Industries Transparency Initiative, and other anti-corruption agencies to frontally combat corruption in the oil and gas sector,” he assured.
Secretary to the Government of the Federation, George Akume, reiterated the Federal Government’s commitment to securing the nation’s oil and gas infrastructure. Represented by Maurice Nnamdi, Permanent Secretary of General Services, Office of the SGF, Akume said, “Since 2020, expenditure aimed at addressing crude oil theft and securing our oil infrastructure has exceeded $1.5 billion. These funds have been allocated towards enhancing surveillance capabilities, securing pipelines, and increasing the presence of law enforcement agencies in critical oil-producing areas.”
On his part, the committee chair, Ado-Doguwa, promised a thorough investigation in the interest of Nigerians. “Our ultimate aim is to employ every legislative tool to unearth the root causes and immediate factors contributing to this crime, bring those complicit to justice, and develop sustainable solutions to safeguard the integrity of our oil sector and promote national development,” he said.
Ado-Doguwa highlighted several critical issues, including undetected vessels transporting stolen crude oil, collaboration among government and security agencies in illicit activities, and the inefficiencies of current measures to combat oil theft. He stressed the importance of involving indigenous youths in ownership initiatives and converting seized refineries for legitimate use rather than destroying them.
Former Deputy Speaker Idris Wase cautioned Ado-Doguwa about the dangers of tackling oil theft. “Mr Chairman, you are involved in doing a very dangerous business. It is more than dangerous. Don’t take it lightly. It is not going to be easy for you and the committee members because you are going to face people who are sabotaging Nigeria’s economy,” he warned.
The Senate has also summoned major stakeholders in the petroleum sector for interrogation, as announced by the Senate Ad-Hoc Committee to Investigate the Alleged Economic Sabotage in the Nigerian Petroleum Industry during a press conference in Abuja.
The 15-member committee, led by Senate Leader Opeyemi Bamidele, outlined their investigation’s scope and readiness to unveil the alleged saboteurs. Key stakeholders, including the Minister of State for Petroleum Resources, NNPC, Central Bank of Nigeria, and Nigeria Ports Authority, have been summoned to appear before the committee at a public hearing scheduled for September 10 to 12, 2024.
The committee will examine the pre-shipment and pre-discharge standard test parameters adopted by the Nigerian Midstream and Downstream Regulatory Authority, compliance with the NNPC’s Direct Sale and Direct Purchase arrangements, and activities of regulatory authorities, among other issues. The Senate emphasized its commitment to conducting a thorough and holistic investigation, with no room for sacred cows.
The committee includes Senators Asuquo Ekpenyong, Abdullahi Yahaya, Mohammed Monguno, Adeola Olamilekan, Diket Plang, Harry Banigo, Khabeeb Mustapha, Adams Oshiomhole, Jonah Eteng, Adetokunbo Abiru, Osita Izunaso, Sahabi Ya’u, Alhaji Abdul Ningi, and Ifeanyi Ubah.
