Reps Bemoan Of $10bn Loss From Oil Theft In 6 Months

House of Representatives has lamented the very alarming statistics on crude oil theft and its negative impact on the economy which was quite monumental.

Speaker Abbas Tajudeen gave this indication at the commencement of the investigation into illegal lifting of crude oil in Nigeria by the House Special Committee on Oil Theft and Losses in Abuja on Thursday.
Abbas expressed worry that 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 which at the current price of oil translated to over $10 billion over the same period.

Represented by his deputy, Hon. Benjamin Kalu, the speaker reiterated the negative impact oil theft was having on the nation’s economy and bemoaned the daily losses of crude due to the activities of criminals.

He said:“The statistics on crude oil theft are very alarming, and its negative impact on the economy is quite monumental. For instance, it is estimated that 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 $10bn over the same period.

“Apart from reduced government revenue to address the multi-faceted challenges of national development, other problems associated with crude oil theft include environmental degradation, heightened insecurity in the form of piracy, kidnapping, militancy and vandalism and the shut-down of production by many companies, among others.

“The reduction in government revenue has invariably been responsible for government borrowing to address budget deficits over the years.

“We are determined to strengthen the Economic and Financial Crimes Commission, the Nigeria Extractive Industries Transparency Initiative and other anti-corruption agencies to frontally combat corruption in the oil and gas sector,” he assured.

In his presentation, Secretary to the Government of the Federation, Sen. George Akume restated the commitment of the federal government to secure the country’s oil and gas infrastructure, disclosing that in the past four years, over $1.5bn has been spent in this regard.
Represented by the permanent secretary, General Services, Office of the SGF, Maurice Nnamdi, Akume said the government has invested considerable resources in combating this menace.

“Since 2020, expenditure aimed at addressing crude oil theft and securing our oil infrastructure has exceeded $1.5bn. These funds have been allocated towards enhancing surveillance capabilities, securing pipelines, and increasing the presence of law enforcement agencies in critical oil-producing areas.”

Earlier, the committee’s chairman, Ado-Doguwa assured that the panel will live up to its mandate of Ado-Doguwa investigated oil theft in all ramifications, focusing on the actions of criminal gangs, militia groups, local communities, companies and security agencies.

He said: “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 that will safeguard the integrity of our oil sector and promote national development.

“To ensure a thorough investigation, our methodology includes inviting memoranda and presentations from key stakeholders within the oil industry and security sector and engaging in further discussions with international and local oil companies, host community leaders, and relevant agencies.

“Our committee has noted several critical issues, including vessels transporting stolen crude oil undetected, collaboration among government and security agencies in illicit activities and the inefficiencies of current measures to combat oil theft.

“We have identified that firepower and other weapons of engagement are inadequate compared to the number of security operatives drafted to combat armed crude oil thieves. The NNPC Ltd. has reported 900 infractions on its pipelines, and delayed judicial processes have resulted in the abandonment of cases, allowing culprits to return to their criminal activities.”

In his intervention, the immediate past Deputy Speaker, Idris Wase urged Ado-Doguwa to brace up for what will come his way, noting that the oil thieves will come after him.

“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.

“In other climes, these people are supposed to be on the gallows and face the death penalty. They will go after you; they will come after your life but God will shield you. He will protect you,” he noted.