From January to 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.
This alarming revelation led the House of Representatives to launch an investigation into the illegal lifting of crude oil in the country. The Senate has also summoned key stakeholders, including the Nigerian National Petroleum Company Limited (NNPC) and Dangote Petroleum Refinery, to address these issues.
House of Representatives Investigation
The House of Representatives Special Committee on Oil Theft and Losses began its inquiry into the theft and losses of crude oil. The event, declared open by Speaker Tajudeen Abbas, was attended by high-ranking defense and police officials. The committee, chaired by Alhassan Ado-Doguwa, aims to identify the causes of oil theft and recommend solutions.
Speaker Abbas, represented by Deputy Speaker Benjamin Kalu, expressed concern over the negative impact of oil theft on the nation’s economy. He highlighted the significant financial losses and other problems associated with these criminal activities. “The statistics on crude oil theft are very alarming and its negative impact on the economy is quite monumental,” Abbas said. “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.”
Abbas emphasized the need for collective efforts to reverse this trend and address the issue of corruption in the oil sector. “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,” he added. “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.”
Secretary to the Government of the Federation, George Akume, reiterated the Federal Government’s commitment to securing the nation’s oil infrastructure. Represented by Maurice Nnamdi, Akume noted that over $1.5 billion has been spent in the past four years to combat oil theft and secure pipelines. “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,” Akume said.
Ado-Doguwa promised a thorough investigation and assured Nigerians that the committee would bring those responsible for oil theft to justice. “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 stated.
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Senate Summons NNPC and Dangote
The Senate also announced its investigation into the alleged economic sabotage in the petroleum industry. The Senate Ad-Hoc Committee to Investigate the Alleged Economic Sabotage in the Nigerian Petroleum Industry, led by Senator Opeyemi Bamidele, has summoned key stakeholders, including the NNPC, Dangote Group, and other major entities in the oil sector, for a public hearing scheduled for September 10 to 12, 2024.
Senator Bamidele emphasized the importance of the investigation, stating, “The rationale for this news conference is pure and simple. It mainly borders on the alleged economic sabotage in the petroleum industry, including the recent accusations and counter-accusations of the importation of petroleum products into the country.”
The Senate’s investigation will examine various aspects of the oil sector, including the compliance of the NNPC’s Direct Sale and Direct Purchase arrangements with the Petroleum Industry Act and the activities of the Nigerian Midstream and Downstream Petroleum Regulatory Authority. The committee also plans to scrutinize the state of the 22 depots built by the defunct NNPC to eliminate road distribution of petroleum products.
“We will engage with stakeholders within the oil and gas industry to identify gaps in regulating and strengthening surveillance and monitoring structures to detect violations of best practice standards in the importation of products before they enter the domestic supply chains,” Bamidele said.
The Senate committee members vowed to conduct a thorough investigation and ensure accountability in the oil sector. “We will not allow business as usual,” they declared, emphasizing that there would be no room for sacred cows and that arrest warrants would be issued for any heads of agencies who refuse to honor their invitations.
Conclusion
The investigations by the House of Representatives and the Senate underscore the seriousness of the oil theft crisis in Nigeria. Both legislative bodies are committed to uncovering the root causes of these issues and ensuring that those responsible are held accountable. The outcomes of these investigations are expected to bring significant changes to the Nigerian oil sector, enhancing its transparency and security.