Speaker of the House of Representatives, Hon. Abbas Tajudeen has said that the country has so far this year lost about $10 billion in revenue to crude oil theft, vandalism and other forms of sabotage in the oil and gas sector.
Speaking at the commencement of an investigative hearing on crude oil theft and revenue losses, Abbas said it was practically impossible for the Government to meet its daily obligations to the people with such huge revenue loss.
This is even more compelling in view of the commitment of President Bola Ahmed Tinubu to increase oil production to 2.6 million barrels per day (bpd) by 2027 and 4 million bpd by 2030.
The Speaker said, “The statistics on crude oil theft is 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 bpd due to theft, vandalism and other criminal activities. At the current price of oil, this translates to over $10 billion 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. Unfortunately, this has astronomically raised the debt burden of the country while also denying the country the optimal capacity for growth and development.
The Speaker said that those sabotaging the oil sector were known and would be unmasked by the House through the investigation, regretting that those saddled with the responsibility of managing the affairs of the nation has resorted to self-service and have decided to serve themselves.
According to him, the investigation underscore the commitment of the House to protect the nation’s resources for the good of all citizens, and deal decisively with the perpetrators of oil theft, vandalism and other criminalities in the oil and gas sector.
Abbas further said Nigeria depends largely on oil for its national revenue, adding that while the present administration is doing everything possible to diversify the economy and ensure significant revenue generation in the non-oil sectors of the economy, it is not relenting in the effort to rid the oil and gas sector of corruption and all forms of criminality.
Secretary to the Government of the Federation (SGF), George Akume, on his part, said the Government was spending not less than $1.5 billion on pipeline surveillance with a view to preventing crude oil theft leading to huge revenue loss.
Akume said available records from the Nigeria Extractive Industries Transparency Initiative (NEITI) revealed that about $46 billion worth of crude was stolen between 2009 and 2020.
The Defence Headquarters has also said it was galvanising the support of host communities and other stakeholders in the oil sector to ensure seamless crude exploration and exploitation in the Niger region.
Director of Defence Media, Operations, Maj-Gen Edward Buba, at the press briefing at the Defence Headquarters yesterday in Abuja, said troops were also reinforcing surveillance efforts on vessels, terminals and oil infrastructures to include jackets that house well heads, as part of efforts to ensure crude oil production in the oil-rich region.
The Speaker, who was represented by his Deputy, Hon. Benjamin Kalu, expressed concerns about growing corruption in the oil and gas sector.
The SGF, who was represented by the Permanent Secretary, General Services, Maurice Nnamdi Mbaeri, said that the country has consistently failed to meet its production quota set by OPEC, which has not only affected its revenue, but hampers the provision of social services that Nigerians rely on.
Akume further said even though the country is blessed with abundant natural resources, particularly crude oil, it has faced persistent challenges in harnessing these resources for the collective prosperity of our people. He described oil theft as a malignant scourge that has continues to undermine nation’s national economy, compromise security, and erode the trust of both local and international stakeholders.
The SGF said the government has invested considerable resources in combating this menace. He said since 2020, expenditure aimed at addressing crude oil theft and securing our oil infrastructure has exceeded $1.5 billion USD which has been allocated towards enhancing surveillance capabilities, securing pipelines, and increasing the presence of law enforcement agencies in critical oil-producing areas.
According to him, the investigative hearing marks a pivotal step in our concerted efforts to confront this issue head-on, adding that it is a demonstration of Government’s unwavering commitment to transparency, accountability, and the rule of law.
He disclosed that the Government was implementing a multi-faceted approach that encompasses robust legislation, enhanced security measures, and community engagement, which will expectedly strengthen our legal framework to ensure that those who engage in oil theft and related offenses face the full weight of the law.
