Nigeria Lost Oil Worth $46bn To Thieving Foreign Nationals, Nigerians In 12yrs, Says NEITI
By Kelvin Alohan
Based on data from its industry reports, the Nigeria Extractive Industries Transparency Initiative (NEITI) says Nigeria has lost 619.7 million barrels of crude oil valued at $46.16billion or N16.25trillion in 12years from (2009 to 2020) to theft and sabotage.
The thieving and sabotage according to a statement by NEITI’s Head, Communications and Advocacy, Obiageli Onuorah, is perpetrated by some Nigerians in collusion with foreign nationals.
This is based on information and data provided by an average of eight companies covered by NEITI process over the years.
A breakdown of the losses shows that in 2009 when NEITI commenced reporting of crude oil theft, Nigeria lost 69.49 million barrels valued at $4.31billion. The figures for 2010, 2011 and 2012 revealed that 28.31million, 38.61million and 51.58 million barrels which were valued at $2.29billion, $4.39billion and $5.82billion were lost respectively.
The NEITI oil and gas industry reports for 2013 to 2020 also showed that the losses to crude oil theft did not abate as 78.30million barrels valued at $8.55billion was lost in 2013 alone. 2014 and 2015 witnessed combined losses of 67.29 million barrels valued at $5.57billion.
According to the NEITI reports, 2016 recorded the highest losses of 101.05 million barrels that was valued at $4.42billion. Between 2017 and 2020, the NEITI reports indicated losses of 36.46million barrel ($1.99 billion) in 2017, 53.281 ($3.837billion) in 2018, 42.248million barrels ($2.772billion) in 2019 and 53.056million barrels ($2.21billion) in 2020. The combined value of these losses is 619.7 million barrels amounting to $46.16billion over a twelve-year period.
“It was regrettable that at a time Nigeria’s economy is largely dependent on oil revenues, some Nigerians would choose to collude with foreign nationals to steal and sabotage the main sources of revenue for the federation,” the agency lamented.
It however, expressed delight over the new collaboration between Offices of the Secretary to the Government of the Federation and that of the National Security Adviser in coordinating the investigations and its wisdom to appoint NEITI in this Special Panel.
NEITI welcomed the decision of the federal government to set up a Special Investigative Panel on Oil Theft and Losses in Nigeria, describing the decision as bold, courageous and timely given the havoc oil theft has wrecked in oil production and the country’s revenue generation.
NEITI says it finds the Terms of Reference of the Panel which among others, is to establish the ramifications of crude oil theft/losses in Nigeria; ascertain the causative factors immediate and remote of crude oil theft/ losses in the country; with the widest possible amplitude, identify persons/entities whether public, private or foreign, involved in the criminal enterprise; Ascertain the illegal insertion into the Trans Escravos Pipelines (TEP) around Yokri area in Burutu Local Government Area of Delta State, comprehensive, incisive, and attainable.
Extractive 360 reports that the Panel is also tasked to establish the level of culpability of identified persons/entities in the enterprise; Examine the specific roles of Regulatory Agencies; Security Agencies Tiers/Arms of Government and International Oil Companies (IOCs) in aiding and abating the criminal enterprise; Assess the efficacy of the security architecture/arrangement in tackling crude oil theft/losses and associated petroleum products and recommend appropriate on all those culpable; and processes to be taken to eliminate the enterprise.
