Nigeria Loses $400bn To Oil Theft

Former President of Trade Union Congress of Nigeria (tuc), Comrade Peter Esele (right), handing over to his successor, Comrade Bobboi Bala-Kaagama in Abuja, recently.
Photo: NAN

House of Representatives disclosed on Wednesday that an estimated $5 billion (N780 billion) is lost yearly to oil theft in Nigeria.

This means that the country has lost a whopping $400 billion to the menace since independence.

But the problem became worse between 2011 and 2012, while the trend for 2013 is even more alarming the years since the present administration came to power at the centre, the House added.

Chairman of the House ad-hoc Committee on Crude Oil Theft, Bashir Adamu, disclosed these at the inauguration of the committee in Abuja.

He, however, assured that the committee was poised to get to the root of the problem and come out with foolproof proposals on how to stop the crime.

Speaker of the House, Aminu Tambuwal, corroborating the position of Adamu, said while inaugurating the committee that the impunity in the sector must be stopped as it is affecting the resources of the country.

He added that evidences have shown that big guns in the society are actually behind the theft and charged the committee to unmask them.

Adamu, in his speech, noted that, “The level of oil theft is alarming and of grave concern to stakeholders”.

“The oil and gas industry accounts for about two-thirds of government revenue and more than 90 per cent of export earnings in Nigeria.

“Illegal bunkering has caused Nigeria to lose an estimated $5 billion (N780 billion) yearly, amounting to $400 billion since Nigeria’s independence.

“Statistics show that a total of 350,000 barrels per day was lost to illegal bunkering in 2012, representing an increase of 45 per cent over the figure of 20 11, and 67 per cent over that of 20 1 0, while the trend for 2013 is even more alarming.

“Unless the government summons the will to fight the menace, the situation will further worsen the country’s economic woes.

“The rising level of crude oil theft and pipeline vandalism particularly in the Niger Delta region has reached and assumed higher dimensions.

“The ugly development has made operators in the Nigeria’s oil and gas industry one of the most expensive in the world.

“Attacks on production facilities have led to several shut -downs and declaration of force majeure by the international oil companies (IOCs), ultimately resulting in loss of revenue to the government.

“In April 2013, oil giant, Shell Petroleum Development Company, shut down the 150,000bpd Nembe Creek oil pipeline due to the urgent need to clear away illegal connections.

“The grave phenomenon of oil theft and its global support system has continued to remain a clog in the wheel of this nation’s high economic growth trajectory.