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Oil Theft: NEITI Calls For Review Of Legislation
The Nigerian Extractive Industry Transparent Initiative, NEITI, yesterday, called for a review of legislation and use of sophisticated technology in the oil and gas sector to reduce vandalism of pipelines, crude oil theft and illegal refining of crude.
This was part of the recommendations presented by the Executive Secretary, NEITI, Wazir Adio, in a document called, ‘The Inaugural NEITI Policy Dialogue with the theme, ‘Stemming Oil Theft in Nigeria’.
According to Adio crude oil theft happens in three ways. First, through vandalism and sabotage- when that happens crude oil is pilled and lost. Once that happens you have to short in production, and on the account of that it leads to secondly, Differed Production and this is different from loss when you are thinking of the first instance. The third part is outright theft.
He further disclosed that between 2014 and 2016, NNPC lone spent N363 billion for repairs and maintenance and that was on the average per year and that is about $400 million, and that also impacts the environment including livelihoods.
He also said an estimated range 150,000 bpd to 400, 000 being daily production is lost every day, which according to him between January and June of 2019, 22 million barrels of oil were lost and that in monetary value is $1.35 billion and that is five per cent of the 2019 budget, which put together is higher than the total allocation for health, education, defense, and Agric.
He added that the issue has been lingering for some time and goes beyond 2019 and that the total losses for 10 years (2009-2018) are $41.94 billion, and this is just the least and there is the possibility of much than this.
He said: “The current legislation to punish culprits is outdated, which if convicted the fine ranges between N100 to N5000, even the ones with jail terms have option of fine, but there is one that carries death penalty on refined products and not on crude. Stakeholders should do more on legislations, security, surveillance, community engagements, and diplomatic outreach.
“Yes a lot has been done but the problem still remains and that means look at the approach taken so far and see whether this is enough.
“The scale of infrastructure is amazing makes it difficult for police. An active market for stolen crude oil and we have to think about how to tackle it. We have to look at the legislation. The cost of those who perpetrate the act is low and they are bent on carrying out the crime.
“We must leverage on technology and deploy it including fingerprinting, molecular markers, revamp security architecture, specialized force, and communities need to be served, and allow incentives to communities by equity, and also involve the global community and make them understand it is not a Nigerian problem, which we need to have a global coalition.
Meanwhile, the Governor of Edo State, Godwin Obaseki, who was Guest of Honour at the occasion, urged the federal government to consider leasing of pipelines and also transparent surveillance contracts.
“The federal government should reconsider leasing these lines for a short while because we understand what is going on from the current owners and working with them, put in place security arrangements and infrastructural development plan for these lines because these lines are quite old and need to be replaced. Haven take over these lines we should now have proper transparent surveillance contracts”, Obaseki said.
However, he said the issue of crude oil theft is not a problem that can be eliminated in a hurry but must be tackled, hence the task is a collective responsibility.
He also urged governors in the Niger Delta region to properly utilize the 13 per cent derivation from the federal government to develop their states and give the people a sense of belonging.
The Minister of State, Petroleum, Timipre Sylva, represented by his Special Adviser, Felix Nabena, said in a goodwill message, said that “It is in the light of the above we welcome and identify with NEITI policy dialogue on combating crude oil theft in Nigeria.
The recent NEITI study and report on crude oil theft between 2009 and 2018 reveal a whooping sum of $41.9 billion worth of crude may have been stolen in the past 10 years.
“This calls for serious concern. Consequently, we must continue to review current efforts, law, solutions and some of them contained in the NIETI report. I, therefore, charge all stakeholders to reflect over this challenge persistently before us, the NEITI report and its recommendations.
Also in a goodwill message, the Group Managing Director, Nigerian National Petroleum Corporation, NNPC, Mele Kolo Kyari, represented by the Chief Operating Officer, Upstream, Roland Ewubare, disclosed that the Corporation has bear the brunt of crude oil theft, recording between 2001 and 2019 half-year a total of 45, 347 pipeline breaks on its downstream pipeline network.
“Sadly, today crude oil theft has become a major threat and that threat actually affects our economy in terms of our ability to meet our revenue projections and scale.
“NNPC as a player on the downstream side has felt the direct brunt of many attacks on our facilities and assets. Between 2001 and 2019 half year we recorded a total of 45, 347 pipeline breaks on our downstream pipeline network. It comes with an average of seven incidents on a daily basis.
“There is also environmental degradation caused by theft and pipeline vandalism and the environmental impact witnessed in communities is directly linked with this”, Ewubare said.
The Hausa Community in Rivers State has dissociated itself from media reports credited to one MaiwadaAdamu that the Arewa Community in Rivers State has appointed Alhaji Musa Saidu as the acting SarkinHausawa, PortHarcourt, following the inability of the former SarkinHausawa, Alhaji Isa Madaki to carry out his functions.
MaidawaAdamu, who is also the spokesman of the Arewa Initiative for Peaceful Co-existence, had briefed journalists on the change, but in a swift reaction, the Office of Alhaji Isa Madaki, has come out to say that the only recognised body which has the powers to appoint the SarkinHausawa, PortHarcourt is the Council of SarkinHausawa in PortHarcourt headed by Alhaji Isa Madaki.
The statement also said Alhaji Hussani Isa Madaki is the only recognisedSarkinHausawa, Port Harcourt, adding that his appointment follows the proclamation and endorsement by the council members of SarkinHausawa, Port Harcourt, Rivers State.
The statement further called on the general public and all authorities concerned to give Alhaji Hussani Isa Madaki maximum co-operation and support,as he discharges his duties as SarkinHausawa, Port Harcourt.
The Suspended Rivers State Commissioner for health, Dr Adaeze Chidinma Oreh, has described as baseless allegations in some quarters that she was responsible for the purported disruption of the Nigerian First Lady’s empowerment program in Port Harcourt.
Dr Oreh, who said this in a statement personally signed by her and a copy made available to newsmen in Port Harcourt also described the allegation as a product of the sick imagination of rumour mongers
According to Dr Oreh, “they are nothing more than a feeble and mischievous attempt to tarnish my reputation and sow discord”
In her words,”the allegations levelled against me, Dr. Adaeze Oreh, regarding the supposed disruption of the First Lady’s empowerment programme on Friday 2nd May, 2025, are entirely unfounded, completely false, and a product of the sick imagination of rumour mongers and conflict entrepreneurs.
“They are nothing more than a feeble and mischievous attempt to tarnish my reputation and sow discord.”
The suspended commissioner challenged those behind the allegation, especially the Concerned Rivers Youth Organisation to show proof of its assertion adding “It is essential to base criticisms on facts rather than speculation or puerile political agendas.
“I challenge the “Concerned Rivers Youth Organisation” (assuming such a body really exists) to provide tangible proof to support their assertions.
“It is essential to base criticisms on facts rather than speculation or puerile political agendas.
“I have neither sponsored nor will sponsor any activities aimed at embarrassing or disrupting the activities of the administration appointed by His Excellency President Bola Ahmed Tinubu GCFR to oversee the affairs of Rivers State following his declaration of a state of emergency on Tuesday, 18th March, 2025, and have rather spent the time of my suspension from office focused on other endeavours and my doctoral studies.
“I reaffirm my commitment to working tirelessly for the progress and development of Rivers State.
“Furthermore, I believe that it is crucial for all stakeholders to promote a culture of truth, integrity, and respect in public discourse.
“Unsubstantiated wild claims undermine trust and hinder constructive engagement, and this is not what the state needs at this difficult and delicate time.
“I urge everyone to focus on issues that unite us and foster a positive, solution-driven dialogue for the betterment of our State, and urge everyone to work together to build a brighter future for Rivers State, grounded in truth, transparency, and collective effort,”she said.
By: John Bibor
The Hydrocarbon Pollution Remediation Project (HYPREP) has called on key regulators, asset owners and other stakeholders to continue to support the agency toward the goal of remediating the Ogoni environment and restoring the livelihoods of the people and building structures for peace.
The Project Coordinator of HYPREP, Prof Nenibarini Zabbey, who made the call during the Project’s first quarter meeting with regulators, asset owners and stakeholders in Port Harcourt, urged the stakeholders to remain resolute in supporting HYPREP’s work.
“We particularly expect each regulatory agency and asset owner to deepen their involvement and continue to provide strategic support to the project”, he said, stressing that the quarterly meeting platform remains instrumental in providing a structural avenue for regulators, asset owners, and implementation partners to offer feedback to HYPREP on project performance and deliberate on ideas that move the project forward, as well as strengthen collaboration, deepen synergy and reinforce collective responsibility.
Zabbey disclosed that the socio-economic study of Ogoni has started, as HYPREP has contacted the International Agency for Research on Cancer of the World Health Organisation(WHO) to commence in the next quarter a three-year human health biomonitoring in Ogoniland.
He noted that work on several fronts of the cleanup project is progressing steadily, adding that as key project partners, the insights and shared experience of the regulators and asset owners have always enriched HYPREP’s operations.
He said the policy thrust of HYPREP for 2025 is clear, as the Project is intensifying efforts to complete within stated timelines, the various ongoing projects, including remediation works and mangrove restoration, potable water facilities, the Centre of Excellence for Environmental Restoration, the Ogoni Power Project, Ogoni Specialist Hospital, and Buan Cottage Hospital, among others.
Zabbey, however, announced that HYPREP would commence new set of shoreline cleanup, mangrove restoration and livelihood projects, to sustain the momentum of implementing the Ogoni cleanup, adding that the agency would also conduct detailed site characterisation of the high-risk complex sites, leading to remediation works at the sites.
He noted that HYPREP’s collaboration with Rivers State Ministries of Health, Power and Environment, and civil society organisations remains vital, stressing that the technical and administrative support of all relevant government agencies and funding partners is indispensable in helping HYPREP overcome operational bottlenecks, especially those encountered in interfacing with host communities.
He further indicated that “the people of Ogoni and the nation are looking to us with hope and expectation, and expect tangible results from the remediation initiative”, assuring the participants that the Project Coordination Office is committed to delivering positive results.
“We must, therefore, continue to work with diligence, transparency, and a renewed sense of purpose”, he declared, saying, “ the completion and commissioning of projects this year must reflect not only our technical ability but also our collective commitment to environmental sustainability and sustainable development in Ogoni.”
During the interactive session, the Project Coordinator briefed the participants on the progress made so far by HYPREP to conclude the distribution of starter packs to the 5,000 Ogoni trainees, and called on contractors who had already collected huge chunk of money for the project, to deliver without further delay.
In all, the regulators, asset owners and stakeholders commended HYPREP for the good works it is doing, and urged it to do more.
The National Oil Spill Detection and Response Agency(NOSDRA) was represented at the event by Deputy Director, Oil Field Assessment, Dr Abam Komommo Omini, while Dr Vincent Nwachukwu, Director of Medical Services, represented the Rivers State Ministry of Health.
The Rivers State Ministries of Water Resources, Power and Environment were represented by Dr Bealo Brownson; Engr K. J. Osele; and Mr James Ordu respectively, while the Society for Women and Youth Affairs (SWAYA); and the Stakeholder Democracy Network(SDN); among other civil society organisations were also at the event.
By: Donatus Ebi