Senate uncovers $300bn revenue loss from Crude Oil theft

The Senate has received an interim report from its ad hoc committee investigating crude oil theft and related sabotage in the Niger Delta, revealing that Nigeria may have lost over $300 billion in unaccounted crude oil proceeds.

Senator Ned Nwoko, representing Delta North and chairing the committee, presented the report during plenary on Wednesday, stating that the findings point to “massive” revenue losses accumulated over the years.

According to Nwoko, the report recommends strict enforcement of internationally recognised crude oil measurement standards across production sites and export terminals.

He proposed that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) be mandated to deploy modern measuring technology or return the responsibility to the Weights and Measures Department under the Federal Ministry of Industry, Trade, and Investment.

The committee also urged the federal government to adopt surveillance technologies, including unmanned aerial vehicles, to assist security agencies in combating oil theft.

Additionally, the report recommended the creation of a maritime trust fund to improve training, safety, and security within Nigeria’s maritime sector.

“The federal government should set up a special court to promptly prosecute crude oil thieves and their collaborators,” Nwoko said.

“It should also fully implement the Host Communities Development Trust Fund under the Petroleum Industry Act (PIA) to curb sabotage.”

“All abandoned and decommissioned wells should be handed over to NUPRC, which should in turn allocate them to modular refineries to boost local production and reduce sabotage.”

Nwoko added that the committee should be empowered to “track and trace” proceeds of stolen crude oil locally and internationally, noting that forensic reviews by consultants revealed that over $22 billion, $81 billion, and $200 billion remain unaccounted for across different periods.

However, Senator Abdul Ningi (PDP, Bauchi Central) cautioned that while the committee could trace and document losses, it lacked the legal mandate to recover stolen funds.

Senator Solomon Adeola (APC, Ogun West) insisted that the consultants must provide a comprehensive list of companies and individuals implicated in the theft, stressing that the mentioned funds, if combined, amount to “nearly $300 billion.”

Similarly, Senator Ibrahim Dankwambo (PDP, Gombe North) called for detailed identification of the actors, wells, rigs, and locations involved, while Senator Enyinnaya Abaribe (APGA, Abia South) advised that the document be treated as an interim report pending further investigation.

Senator Lola Ashiru (APC, Kwara South) described the reported losses as “almost equivalent to ten years of Nigeria’s budget,” urging the committee to continue its work diligently.

Senate President Godswill Akpabio commended the committee’s progress and directed it to continue its investigation, assuring that the Senate will deliberate on the recommendations once the final report is submitted.

Join Very Nigerian WhatsApp Community
For Quick Access To News and Happenings
Around You.