Mohammed Shosanya
Nigeria lost an average of 437,000 barrels of crude oil per day due to theft, vandalism, and other criminal activities between January and July this year,the Speaker, House of Representative, Tajudeen Abbas, has said.
He disclosed that this translates to a loss of over $10 billion at the current exchange rate during this period.
He spoke on Thursday while declaring open House of Representatives Special Committee on Oil Theft and Losses investigation into illegal lifting of crude oil in Nigeria.
Abass,who was represented at the event by the Deputy Speaker, Benjamin Kalu, expressed deep concern over the detrimental impact of oil theft on Nigeria’s economy,and lamented the significant daily losses of crude oil caused by criminal activities.
According to him,crude oil theft not only reduces government revenue, which is essential for addressing the multifaceted challenges of national development, but it also causes significant environmental degradation.
“Additionally, it exacerbates insecurity through increased incidents of piracy, kidnapping, militancy, and vandalism. Many companies have been forced to shut down production as a result, further compounding the problem.
“The reduction in government revenue has invariably led to increased borrowing to address budget deficits over the years,” the Speaker stated.
He advocated the need for a concerted effort to reverse this trend, emphasizing, “If we are to make progress as a nation, renew the hope of Nigerians, and meet their yearnings, this appalling situation cannot continue unabated.”
He identified corruption as a major obstacle to sustainable development in the oil sector and affirmed the parliament’s commitment to supporting anti-graft agencies in eradicating economic crimes within the industry.
“We are resolute in our determination to empower the Economic and Financial Crimes Commission (EFCC), the Nigeria Extractive Industries Transparency Initiative (NEITI), and other anti-corruption bodies to tackle corruption in the oil and gas sector head-on,” he assured.
The Special Committee, chaired by Alhassan Ado-Doguwa, the representative for Doguwa/Tudun Wada Federal Constituency in Kano State, has been tasked with a comprehensive investigation into oil theft.
The committee will focus on examining the roles and actions of various stakeholders, including criminal gangs, militia groups, local communities, companies, and security agencies
Also speaking at the event, George Akume, the Secretary to the Government of the Federation, reaffirmed the Federal Government’s dedication to safeguarding the nation’s oil and gas infrastructure. He highlighted that over the past four years, more than $1.5 billion has been invested to enhance security in this crucial sector.
Represented by the Permanent Secretary, General Services, Office of the SGF, Maurice Nnamdi, Mr Akume said, “The government has invested considerable resources in combating this menace.
“Since 2020, expenditure aimed at addressing crude oil theft and securing our oil infrastructure has exceeded $1.5bn. These funds have been allocated towards enhancing surveillance capabilities, securing pipelines, and increasing the presence of law enforcement agencies in critical oil-producing areas.”
Speaking,Ado-Doguwa promised on behalf of the committee to do a good job in the interest of Nigerians.
He said: “Our ultimate aim is to employ every legislative tool to unearth the root causes and immediate factors contributing to this crime, bring those complicit to justice and develop sustainable solutions that will safeguard the integrity of our oil sector and promote national development.
“To ensure a thorough investigation, our methodology includes inviting memoranda and presentations from key stakeholders within the oil industry and security sector and engaging in further discussions with international and local oil companies, host community leaders, and relevant agencies.”
He highlighted some challenges to be addressed saying, “Our committee has noted several critical issues, including vessels transporting stolen crude oil undetected, collaboration among government and security agencies in illicit activities and the inefficiencies of current measures to combat oil theft.
“We have identified that firepower and other weapons of engagement are inadequate compared to the number of security operatives drafted to combat armed crude oil thieves. The NNPC Ltd. has reported 900 infractions on its pipelines, and delayed judicial processes have resulted in the abandonment of cases, allowing culprits to return to their criminal activities.
“In light of these findings, our committee has resolved to enact adequate legislation, including budget allocations to support security agencies, improve existing laws to combat crude oil theft and collaborate with security agencies to prioritise the protection of national assets and critical infrastructure.
“We also emphasise the importance of involving Indigenous youths in ownership initiatives and converting seized refineries for legitimate use rather than destroying them.
Meanwhile,the immediate past Deputy Speaker, Idris Wase has urged Ado-Doguwa to brace up for what will come his way, noting that the oil thieves will come after him.
In his remarks at the event,Wase reminded the Kano lawmaker that his job is a dangerous one.
“Mr. Chairman, you are engaged in a highly challenging and perilous task. This responsibility is far from easy and demands the utmost seriousness. You and your committee members will confront individuals who are actively undermining Nigeria’s economy. Approach this with the gravity it deserves.”
“In other countries, individuals like these would face the death penalty and be held accountable for their actions. They might seek to harm you, but I pray that God will protect you and keep you safe.”
