The Senate Committee investigating repeated sabotage of oil installations, and crude oil theft in the Niger Delta,has identified systemic irregularities, poor measurement standards and weak enforcement in the oil and gas sector resulting in unaccounted crude oil sales as reasons Nigeria recorded huge loss in $300 billion revenue between 2015 and now
Presenting its interim report, the chairman of the committee, Senator Ned Munir Nwoko (APC-Delta) ,said the submissions stem from oral accounte made by stakeholders, documents, records and findings from the general public.
According to him, the 40-page interim report recommends several measures to tackle crude oil theft, strengthen accountability, and recover lost revenues, adding that the committee, after extensive assessment, suggested that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) should strictly enforce internationally accepted crude oil measurement standards at all production sites and export terminals.
The report implored the Federal Government to equip security agencies with modern surveillance technology.
It said:”Including unmanned aerial vehicles (UAVs) to combat oil theft as well as to establish a Maritime Trust Fund to enhance maritime infrastructure and safety”.
It also recommended the establishment of special courts to prosecute crude oil thieves, full implementation of the Host Communities Development Trust Fund under the Petroleum Industry Act (PIA).
It said:”And the handover of abandoned wells to the NUPRC for proper management and utilisation”.
According to the report, other recommendations include the strict implementation and enforcement of internationally acceptable crude oil measurement standards at all production sites and export terminals or the restoration of the Weights and Measures Departments of the Federal Ministry of Industry, Trade and Investment to the upstream sector.
It also recommended that this should be followed with empowering the Weights and Measures Departments to acquire and use state of the art measuring equipment at all production sites and export terminals.
It explaineed this would promote and strengthen accurate measurement, transparency and accountability in the oil and gas industry.
The committee also advocated that it be empowered to “track, trace, and recover” all stolen crude oil and its proceeds, locally and internationally — a recommendation that immediately sparked debate among lawmakers.
PDP Bauchi Senator, Abdul Ningi described the report as comprehensive and commendable.He ,however, said that the committee’s mandate should not include direct recovery of stolen funds.
“We can track and trace, but recovery is beyond the powers of the Senate. The committee should specify losses, locations, and report back for referral to agencies such as the EFCC or ICPC,” he added.
He noted that consultant reports cited in the document revealed crude oil revenue shortfalls of $81 billion between 2016 and 2017, in addition to $200 billion in unaccounted proceeds from 2015 to date.
Chairman Senate Committee on Appropriations, Sen. Solomon Adeola supported Ningi’s position, stressing the recovery process must be handled by the executive arm.
He added:“The committee should provide more details — names of companies, figures, and locations — before any further steps are taken.
“It is not the role of the Senate to recover funds; that lies with appropriate agencies.”
Senator Ibrahim Dankwambo (APC-Gombe), also called for a more comprehensive final report.
This is to identify all those involved in the theft, the specific wells and rigs affected and quantities of crude lost through illegal bunkering and pipeline leakages.
He said:“The title of the report includes ‘the actors,’ so we must know who they are. It is a complex web involving companies, individuals, and illegal refineries. We need well-by-well and rig-by-rig data.”
Urging patience, Senator Enyinnaya Abaribe (APGA-Abia), emphasized that since the report was interim, the Senate should only receive it and await the final submission.
President of the Senate, Godswill Akpabio commended Sen. Nwoko and his team for the thorough and courageous work, adding that the Senate could not directly recover stolen funds.
“Our duty is to track and trace. Recovery is a separate mandate handled by government agencies. Nonetheless, we encourage the committee to continue its work and present a final, comprehensive report,” Akpabio said.
He lamented the $300 billion in crude oil losses, saying it underscores the need for urgent reforms and stricter oversight of Nigeria’s petroleum sector.