October 10, (THEWILL) – The Nigerian Senate has initiated a probe into the increasing incidence of crude oil theft in the Niger Delta region.
While lamenting the incessant and nefarious activities of the oil thieves, the Senate directed five standing committees to investigate the actions of security forces, militia groups, the local populace, oil company employees, and anyone suspected of using sophisticated methods to pilfer from oil facilities within the country.
The committees saddled with the work include the Committee on Petroleum Resources (Upstream, Downstream and Gas), Committee on Host Communities, and Committee on Niger Delta.
The resolution followed a motion sponsored by Ned Nwoko, Senator representing Delta North, and co-sponsored by Ede Omueya, Senator representing Delta Central, and Joel Thomas, Senator representing Delta South.
In his lead debate, Nwoko observed that oil theft is pervasive in the country due to a collaboration between security forces, militia groups, the local population, and employees of oil companies.
According to Nwoko, Nigeria suffered a daily loss of approximately 437,000 barrels of crude oil, amounting to a value of $23 million in 2022, due to criminal activities. Between March 2023, Nigeria incurred a substantial loss of 65.7 million barrels of crude oil, valued at $83 per barrel, resulting in a staggering revenue loss of N2.3 trillion as a result of oil theft.
“Concerned that there have been accusations and counter-accusations of oil bunkering and various other crimes between the military and local militia groups. These allegations underscore the significant level of sabotage and disruption to the nation’s economic backbone,” he said, adding that the activities of oil thieves and their collaborators have hampered crude oil production, posing a substantial threat to the nation’s economy.
He said the National Bureau of Statistics (NBS) reported that the oil sector contributed 6.33 per cent of the nation’s GDP, which translated to 45.6 billion dollars in 2022.
”This figure marks an improvement from the 1.49 million barrels per day recorded in the same quarter of 2022 and is notably higher than the production volume of 1.34 million barrels per day in the fourth quarter of 2022.
“Also observes that it has come to attention that oil theft in Nigeria thrives due to a troubling collaboration between security forces, militia groups, the local population, and certain employees within oil companies.
“These parties employ sophisticated methods to carry out theft from all facilities located within the country given Nigeria’s vast oil and gas reserves,” he said.
Senate President, Godswill Akpabio, expressed concern over crude oil theft in the country and assured the Senate would do everything possible to tackle the problem, including tinkering with the regulatory act if necessary.
“Even if we need to tinker with the regulatory Act, anything we can do to bring this to an end,” he said.
On his part, Adams Oshiomohle, Senator representing Edo North, alleged that military officers are complicit in the oil theft.
He urged the committees to invite service chiefs for a holistic investigative process.
“We can’t have big vessels and oil is carted away, who has been arrested? 500,000 barrels stolen per day, it is an organized theft. It is shameful that so much is stolen, and the armed forces cannot defend the tertiary, no excuse can be given for this,” he said.
The committees have been given a six-week deadline to conclude their investigation.
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