In a bold move to end oil theft and loss of revenue, President Bola Tinubu last week ordered all heads of security forces and intelligence agencies to go after those stealing crude oil in the Niger Delta region. The President gave the order after a meeting with the Service Chiefs and heads of other security agencies. After the parley, the Group Managing Director of the Nigerian National Petroleum Company Ltd (NNPCL), Mele Kyari, told newsmen that the President was disturbed over the continued loss of revenue through oil theft despite all efforts to address it.
In his maiden official meeting after his inauguration last year, the President instructed the Service Chiefs, led by the then Chief of Defence Staff, Gen. Lucky Irabor, and other heads of security agencies to crush the perpetrators of oil theft. “Under my watch, oil theft and insecurity will not bring Nigeria to its knees while other countries record achievements in key sectors of their economies,” the President vowed. He also tasked the security chiefs to provide a “purpose-made security nationwide.”
From then till now, it is apparent that nothing has really changed. The security chiefs are yet to crush the oil thieves, pipeline vandals or defeat those fueling the general insecurity. Nigeria has lost so much revenue to oil thieves. Even ex-President, Muhammadu Buhari ordered the Service Chiefs to deal ruthlessly with the oil thieves, pipeline vandals and other security threats. Yet, not much was achieved.
President Tinubu’s new order came after the Executive Secretary of Nigeria Extractive Industries Initiative (NEITI), Dr. Orji Ogbonnaya Orji, raised the alarm that the country lost about 619.7 million barrels of petroleum products per day in nine years, valued at $46.16billion or N16.25trillion from Nigeria’s major refineries as a result of oil theft. This is indeed the time to end oil theft and subsequent loss of revenue. The economic sabotage must not be allowed to continue. The Service Chiefs and heads of other security agencies must work in concert to crush the monster of oil theft now. Therefore, there should be no room for excuses any longer. Ending oil theft means more revenues to the government. No doubt, oil theft has become the most lucrative illicit business in Nigeria.
What Nigeria loses annually from oil theft might be higher than the official figures. According to available estimates, Nigeria loses about 400,000 barrels of oil per day or $12.26billion annually. According to the Nigeria National Resource Charter (NNRC), Nigeria lost N4.75 trillion to oil theft from 2015-2018. Within the same period, N60 billion was spent to repair vandalised oil pipelines in the Niger Delta. Also, between 2019 and 2020, a total of 1,161 pipeline points nationwide were vandalised.
Globally, Nigeria is ranked number one nation on oil theft index, with Mexico at a distant second. México records 10,000 barrels of oil production theft per day. Without addressing the oil theft challenge, Nigeria may not meet its oil production quota of 2 million bpd. Not achieving the target will stall the lofty economic recovery plans. However, it is heartwarming that the government has approved the $21 million contract to check oil theft and the metering of 187 oil flow stations in the Niger Delta region.
The Minister of State, Petroleum Resources, Heineken Lokpobiri, said the metering will ensure effective monitoring of crude oil production and distribution. The metering of the oil flow station, an initiative of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), will enthrone the culture of accountability and transparency in the corruption-ridden sector. It is also in line with the government’s agenda to decisively deal with oil theft and pipeline vandalism across the country. The opaque nature of the oil sector has made it increasingly difficult to know the quantity of crude oil Nigeria produces in a day. We hope the metering project will be completed as scheduled. According to NEITI, Nigeria is the only oil-producing country without metering. It is shameful and embarrassing.
Between 2012 and 2015, Nigeria lost $9.89billion worth of crude oil due largely to absence of metering. The amount represents about 10 per cent of Nigeria’s total debt of $91.6billion or N121.2trillion. Beyond crushing the oil thieves, the security agencies should be bold enough to fish out some security agents alleged to be complicit in oil theft and illegal oil bunkering. We enjoin the Service Chiefs to muster the will to end oil theft and pipeline vandalism forthwith. Crushing the oil thieves and apprehending the big men behind them will ensure that Nigeria meets its oil production quota. Anything less, will be counter-productive and unacceptable.