•Says 300,000 barrels of crude oil lost to criminal activities daily
From Ndubuisi Orji, Abuja
House of Representatives has said it will raise the target for all revenue generating Ministries, Departments and Agencies (MDAs), as a means of bridging budget deficits.
The speaker, Abbas Tajudeen, who stated this, on Wednesday, while inaugurating the House Special Ad-hoc Committee on Crude oil theft, said the country losses an estimate of 300, 000 barrel of crude oil daily to theft, vandalism and other criminal activities.
Abbas decried the dwindling of government revenue, stating that the country is reported to incur losses of oil revenues estimated at N1.29 trillion annually due to industrial-scale theft. Consequently, he noted that the main objective of the panel is to determine the immediate and remote causes of oil theft and recommend measures to curb the menace to the House.
The speaker explained that the setting up of the special ad-hoc committee underscores the commitment of the House to protect the country’s resources, for the benefit of all citizens and punish economic saboteurs.
He said, “I charge you, therefore, to investigate all dimensions of oil theft, focusing on the actions of all actors, including criminal gangs, militia groups, the local populace, company employees and security agencies. The findings and recommendations from your work will serve as a foundation for sustainable solutions; rather than ad-hoc measures. I also expect your efforts to contribute significantly to enhancing the integrity of our oil sector and promoting sustainable development.”
“Nigeria is facing significant financial challenges due to a combination of rising expenditures and falling revenues. You may recall that the proposed revenue and expenditure for 2023 stand at N9.73 trillion and N20.51 trillion, respectively. This means a fiscal deficit of N10.78 trillion, which is about 4.78% of the GDP. This deficit is the largest in Nigeria’s history, and with a budget more than double the proposed revenue, we are faced with the challenge of borrowing to cover the gap.”
“It is for this reason that the House will significantly raise the targets for all government revenue-generating agencies. I am convinced these agencies can generate much more than they currently do. In our recent engagement with MDAs on the 2024-2026 MTEF, we have made it clear that a lot more will be required of our key revenue-generating agencies in 2024. We expect them to double their total annual revenue profile. However, to achieve this, these agencies must reduce wastage and improve efficiency, especially in collection.
“In addition to this, revenue-generating agencies must ensure transparency in the management of generated revenues. Let me state clearly that the House will not tolerate low performance by agencies or failure to show evidence of required remittances to the Federation Account. We shall also closely monitor and undertake strict oversight of the activities of all revenue-generating agencies to ensure compliance.”
The chairman of the panel, Alhassan Ado-Doguwa, in his speech, said despite the contribution of the oil and gas sector to the national economy, the country is yet to get optimum benefits from the sector, owing to oil theft and losses through pipeline vandalism amongst others.
Ado-Doguwa said “Oil theft is large scale illegal business estimated to be worth $133 billion per year globally. This makes it the world’s biggest theft of a natural resource and is also considered to be the number one most smuggled natural resource globally. From the 2021 NEITI report, It is estimated that between 2019 – 2021 Nigeria lost 643 million barrels of crude amounting to $48 billion as a result of theft.
“A recent report by a presidential investigative panel affirms the apparent micro-economic impact of crude oil theft. The report states that with oil theft and illegal bunkering taking as much as 200,000 to 400,000 barrels per day of the country’s oil production at the onset of these illegalities to now more than 800,000 barrels per day, the country’s fiscal stability is therefore threatened. The report further painted a frightening scenario where losses to oil thieves and official leakages could overtake official receipts of all oil revenues into the Nigerian treasury.”
He recalled that “a recent report by the Group Chief Executive Officer of NNPC Limited, Mallam Kyari stating that the company has not been able to pump oil through the pipeline from Warri to Benin in the last 22 years and also that the over 5,000km of oil pipelines in the country are not functional as a result of pipeline vandalism. “
The lawmaker promised that the panel will engage with relevant stakeholders and “together we will begin to rollback the evil effects of the criminal enterprise of oil theft and pipeline vandalism.”