In a move to revamp the economy, the National Economic Council (NEC) recently set up committees on economic affairs, crude oil theft and management. While Vice President Kashim Shettima is the chairman of NEC, the two committees are headed by Kwara State governor, AbdulRahman AbdulRasak and Governor Hope Uzodinma of Imo State. This was part of the decisions reached at the 138th National Economic Council (NEC) meeting.
A release from the Office of the Vice President indicated that setting up the committees followed “deliberations on critical economic matters and assessments of potential short-term, medium and long-term strategies for addressing pressing economic issues.”
The Economic Matters committee, to be chaired by the Kwara State governor, was tasked with preparing a clear roadmap for dealing with petroleum subsidy, including a framework for defending wage negotiations, exchange rate management and fiscal consolidation sustainability, liquidity management and inflation, medium-term investment and growth, fiscal transparency and accountability, as well as state of emergency on food production for 2024.
Members of the committee include the Gombe State Governor, epresenting North- East; Governor of Lagos (South-West); Governor of Akwa Ibom (South-South); Governor of Anambra (South East); Governor of Niger (North Central), and Governor of Kaduna (North West).
The reconstituted Crude Oil Theft and Management Committee, apart from Governor Hope Uzodimma of Imo State, has other members as the governor of Ogun State representing South West; the governor of Plateau State (North Central); the governor of Rivers (South-South) governor of Borno (North East); governor of Jigawa State (North West); the governor of Abia State (South East); Minister of Budget and Economic Planning; Minister of Finance and Coordinating Minister of the Economy; CBN Governor; GCEO of NNPCL, NDDC Chairman, and Service Chiefs.
The establishment of both committees is both timely and commendable. The crude oil theft management committee is particularly coming at an auspicious time when oil theft and pipeline vandalism are on the increase. Unfortunately, the nation is daily losing billions of naira to unscrupulous Nigerians behind the organised economic sabotage. Therefore, it has become necessary that the government must wage a relentless war against oil and pipeline vandals. The money lost to oil thieves annually can be used to fix the nation’s power sector. It can also be used to revamp the education and health sectors. Due to oil theft, it is sad that Nigeria is not meeting its OPEC quota.
Former Vice President Prof Yemi Osinbajo, had last year identified oil theft and vandalism of petroleum assets as clear and present danger to the nation’s economy and security. According to him, not only do they pose a serious threat to oil exploration and energy economy, they also impact negatively on what accrues to the federation and the business prospects on investors in the oil and gas sector.
The Group Managing Director of the NNPC Limited, Mele Kyari, had in April 2022 revealed that Nigeria lost $4 billion to oil theft at the rate of 200,000 barrels per day in 2021. In September last year, the organisation reported that the country lost 470,000 barrels of crude oil monthly amounting to $700 million to oil theft.
Similarly, the Nigeria Extractive Industries Transparency Initiative (NEITI) has put the audited figure of oil theft and losses incurred by the country between 2009 and 2020 at 619.7m barrels of crude oil valued at N16.25 trillion ($46.16billion), stressing that with such losses, curbing the twin menace of crude oil theft and pipeline vandalism has become a national emergency challenge.
The move by the Vice President and governors to curb oil theft and pipeline vandalism is in order. No doubt, crude oil is the mainstay of Nigeria’s economy.
Anything that will sabotage the production of crude oil or deny the nation oil proceeds must be vehemently resisted.
Considering the fact that oil theft has led to huge loss of revenue, environment degradation and terrorism financing, the Governor Uzodimma committee must step up measures to curtail the menace. We believe that dealing decisively with the monster will not only create an immediate impact but enhance our crude oil production quota. It will also attract foreign direct investments. There is the need to ensure that there is proper reporting of crude oil production, illegal refining, theft from well-heads and diversion from sophisticated pipelines network.
The corruption and opaqueness in the oil sector must be jettisoned forthwith. The security of oil pipelines must be strengthened for more effectiveness. The roles of agencies in the oil sector should be clearly defined to avoid needless conflicts. The Uzodimma committee should study the reports and recommendations of previous panels on the matter.
Above all, the government must go after individuals and groups involved in oil theft and pipeline vandalism. Those found culpable should be severely punished.