Reps probe alleged $4bn crude oil theft

In order to prevent further economic loss to the nation and make sure that those responsible are held accountable, the House of Representatives decided yesterday to look into a $4 billion worth of crude oil theft.

The House passed the resolution after Philip Agbese’s motion on the “Need to Investigate Crude Oil Theft and Loss of Revenue Accrued from the Oil and Gas Sector in Nigeria” was approved.

Agbese claimed that in recent times, the media had been overflowing with reports of the loss of trillions of naira due to crude oil theft and the loss of revenue from the country’s oil and gas exploration.

According to reports, roughly 40% of crude oil losses result from measurement errors, theft, and poor metering facility maintenance, which makes hydrocarbon accounting opaque.

He claimed that according to reports, Nigeria lost $4 billion to oil theft in 2021 alone, at a rate of 200,000 barrels per day, and that the figures had since increased.

He claims that the majority of the Niger Delta’s oil theft is made possible by security agencies, who are both said to be complicit and largely to blame.

Agbese emphasized further that the military had previously been charged with being responsible for 99 percent of oil theft, and he questioned why the federal government had not taken any action to stop the wrongdoing.

According to a 2022 report by the Nigerian Extractive Industry Transparency Initiative (NEITI), 619.7 million barrels of crude oil worth $46.1 billion were stolen in the previous 12 years. Stakeholders have frequently referred to the country’s crude oil theft as an organized crime committed by the elite.

“Nigeria’s security and intelligence agencies have received enormous funding, but despite this, they have performed appallingly when it comes to reducing oil theft.

The Nigerian Upstream Petroleum Regulatory Commission, or NUPRC, and NNPC Ltd. are accused of actively conspiring with domestic and international oil and gas companies to sabotage efforts to ensure the efficient operation of metering facilities at well heads, flow stations, and loading platforms, despite having access to enormous resources.

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“If crude oil theft is allowed to continue unchecked, it will not only have catastrophic effects on the nation’s economy, but it will also have a serious negative impact on the environment, health, and social life of the host communities,” he said.

The motion was referred to an ad hoc committee that has not yet been formed, with instructions to report back to the House within four weeks.