SENATE
By Iyunade Grace
The Senate of Nigeria has uncovered a staggering $300 billion revenue loss due to crude oil theft, according to an interim report by the Ad Hoc Committee on Crude Oil Theft and Sabotage in the Niger Delta. The committee, chaired by Senator Ned Nwoko, revealed that the losses were due to systemic irregularities, poor measurement standards, and weak enforcement in the oil and gas sector. A forensic review of domestic crude proceeds and tax oil returns showed differentials, mismatches, and unaccounted funds amounting to $22 billion, $81 billion, and $200 billion in different periods.
The committee’s investigation found that the Nigerian National Petroleum Company Limited (NNPCL) and other oil companies were involved in the theft, with some oil marketers diverting crude oil worth billions of dollars. The report highlighted that the Direct Sale Direct Purchase (DSDP) programme was used to divert crude oil worth $4.49 billion between January and May 2022. Additionally, Tax Oil valued at $2.51 billion recorded a 40% loss, estimated at $1 billion, while domestic crude worth $6.78 billion was lifted by 16 oil marketers, with over $3.03 billion (44.7%) diverted.
The committee has recommended strict enforcement of internationally recognized crude oil measurement standards at all production sites and export terminals. They also suggested the establishment of a Maritime Trust Fund to support maritime training, safety, and security, as well as the creation of a special court to promptly prosecute crude oil thieves and their collaborators. Furthermore, the committee advised the immediate implementation of the Host Communities Development Trust Fund under the Petroleum Industry Act (PIA) to reduce community sabotage and promote inclusion in the management of oil resources.
Senate President Godswill Akpabio described the estimated $300 billion loss as “staggering” and emphasized the need for urgent reforms and stricter oversight of Nigeria’s petroleum sector. The Senate has directed the committee to continue its investigation and submit a final report with detailed findings and actionable recommendations. Some senators, including Abdul Ningi and Solomon Adeola, have called for the committee to provide specific names of companies and individuals involved in the theft.
The Senate’s investigation highlights the need for improved transparency and accountability in Nigeria’s oil industry. With the country’s economy heavily reliant on oil revenue, the loss of such a vast amount of money is significant. The implementation of the committee’s recommendations could help prevent future theft and improve the management of oil resources in Nigeria.
