Nigeria has lost $300 billion to oil theft, according to a Senate committee investigating oil theft losses.
The Senate ad hoc committee investigating persistent crude oil theft in the Niger Delta has revealed that a forensic audit conducted by independent consultants showed that suspected oil thieves stole more than $300 billion worth of oil, which would have been Nigeria’s proceeds from crude oil sales.
The committee’s chairperson, Mr Ned Nwoko, disclosed this while presenting an interim report of the committee during Wednesday’s plenary.
Oil theft and pipeline vandalism related to it have plagued Nigeria for decades, in recent years, interfering with plans to reverse a decline in production. The country’s oil output has been lower than 1.8 million barrels in the last decade.
Mr Nwoko, the senator representing Delta North Senatorial District, said the findings were based on a forensic review conducted by consultants engaged by the committee.
He explained that the stolen funds were traced to both local and international transactions.
“The ad hoc committee should be given the mandate to track, trace, and recover all proceeds of stolen crude oil both locally and internationally, as forensic review by the consultant shows over $22 billion, $81 billion, and $200 billion remains unaccounted,” he said.
However, the senator did not disclose the identity of the consultants, the period covered by the forensic report, the identities of the suspected perpetrators and the companies allegedly involved.
Mr Nwoko only noted that the report was interim, suggesting that more findings would be made public in the committee’s final submission.
The committee recommended that the federal government establish a special court dedicated to prosecuting oil-related offences and offenders appropriately.
It also urged the government to implement the Host Communities Development Trust Fund under the Petroleum Industry Act (PIA) to reduce sabotage in oil-producing regions.
“The federal government should set up a special court to promptly prosecute crude oil thieves properly and their collaborators. The federal government should immediately implement the host communities development trust fund under the Petroleum Industry Act, PIA, to reduce sabotage.
“All abandoned and decommissioned wells should be completely ceded to NUPRC, who should, in turn, hand such wells to modular refineries to reduce sabotage and increase crude availability for local consumption,” the senator said while reading the committee’s recommendation.
Responding, the Senate President, Mr Godswill Akpabio, commended the committee’s efforts and assured that the Senate will consider the recommendations after the final report is presented.
Mr Akpabio, thereafter, directed the committee to continue its investigation and present a comprehensive final report as soon as possible.