Fresh revelations from the Senate ad hoc committee investigating crude oil theft in the Niger Delta have sparked outrage after the panel reported that about ₦300 billion in domestic crude proceeds and over $200 billion in global crude oil sales are unaccounted for.
Naijaonpoint reports that in its interim report submitted to the Senate, the committee detailed massive discrepancies, weak oversight and systemic lapses that have allegedly enabled the large-scale diversion of Nigeria’s crude oil revenue over the years.
The report followed months of forensic document reviews, written submissions and public hearings involving key players in the oil and financial sectors.
According to the report, a forensic review of records on domestic crude proceeds and tax oil proceeds revealed sale differentials, mismatches and unaccounted funds amounting to about $22bn.
The committee further uncovered a shortfall of $81bn between crude receipts declared by the Nigerian National Petroleum Company Limited (NNPCL) and those recorded by the Central Bank of Nigeria (CBN) for 2016 and 2017.
It added that its review of crude oil sales from 2015 to date, supported by investigations from international consultants, projected that over $200bn proceeds from crude oil sales remained unaccounted for globally.
The ad hoc committee traced the problem to faulty measurement systems, weak regulatory oversight and poor coordination among government agencies in the oil value chain.
It identified the use of unverified measuring instruments, lack of metrological control, ineffective interagency collaboration and uncoordinated enforcement mechanisms as major enablers of crude oil theft and revenue leakages.
The panel specifically faulted the suspension of the Weights and Measures Department’s activities in the upstream sector under the Petroleum Industry Act (PIA) 2021, describing the decision as one that undermined accountability and accurate measurement in crude oil operations.
The committee noted that accurate measurement at production sites and export terminals is a critical first step in tracking crude volumes and ensuring that all proceeds are properly accounted for.
PIA Host Community Provisions Not Implemented, Oil Thieves Walk Free
Beyond metering and measurement, the report raised concerns over the absence of a special court dedicated to the prosecution of oil thieves, lamenting that cases drag on for years without consequences for offenders.
It also flagged the non-implementation of the Host Communities Development Trust Fund (HCDTF) under the PIA, saying the failure to operationalise the fund has contributed to persistent sabotage and theft in oil-producing communities.
According to the committee, host communities feel excluded from oil benefits, leading to anger, vandalism and collaboration with criminal networks involved in crude theft and pipeline tapping.
₦300bn Domestic Crude Gap, Committee Demands Global Tracking of Funds
The panel projected that unaccounted proceeds from domestic crude sales alone amounted to about ₦300bn, and called for urgent local and international tracking, tracing and recovery of stolen crude oil funds.
It urged the Federal Government to grant it authority to track, trace and recover proceeds of stolen crude oil globally, saying such recoveries were crucial to rebuilding accountability in the oil sector, strengthening Nigeria’s fiscal position, and deterring future theft.
The committee recommended that the Federal Government should mandate the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to enforce international crude oil measurement standards at all production sites and export terminals.
Where necessary, it advised that the government should restore the Weights and Measures Department to its former regulatory role in the upstream sector, or strengthen NUPRC’s mandate to close all metering and measurement gaps.
The panel also called for the provision of modern surveillance technology and equipment to security agencies, including unmanned aerial vehicles (UAVs), real-time monitoring systems, and improved detection tools to strengthen the monitoring of oil facilities and detect theft, tampering and leakages as they occur.
It further proposed the establishment of a Maritime Trust Fund to support the development and maintenance of maritime infrastructure, training and safety operations, especially in oil-bearing waterways.
Another key recommendation was the creation of a special court to promptly prosecute crude oil thieves and their collaborators, with a view to ensuring swift trials and deterrent sentences.
Host Communities Fund, Abandoned Wells, Environmental Damage
The committee reiterated the need for immediate implementation of the Host Communities Development Trust Fund (HCDTF) to reduce sabotage, build trust and promote inclusion in the management of oil resources.
In addition to financial leakages, the report dwelt on the environmental cost of oil theft and poor regulation, noting the growing number of abandoned and poorly decommissioned oil wells across the Niger Delta.
It said many of these wells are leaking oil and gas into the environment, thereby polluting land, water sources and communities.
To address this, the committee recommended that such abandoned wells be ceded to NUPRC for onward handover to modular refineries, with the twin objective of increasing crude availability for local consumption and reducing vandalism and illegal refining activities.
Despite the grim figures, the panel noted a modest recovery in crude oil production.
It reported that production increased by 9.5 per cent in 2023, from 490.95 million barrels in 2022 to 537.57 million barrels, indicating some improvement in production and security conditions in recent months.
However, it warned that the progress would be unsustainable if systemic leakages, theft and poor oversight were not decisively addressed.
Committee Reconstituted After Ifeanyi Ubah’s Death, Wants Wider Mandate
Naijaonpoint understands that the ad hoc committee was reconstituted on February 11, 2025, following the death of its former chairman, Senator Ifeanyi Ubah.
In its interim submission, the reconstituted panel urged the Senate to grant it explicit authority to track, trace and recover proceeds of stolen crude oil globally, working with international partners and financial intelligence units.
It stressed that such a mandate would ensure that every dollar and naira traced to stolen crude can be pursued and potentially repatriated for the benefit of Nigeria.
‘Our Job Is Not to Recover Funds’ – Senate Draws Line
While commending the committee for what it described as a good job, the Senate insisted that recovering stolen funds is not its constitutional role.
Lawmakers directed the panel to conclude its investigation and name the oil thieves, after which the report and recommendations would be transmitted to the Executive arm for further action.
The Senate’s position has sparked debate, with many Nigerians wondering whether the executive will act decisively on the findings or allow them to gather dust like previous probes.
‘Stinking, Deeply Rooted Corruption’ – Analyst Blames Government
Reactions to the revelations have been a mix of anger, disappointment, resignation and silence, with many Nigerians calling for drastic measures to stop the bleeding in the oil sector.
Oil industry analyst, Idowu Christopher, said the development only confirmed what Nigerians had long suspected.
“Those who are angry and disappointed with the report are correct. This only proves what we have known for years – the level of corruption in the oil sector is stinking and deeply rooted,” Daily Post quoted Christopher as stating.
He accused the government of knowing the culprits but refusing to act.
“Is anybody surprised about the report? The answer is no. The government knows where the problem is coming from but refused to act. Apart from those who steal our crude oil, what about those who own the oil wells? Where is that done?
“How can an individual own an oil well, a commonwealth of the people being owned by one person, and the government is not doing anything about it? It is only in Nigeria that such an abnormality happens without consequences,” the Industry analyst queried.
Christopher backed the committee’s recommendation on oil wells and modular refineries.
“I like the recommendation that such oil wells should be recovered and handed over to NUPRC, which in turn will hand them over to modular refineries to increase crude availability for local consumption and reduce vandalism,” he said.
Christopher also linked the government’s inaction on the HCDTF to the persistence of theft.
“Again, why has the government not implemented the HCDTF under the PIA? That gap has been identified as one of the reasons for persistent sabotage and theft in oil-producing areas.
“So, as far as I am concerned, the government should be held responsible for allowing such huge proceeds to be unaccounted for because it has deliberately failed to perform its functions,” he told Daily Post.
‘Nothing Will Come Out of It’ – Legal Practitioner Resigns to Fate
However, for another analyst, a legal practitioner, Chikia Umeayo, there is no need for Nigerians to be shocked any longer.
“There is no need to be angry or disappointed because this kind of development has become a norm, a way of life in Nigeria,” he said.
He added that he would have been surprised if the report had turned out differently.
“In fact, it would have been surprising if the report was contrary to what we now have,” he noted.
Umeayo said many people have stopped reacting because past advocacy yielded no results.
“Some of us have been talking about these things for some years now without any result. The government does not want to take action; so we have decided to remain silent,” he said.
“I no longer bother myself about some of these reports because at the end of the day, nothing will come out of it. Absolutely nothing. So why should I be angry or disappointed over something I know will keep happening?”
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