ADVERTISEMENT

ADVERTISEMENT

…committee faults NUPRC for shunning stakeholders’ meeting

…as security agencies demand stronger laws to curb economic sabotage

By Gloria Ikibah

The House of Representatives Special Committee on Crude Oil Theft has called for the establishment of a special court to prosecute crude oil thieves and pipeline vandals, arguing that Nigeria’s current legal framework is too weak to deter offenders undermining the country’s economy and national security.

The proposal emerged on Thursday during a stakeholders’ meeting convened by the committee as part of ongoing efforts to identify practical measures to curb crude oil theft and sabotage across the oil and gas sector.

Chairman of the committee, Rep. Alhassan Ado Doguwa, said the country must urgently overhaul outdated laws governing oil-related offences, insisting that existing penalties no longer reflect the seriousness of the crimes.

According to him, many of the laws currently relied upon by the courts were enacted during the military era and have failed to keep pace with developments in the global energy industry.

He said: “We have been able to achieve some very remarkable progress in the course of our interface. We all agreed to work on the same page to address the existing legal frameworks and some of the bottlenecks affecting them.

“The global oil and gas economy is now in an advanced stage. Virtually all oil-producing countries are making progress because they have provided effective legal instruments to address their challenges. For this reason, we believe Nigeria should also review some of its laws.”

Doguwa clarified that the proposed reforms would not affect the provisions of the Petroleum Industry Act.

“Some may ask what happens to the PIA. This has got nothing to do with the PIA. The PIA merely addresses the fundamentals and basic principles of doing business within the global oil economy. None of its commitments or provisions will be affected.

“However, we still have old legislations, some dating back to the military era, including military decrees and orders, which are still being applied at various levels. The courts have no option but to rely on those laws.

“Unless we provide new measures, new laws and a new legal framework, the courts will continue to rely on these obsolete legislations in handling serious criminality within Nigeria’s oil and gas sector”, he added.

He pledged that the House will work closely with the Office of the National Security Adviser to strengthen efforts against crude oil theft.

“I want to assure Nigerians that the National Assembly, especially the House of Representatives through this committee, will partner with the Office of the National Security Adviser to effectively combat crude oil theft and every other criminal activity within the oil and gas environment.

“We must not forget that our daily crude oil production target in the budget remains below expectations. Until we address this problem, our production projections may continue to fall short”, he stated.

The lawmaker disclosed that senior officers from the Nigerian Army, Nigerian Navy, Nigerian Air Force, Nigeria Police Force and the Nigeria Security and Civil Defence Corps attended the meeting.

However, he expressed disappointment over the absence of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), describing the agency’s failure to attend as unacceptable.

“It was rather unfortunate that some of the critical regulatory agencies in the oil and gas sector, particularly the NUPRC, neither attended nor sent representatives.

“We frown at that action and have directed the Clerk of the Committee to write to them, requiring them to appear before the committee because they are key stakeholders in the fight against this serious problem bedevilling our country”, Doguwa said.

The Chairman said the committee was considering legislation to establish dedicated courts for crude oil theft and related offences, arguing that delays in the conventional judicial system often allow offenders to evade justice.

“We have also recommended in previous bills before the House the possibility of establishing a special court for these kinds of crimes because the crimes themselves are special.

“If we allow these criminal cases to go through the conventional court system, considering the delays involved, many of them will remain unresolved while the criminals escape appropriate punishment”, he noted.

A member of the committee, Rep. Cyril Hart, said addressing crude oil theft would require more than legal reforms, pointing to funding challenges and underutilised oil assets.

“The Chairman has highlighted the issue of obsolete infrastructure. There is another area which has to do with funding.

“The PIA makes it very clear that the oil belongs to the people of Nigeria. It does not belong to the oil companies. Therefore, if an oil block is not exploited for the benefit of Nigerians, that amounts to crude oil loss and economic sabotage.

“If any licence holder fails to produce within the stipulated timeline, that also amounts to economic sabotage.

“That is another major area we need to examine. We are currently witnessing divestment, with these critical national assets being transferred to Nigerian companies that may not have the required financial capacity, especially since the sector is dollar-denominated.

“If they lack the necessary capital, they may struggle. We must ensure they possess the capacity to maximise production. Nigeria has about 38 billion barrels of crude oil reserves. That is enormous”, he said.

Representing the National Security Adviser, Goodluck Ilajufi, said experience had shown that weak punishments remained one of the biggest obstacles to tackling oil theft.

“Through our work, we have reached a point where the kind of support we require can only come from the National Assembly.

“In your earlier remarks, you spoke about reforms and new investments coming into the industry. Part of the reason we are here is to put our house in order.

“If we are asking investors to commit billions of dollars to our economy, they must be confident that adequate security exists”, Ilajufi stated.

He therefore urged lawmakers to strengthen the legal regime governing petroleum-related offences.

“Specifically, we seek your support in strengthening the punishment regime for thieves, vandals and other criminal elements.

“My experience in the field is that after enormous state resources are spent arresting and prosecuting these criminals, the punishment they eventually receive is almost meaningless.

“A judge may sentence someone to five years imprisonment with an option of a N100,000 fine, or even six months imprisonment. That makes a mockery of the entire process.

“In some instances, suspects simply plead guilty because they already know the punishment will be lenient.

“We therefore require amendments to legislations such as the Miscellaneous Offences Act, particularly Section 107 relating to tampering with petroleum infrastructure and Section 118 relating to adulteration of petroleum products.
“If these laws are not strengthened, the deterrent effect will remain weak”, he added.

Also speaking, the Assistant Commandant General (Operations) of the Nigeria Security and Civil Defence Corps, David Idowu, backed the proposal for a special court, saying weak legislation had continued to frustrate efforts to secure convictions.

“I also want to appeal, if it has not already been included in the proposed amendments, for the establishment of special courts to try crude oil theft offenders.

“I remember when I served as a State Commandant. A lawyer returned from court one Monday in tears because the punishment handed down did not reflect the gravity of the offence.

“If there is a special court to try these offenders, including the shadow actors behind these crimes, they will receive appropriate punishment”, he noted.

A representative of the Nigeria Police Force’s Petroleum and Illegal Bunkering Prevention Unit, CSP Idris Abdullahi Mohammed, also reaffirmed the Force’s commitment to working with other security agencies and stakeholders to combat crude oil theft and other forms of sabotage within the country’s oil and gas industry.