…Nig lost 437,000bpd, $10bn from January-July 2024 – Deputy Speaker
…over $1.5bn used in securing oil infrastructure
By Gloria Ikibah
The House of Representatives Special Committee on Oil Theft and Losses has commenced a 2day investigative hearing on illegal lifting of crude oil in Nigeria, on Thursday in Abuja.
The Special Committee has been mandated to investigate all dimensions of oil theft and loses in the oil and gas sector in Nigeria, focusing on the actions of all activities including criminal gangs militia groups, the local populace, companies, employees and security agencies with a view to bringing those complicit to justice.
The committee was also mandated to investigate all expenses incurred by government, agencies for the purpose of combating crude oil theft and related matters.
In his opening remarks Speaker Tajudeen Abbas, who was represented by the Deputy Speaker, Benjamin Kalu decried the negative impact oil theft has on the nation’s economy, especially the daily losses of crude due to the activities of criminals.
He said between January to July 2024, Nigeria has lost 437,000 barrels of crude oil to the sum of $10 billion.
He said, “The statistics on crude oil theft are very alarming, and its negative impact on the economy is quite monumental. For instance, it is estimated that between January and July 2024, Nigeria lost an average of 437,000 barrels of crude oil per day due to theft, vandalism and other criminal activities. At the current price of oil, this translates to over $10bn over the same period.
“Apart from reduced government revenue to address the multi-faceted challenges of national development, other problems associated with crude oil theft include environmental degradation, heightened insecurity in the form of piracy, kidnapping, militancy and vandalism and the shut-down of production by many companies, among others.
“The reduction in government revenue has invariably been responsible for government borrowing to address budget deficits over the years”.
Kalu who pledged the readiness of the parliament to assist anti-graft agencies to eliminate various economic crimes from the sector, noted that corruption is one of the factors militating against sustainable development in the oil sector.
“We are determined to strengthen the Economic and Financial Crimes Commission, the Nigeria Extractive Industries Transparency Initiative and other anti-corruption agencies to frontally combat corruption in the oil and gas sector,” he assured.
In his goodwill message, the Secretary to the Government of the Federation, George Akume, who was represented by Director General Services, Office of the SGF, Maurice Nnamdi restate the commitment of the Federal Government to secure the nation’s oil and gas infrastructure, even as he noted that in the past four years, over $1.5bn has been spent in this regard.
He said, “The government has invested considerable resources in combating this menace.
“Since 2020, expenditure aimed at addressing crude oil theft and securing our oil infrastructure has exceeded $1.5bn. These funds have been allocated towards enhancing surveillance capabilities, securing pipelines, and increasing the presence of law enforcement agencies in critical oil-producing areas.”
Chairman of the Special Committee Rep. Alhassan Ado-Doguwa on behalf of the committee vowed to do a good job in the interest of Nigerians.
He said, “Our ultimate aim is to employ every legislative tool to unearth the root causes and immediate factors contributing to this crime, bring those complicit to justice and develop sustainable solutions that will safeguard the integrity of our oil sector and promote national development.
“To ensure a thorough investigation, our methodology includes inviting memoranda and presentations from key stakeholders within the oil industry and security sector and engaging in further discussions with international and local oil companies, host community leaders, and relevant agencies.”
He acknowledged that some challenges needs to be addressed and said: “Our committee has noted several critical issues, including vessels transporting stolen crude oil undetected, collaboration among government and security agencies in illicit activities and the inefficiencies of current measures to combat oil theft.
“We have identified that firepower and other weapons of engagement are inadequate compared to the number of security operatives drafted to combat armed crude oil thieves. The NNPC Ltd. has reported 900 infractions on its pipelines, and delayed judicial processes have resulted in the abandonment of cases, allowing culprits to return to their criminal activities.
“In light of these findings, our committee has resolved to enact adequate legislation, including budget allocations to support security agencies, improve existing laws to combat crude oil theft and collaborate with security agencies to prioritise the protection of national assets and critical infrastructure.
“We also emphasise the importance of involving Indigenous youths in ownership initiatives and converting seized refineries for legitimate use rather than destroying them.”
Meanwhile, the immediate past Deputy Speaker of the House, Rep. Idris Wase urged the Committee Chairman to brace up for what will come his way, noting that the oil thieves will come after him.
Giving his goodwill remarks at the event, Wase reminded the Rep. Doguwa that his job was a dangerous one.
“Mr Chairman, “You are involved in doing a very dangerous business. It is more than dangerous. Don’t take it lightly. It is not going to be easy for you and the committee members because you are going to face people who are sabotaging Nigeria’s economy.
“In other climes, these people are supposed to be on the gallows and face the death penalty. They will go after you; they will come after your life but God will shield you. He will protect you,” he prayed.