Federal Government on Thursday expressed grave concern over the Nigeria Extractive Industries Transparency Initiative (NEITI) 2020 Oil and Gas Report on the 619 million stolen barrels of crude oil valued at $46 billion between 2009 and 2020.
Secretary to the Government of the Federation (SGF), Senator George Akume expressed the concern during the flag-off of the 2-day public hearing on Oil theft and losses in the oil and gas sector in Nigeria’, held at the instance of the House of Representatives’ Special Committee on Oil Theft, chaired by Hon. Al-hassan Ado-Doguwa.
The SGF who was represented by Permanent Secretary, General Services, Mr. Maurice Nnamdi who described the menace as a “matter of grave national importance”, frowned at the pervasive issue of oil theft and the resultant losses in the oil and gas sector, as well as the substantial expenses incurred by government in combatting this menace.
He said: “Nigeria, blessed with abundant natural resources, particularly crude oil, has faced persistent challenges in harnessing these resources for the collective prosperity of our people. Oil theft, a malignant scourge, continues to undermine our national economy, compromise our security, and erode the trust of both local and international stakeholders.
“Indeed, the magnitude of oil theft in Nigeria is staggering. In recent years, Nigeria has faced an alarming rise in crude oil theft, resulting in substantial losses that have devastating implications for our economy and national security.
“The statistics are staggering. For example, the Nigeria Extractive Industries Transparency Initiative (NEITI) 2020 Oil and Gas Report indicates that 619 million barrels of crude valued at $46 billion were stolen in the period 2009-2020.
“Therefore, Nigeria has continually failed to meet its daily production quota as set by the Organisation of the Petroleum Exporting Countries (OPEC). This not only undermines our revenues but also hampers the provision of essential services that millions of Nigerians rely upon.
“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 $1.5 billion USD. These funds have been allocated towards enhancing surveillance capabilities, securing pipelines, and increasing the presence of law enforcement agencies in critical oil-producing areas.
“Thus, this hearing marks a pivotal step in our concerted efforts to confront this issue head-on. It is a demonstration of Government’s unwavering commitment to transparency, accountability, and the rule of law. Today, we come together not only to scrutinize the extent of oil theft and its implications but also to chart a course for comprehensive solutions that will safeguard our nation’s wealth.”
To this end, he assured that the present administration is implementing a multi-faceted approach that encompasses robust legislation, enhanced security measures, and community engagement.
In his remarks, Chairman, Special Committee on Oil Theft, Hon. Alhassan Ado-Doguwa explained that the committee was tasked with the monumental responsibility of investigating and loses all dimensions of oil theft, examine the actions of criminal gangs, militia groups, the local populace, company employees, and the few security agencies sabotaging the industry.
“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.
“Our mandate encompasses a comprehensive investigation into the causes of oil theft and losses, scrutinizing all expenditures by government agencies aimed at combating this menace, reviewing existing legislation, and proposing necessary amendments or new laws. We are also committed to collaborating with global partners, adopting cutting-edge technologies, and enhancing our security architecture to effectively address and eliminate crude oil theft in the hydrocarbon value chain in our oil and gas sector.
“To ensure a thorough investigation, our methodology includes inviting memoranda and presentations from key stakeholders within the oil industry and security sector, holding investigative hearing meetings, conducting on-site visits, and engaging in further discussions with international and local oil companies, host community leaders, and relevant agencies. In due cause we will organize town hall meetings, particularly in the affected regions and a National Legislative Summit on Oil Theft/Losses in Nigeria to foster broader engagement and sensitization.
“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 firepower and other weapons of engagement are inadequate compared to the number of security operatives drafted to combat armed crude oil thieves.
“The NNPC Limited 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. The presence of high-powered illegal infrastructure for exploring and refining crude oil has significantly reduced production to 1,300,000 Bpd from 2,500,000 Bpd.
“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 prioritize the protection of National Assets and Critical Infrastructure.
“We also emphasize the importance of involving indigenous youths in ownership initiatives and converting seized refineries for legitimate use rather than destroying them.
“Our discussions with stakeholders have revealed that oil theft is not only a significant revenue loss for the country but also a threat to National Security and regional stability. The theft is categorized into on-shore losses, involving sabotage of pipelines and installations for local markets, and off-shore losses, perpetrated by organized criminal syndicates for international buyers.
“Addressing this issue requires a multifaceted approach, including effective prosecution and punishment of perpetrators, better synergy among security agencies, maritime safety review, financial responsibility, and deployment of advanced technology. International collaboration is also essential to complement our efforts.”
The Stakeholders who spoke during the hearing, called on the Nigerian Navy to desist from burning of vessels, crude oil and other facilities seized during their operations.
They also harped on the need for involvement of Local Government Councils with the view to nip the crisis in the bid.
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