Oil theft: Group bemoans revenue loss, proffer wayforward

A not-for-profit non-governmental organisation, the New Nigerian Foundation (NFF) and other stakeholders from the oil and gas sector as well as the media have bemoaned the perpetual financial haemorrhage arising from crude oil theft in the Niger Delta.

This is just as they identified causes, impacts and possible remedies to the menace of crude oil theft in the Niger Delta with emphasis on strong advocacy to stamp out the menace.

The issues were raised at a day seminar held in Warri, Delta State, facilitated by NFF on advocacy against crude oil theft in Nigeria based on the study carried out by the Nigeria Natural Resource Charter (NNRC)

Head of NNRC, Dr Niyi Awodeyi, in his insightful power point presentation, disclosed that about N995.2 billion is annually lost to crude oil theft by the federal government – an amount that could reduce the poverty index of Nigerians.

He identified poor governance of oil revenue and corruption, lack of adherence to international best practices by international oil companies, and youth unemployment and underemployment as parts of the causes of crude oil theft.

Awodeyi underscored the imbalance in the existing federal structure as a factor that has been encouraging corruption, often leading to the disappearance of monies accrued to host communities for developmental purposes.

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He quoted World Bank report which says that 80 per cent of total revenue from oil gets to only one per cent of Nigerians, a situation, he said, has birthed inequality with its attendant militancy, kidnapping, illegal oil bunkering and other crimes in the region.

Earlier, Assistant Director of the Ministry of Oil & Gas, Delta State, Mr Godwin Oziboro, in his Goodwil Message, had also identified poverty, corruption, unemployment, ineffective enforcement of laws and absence of deterrent measures to prosecute culprits as some of the causes of the rise in crude oil theft.

A representative of the Department for Petroleum Resources (DPR), Mr Efe Bright, blamed third party interference on oil facilities, lack of maintenance of the right of way by IOCs and absence of surveillance cameras to monitor oil pipelines as reasons crude oil theft is on the rise in the region.

The stakeholders agreed unequivocally that some drastic measures must be taken by all concerned, including host communities, not only to save revenue loss through crude oil theft but a safe environment for generations unborn.

They, therefore, urged the Federal Government, on its part, to engage in more constructive dialogue with all stakeholders, strengthen security agencies for effective operations,, intensify diplomatic relations with neighbouring countries aiding the menace, prosecute crude oil thieves with commensurate punitive measures and legalise modular refineries or develop an integrated approach and plan in constructing them.

Other remedies proffered, among others,  include the adoption of technology such as drones for pipeline surveillance and microscopic marking of crude oil to deter oil thieves as well as using data analytics to find, study and make connections between stolen oil and where it is consumed.

The seminar tagged: Advocacy Against Crude Oil Theft Stakeholders Engagement was facilitated by representatives of the New Nigeria Foundation (NFF), Assistant Programme Officer, Abimbola Onanuga and ‘Layide Adesanya.

According to the duo, the NGO “was incorporated in 2000 as an NGO to represent a new institutional paradigm that provides a platform for mobilizing non-traditional resources through the promotion of public-private partnerships to spur sustainable development efforts.”