Senate Uncovers $300Bn Revenue Loss in Crude Oil Theft

The Senate has received the interim report of its Ad Hoc Committee on Crude Oil Theft and Sabotage in the Niger Delta, revealing alarming financial losses estimated at over $300 billion due to unaccounted crude oil proceeds over the years.

Presenting the report during plenary on Wednesday, Senator Ned Nwoko (Delta North), who chairs the committee, said the preliminary findings point to widespread systemic leakages and inadequate monitoring mechanisms in Nigeria’s oil production and export chain.

According to Nwoko, the committee has recommended the strict enforcement of globally accepted crude oil measurement standards at all production and export points to ensure transparency and accountability in the sector.

He further advised that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) should either procure and deploy modern metering technologies or that the responsibility for accurate measurement be reassigned to the Weights and Measures Department under the Federal Ministry of Industry, Trade and Investment.

The committee also urged the Federal Government to enhance security in oil-producing regions by deploying advanced surveillance systems, including unmanned aerial vehicles (UAVs), to aid law enforcement agencies in curbing oil theft and pipeline vandalism.

Additionally, the report proposed the creation of a Maritime Trust Fund to strengthen maritime training, improve safety, and bolster security within Nigeria’s territorial waters.

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“The federal government should set up a special court to promptly prosecute crude oil thieves properly and their collaborators,” Nwoko said.

“The federal government should immediately implement the host communities development trust fund under the Petroleum Industry Act, PIA, to reduce sabotage.

“All abandoned and decommissioned wells should be completely ceded to NUPRC who should in turn hand such wells to modular refineries to reduce sabotage and increase crude availability for local
consumption.

“The ad hoc committee should be given the mandate to track, trace and recover all proceeds of stolen crude oil both locally and internationally, as forensic review by the consultant shows over $22 billion, $81 billion and $200 billion remains unaccounted.”

He said the committee should be empowered to “track and trace” proceeds of stolen crude oil locally and internationally, noting that consultant reviews suggest over $22 billion, $81 billion, and $200 billion in different periods remain unaccounted.