The Senate revealed on Tuesday that Nigeria has incurred losses of N2.3 trillion this year due to oil theft.
As a result, it has called for a comprehensive investigation into the activities of security forces and militia groups employing sophisticated methods to steal crude oil in the country.
This decision was prompted by a motion put forth during the plenary by Senator Ned Munir Nwoko, representing Delta North.
Senator Nwoko pointed out that available statistical data clearly indicate that pipeline vandalism and oil bunkering have plunged Nigeria into a severe socio-economic crisis. He alleged that some individuals within the security agencies had colluded with unscrupulous individuals in the oil industry to engage in the illicit activity of oil theft.
This collaboration, he argued, undermined the collective efforts of the Joint Task Force of the Nigerian military and various other security entities working to combat this issue.
Nwoko said, “The current collaborative efforts involving the Joint Task Force of the Nigerian military, operations like Operation Delta Safe and Operation Dakartada Barawo, along with the contributions of various security entities, state and local governments, and International Oil Companies (IOCs) in the Niger Delta region have yielded positive results.
“These efforts have led to an increase in oil production, reaching 1.51 million barrels per day in the first quarter of 2023.
“This figure marks an improvement from the 1.49 million barrels per day recorded in the same quarter of 2022 and is notably higher than the production volume of 1.34 million barrels per day in the fourth quarter of 2022.
“Despite the efforts of certain military personnel and security agencies like the Nigeria Security and Civil Defense Corps (NSCDC) and Department of State Services (DSS) in combating oil theft in the Niger Delta region, there are individuals within these institutions who engage in illicit activities.
“These individuals collaborate with unscrupulous figures within the oil industry to undermine the nation’s economy.
“Also observes that it has come to attention that oil theft in Nigeria thrives due to a troubling collaboration between security forces, militia groups, the local population, and certain employees within oil companies.
“These parties employ sophisticated methods to carry out theft from oil facilities located within the country. Given Nigeria’s vast oil and gas reserves, one would expect crude oil production to continuously increase, aligning with OPEC’s production quota of 1.74 million barrels per day.”
Nwoko further said there had been accusations and counter-accusations of oil bunkering and various other crimes between the military and local militia groups.
These allegations, he said, underscored the significant level of sabotage and disruption to the nation’s economic backbone.
“In 2022, it was reported that Nigeria suffered daily losses of approximately 437,000 barrels of crude oil, amounting to a value of $23 million, due to criminal activities.
“In March 2023, Nigeria incurred a substantial loss of 65.7 million barrels of crude oil, valued at $83 per barrel, translating to a staggering revenue loss of N2.3 trillion as a result of oil theft,” he added.
He, therefore, urged the Senate to carry out a holistic investigation into the activities of the oil thieves and their collaborators in the security forces.
Senator Buhari Abdulfatai, representing the APC in Oyo, stressed the need for punitive measures to combat oil bunkering. He pointed out that despite annual investigations, there have been no tangible outcomes, indicating the necessity for a review of existing laws and the implementation of stringent actions against oil thieves.
Senator Adams Oshiomhole, also from the APC in Edo, highlighted that oil theft is an organized crime involving both bunkers and security operatives. This, he stated, is the reason why many security agents seek to be assigned to oil-producing communities.
Consequently, the Senate has instructed its committees on Petroleum Resources (Upstream, Downstream, and Gas), Host Communities, and Niger Delta Affairs to conduct a comprehensive investigation into the activities of security forces, militia groups, local residents, oil company employees, and any individuals or entities suspected of using sophisticated methods to pilfer from oil facilities.
Senate President Godswill Akpabio noted that oil theft has had a negative impact on the country’s oil production capacity, despite its growing population. He urged the committees to conduct a thorough investigation and report their findings back to the Senate within six weeks.