Ike Amos
Dublin, Ireland — Nigeria Extractive Industries Transparency Initiative (NEITI) said it will be seeking the technical support of its international partners to help tackle the menace of crude oil theft in the country.
In a statement in Abuja, NEITI lamented that the country lost N16.25 trillion worth of crude oil over a 12-year period to theft.
According to the transparency agency, data tracked from an average of eight companies revealed that 619.7 million barrels of crude oil, valued at $46.16 billion or N16.25 trillion were stolen or lost between 2009 and 2020.
Giving a breakdown of the losses which were mainly from theft and sabotage, NEITI stated that in in 2009 when it commenced reporting of crude oil theft, Nigeria lost 69.49 million barrels valued at $4.31 billion, while the figures for 2010, 2011 and 2012 showed that 28.31 million, 38.61 million and 51.58 million barrels which were valued at $2.29 billion, $4.39 billion and $5.82 billion were lost respectively.
It noted that in 2013, losses to crude oil theft did not abate as 78.30 million barrels valued at $8.55 billion was lost; in 2014 and 2015, a combined loss of 67.29 million barrels valued at $5.57 billion was recorded, while it added that 2016 recorded the highest losses of 101.05 million barrels that was valued at $4.42 billion.
It further stated that the country recorded crude oil losses of 36.46 million barrel ($1.99 billion) in 2017; 53.281 ($3.837 billion) in 2018; 42.248 million barrels ($2.772 billion) in 2019 and 53.056 million barrels ($2.21 billion) in 2020.
NEITI stated that it was regrettable that at a time Nigeria’s economy is largely dependent on oil revenues, some Nigerians would choose to collude with foreign nationals to steal and sabotage the main sources of revenue for the federation.
Hence, it disclosed that as an agency with legitimate interests and mandates in enthroning transparency and accountability in the oil and gas sector, it would seek technical support where necessary from 57-member countries of the global Extractive Industries Transparency Initiative (EITI) to help tackle the international dimension of oil theft in the work of the investigative panel.
It noted that after a careful review of the Terms of Reference of the Panel on Oil Theft Investigation, it found the terms of reference of the Committee, comprehensive, incisive, and attainable.
It welcomed the decision of the federal government to set up the Special Investigative Panel, while it described the decision as bold, courageous and timely given the havoc oil theft has wrecked in oil production and the country’s revenue generation.
The agency said: “The panel is among other things required to establish the ramifications of crude oil theft/losses in Nigeria; ascertain the causative factors immediate and remote of crude oil theft/ losses in the country; with the widest possible amplitude, identify persons/entities whether public, private or foreign, involved in the criminal enterprise; ascertain the illegal insertion into the Trans Escravos Pipelines (TEP) around Yokri area in Burutu Local Government Area of Delta State.
“Other recommendations in the Terms of Reference are to establish the level of culpability of identified persons/entities in the enterprise; Examine the specific roles of Regulatory Agencies; Security Agencies Tiers/Arms of Government and International Oil Companies(IOCs) in aiding and abating the criminal enterprise; Assess the efficacy of the security architecture/arrangement in tackling crude oil theft/losses and associated petroleum products and recommend appropriate, commensurate and sufficiently, deterrent sanctions on all those culpable.
“The Panel is also expected to recommend steps, procedures, and processes to be taken by the government to eliminate the enterprise in the industry to prevent future occurrences.”
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