In a shocking revelation, the Federal Government unveiled a staggering revelation of more than N4.3 trillion worth of crude oil theft, occurring in a staggering 7,143 pipeline vandalism cases over a period of five years. This disconcerting news emerged during the Nigeria International Pipeline Technology and Security Conference held in Abuja, organized by the Pipeline Professionals Association of Nigeria under the theme, ‘Bolstering Regulations, Technology, and Security for Growth.’
The disclosure was made in a presentation by the Nigeria Extractive Industries Transparency Initiative (NEITI), Federal Government Unveiled, which described the ongoing oil theft and losses as a national emergency. Ogbonnaya Orji, the Executive Secretary of NEITI, emphasized that this emergency poses a severe threat to the nation’s oil exploration and exploitation, with dire consequences for economic growth, business opportunities, and the profits of oil companies.
The shocking data provided by NEITI’s reports revealed the extent of the crisis, with 7,143 cases of pipeline breakages and deliberate vandalism occurring between 2017 and 2021. These incidents resulted in the theft of 208.639 million barrels of crude oil, valued at $12.74 million or N4.325 trillion. Furthermore, during the same period, Nigeria expended N471.493 billion to repair or maintain pipelines damaged due to these nefarious activities.
From the 2021 Oil and Gas Industry Report, it was revealed that this sector accounted for 72.26 percent of Nigeria’s total exports and government’s foreign exchange, contributing 40.55 percent to government revenue and providing 19,171 jobs. However, the nation has failed to reap the full benefits of its oil and gas resources due to rampant oil theft, pipeline vandalism, pipeline integrity compromises, sabotage, and general insecurity in the region.
NEITI’s investigations have shown that oil theft primarily occurs through techniques like pipeline clamping, illegal connections to major pipelines, exploitation of abandoned oil wellheads, pipeline breakages, and vandalism of critical national assets to siphon crude oil into waiting vessels at strategic terminals. This criminal activity often happens within a backdrop of complicity and silence within local communities.
The Executive Secretary underscored the complicity of some members of the Pipeline Professionals Association of Nigeria, who are directly or indirectly involved in facilitating oil theft by providing the skills and knowledge required for these illicit operations. He called on the association to establish stringent regulations and impose appropriate sanctions to curb the involvement of its members.
Orji further highlighted that NEITI has publicly disclosed empirical data revealing a staggering 619.7 million barrels of crude oil losses valued at $46.16 billion or N16.25 trillion between 2009 and 2020. Additionally, Nigeria suffered a loss of 4.2 billion liters of petroleum products from refineries, valued at $1.84 billion, between 2009 and 2018. These losses far exceed the country’s foreign reserves and dwarf its savings in the Excess Crude Account.
Concluding his address, Orji stressed that Nigeria’s economy cannot thrive in an environment plagued by oil theft, pipeline vandalism, and general insecurity in oil-producing communities. The urgent need for effective regulation, security, and technological measures was emphasized as critical to addressing this crisis that has far-reaching implications for the nation’s prosperity and security.
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