Nigeria Loses $1.84bn in Petroleum Products Amid Rampant Oil Theft, NEITI Reveals
The Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Dr. Ogbonnaya Orji, has revealed that Nigeria lost $1.84 billion worth of petroleum products from its refineries over a nine-year period due to oil theft.
Speaking on Monday at the opening ceremony of the 2024 NEITI board retreat in Lagos, Orji detailed the staggering losses, stating that 4.2 billion litres of petroleum products were siphoned from the refineries between 2009 and 2018. This equates to a daily loss of 140,000 barrels.
“Figures contained in our 2009 to 2020 audits have put Nigeria’s losses to crude oil theft over a 12-year period at 619.7 million barrels, valued at $46.16 billion or N16.25 trillion. Similarly, between 2009 and 2018, the country also lost 4.2 billion litres of petroleum products from refineries, valued at $1.84 billion,” Orji disclosed, expressing his bafflement at the increasing rate of oil theft.
He noted that the severity of these losses prompted the previous administration to establish a special panel to investigate and address the issue. NEITI has since produced a report with recommendations to curb oil theft, urging the current administration to implement these suggestions.
Orji emphasized the importance of the five-day retreat as a platform to explore solutions to the challenges of oil theft, illegal mining, and pipeline vandalism, all of which contribute to revenue losses and hinder investment opportunities.
On the topic of energy transition, Orji expressed concern about the global shift from fossil fuels to renewable energy, which threatens Nigeria’s oil-dependent economy. “Our country, Nigeria, is heavily dependent on oil revenues for survival. It is within the ambit of this board to support our government and citizens with timely policy decisions and strategies to deal with this unavoidable unfolding development in the extractive sector,” he stated.
Orji warned that Nigeria faces significant economic threats from the declining global demand for crude oil, which necessitates a shift towards renewable energy. He highlighted the need for substantial financial investment to generate renewable energy and close the country’s current energy supply gap.
Lagos State Governor Babajide Sanwo-Olu, represented by the Commissioner for Energy, Biodun Ogunleye, underscored the urgency of reviewing laws that grant the Federal Government control over oil and mineral resources. “The need for review of these laws has become very urgent if the Federal Government’s policy on Ease of Doing Business is to succeed, especially at the sub-national levels. The review is also important to promote investments in the extractive industry and diversify our nation’s economy,” Sanwo-Olu stated.
He called for greater engagement between the Federal Government, private sector, and sub-national governments to develop Nigeria’s natural resources, emphasizing the importance of solid minerals development, environmental sustainability, and poverty reduction initiatives.
The NEITI retreat continues to serve as a critical forum for addressing the pressing challenges facing Nigeria’s extractive industries and exploring avenues for sustainable economic growth.
