$1.84bn Worth of Petroleum Products Stolen from Nigerian Refineries in Nine Years, Says NEITI.
Dr. Ogbonnaya Orji, the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), revealed that Nigeria lost $1.84 billion worth of petroleum products due to oil theft from refineries over a nine-year period. This disclosure was made on Monday during the opening ceremony of the 2024 NEITI board retreat/meeting in Lagos.
According to Dr. Orji, the loss, which occurred between 2009 and 2018, amounted to 4.2 billion litres of petroleum products, estimated at 140,000 barrels per day. He further detailed that audits from 2009 to 2020 reported Nigeria’s losses due to crude oil theft over a 12-year period at 619.7 million barrels, valued at $46.16 billion or ₦16.25 trillion.
Baffled by the escalating oil theft, Orji stated, “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 ₦16.25 trillion. Similarly, between 2009 and 2018, the country also lost 4.2 billion litres of petroleum products from refineries valued at $1.84 billion.”
The NEITI boss highlighted the negative economic impact of these losses, which led the previous administration to establish a special panel to study the situation and propose solutions. NEITI conducted a report with recommendations to curb oil theft, urging the current administration to review and implement these recommendations.
The five-day retreat offers a platform to discuss strategies for addressing oil theft, illegal mining, pipeline vandalism, and other governance challenges impacting revenue and investment opportunities.
On the issue of energy transition, Orji expressed concerns about the nation’s heavy reliance on hydrocarbon revenues amid a global shift towards renewable energy. He warned that Nigeria’s economy faces significant threats due to the declining demand for oil.
“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,” Orji stated. He emphasized the need for the nation to explore opportunities within the Extractive Industries Transparency Initiative and its global network.
Orji noted that the transition from fossil fuels would necessitate substantial financial investment to generate renewable energy, replacing the energy previously derived from carbon fuels. This challenge is compounded by the need to close Nigeria’s existing energy supply gap.
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Lagos State Governor, Babajide Sanwo-Olu, represented by the Commissioner for Energy, Biodun Ogunleye, underscored the urgency of revising existing laws that place control over oil and mineral resources under the Federal Government. He stressed that this review is crucial for promoting investment in the extractive industry and diversifying the nation’s economy.
“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 increased engagement between the Federal Government, private sector, and sub-national governments in developing natural resources. Key areas for engagement include solid minerals development, host community programs, environmental sustainability, energy efficiency, domestic resource mobilization, and poverty reduction initiatives.
The NEITI retreat serves as a critical forum for addressing these pressing issues and formulating actionable strategies to safeguard Nigeria’s extractive industries and broader economic interests.
