Crude supply: N’Assembly probes $10bn oil theft, summons NNPC, Dangote
In a significant move to combat the rampant issue of oil theft, the Nigerian National Assembly has launched a comprehensive investigation into the illegal lifting of crude oil in the country. This initiative comes after the House of Representatives revealed that Nigeria lost approximately $10 billion due to theft, vandalism, and other criminal activities between January and July 2024. The loss equates to an average of 437,000 barrels of crude oil daily.
Investigations Begin: The House of Representatives Special Committee on Oil Theft and Losses has initiated a probe into the widespread oil theft. The Senate has joined this effort, summoning key stakeholders, including the Nigerian National Petroleum Company Limited (NNPC) and Dangote Petroleum Refinery, for detailed questioning.
Leadership and Attendance: The investigation was declared open by the Speaker of the House, Tajudeen Abbas, represented by Deputy Speaker Benjamin Kalu. Key military and police officials, including representatives of the Chief of Defence Staff, Chief of Army Staff, Chief of Air Staff, and Inspector-General of Police, were present.
Committee Mandate: The Special Committee on Oil Theft, chaired by Alhassan Ado-Doguwa, representing Doguwa/Tudun Wada Federal Constituency in Kano State, is tasked with investigating oil theft comprehensively. The committee aims to identify criminal gangs, militia groups, local communities, companies, and security agencies involved in the theft.
Economic and Environmental Impact: Speaker Abbas, represented by Deputy Speaker Kalu, highlighted the severe economic impact of oil theft. “The statistics on crude oil theft are alarming, with Nigeria losing over $10 billion in just seven months,” he stated. He also pointed out the broader issues of environmental degradation, increased insecurity, and the shutdown of production by several companies.
Government’s Commitment: Secretary to the Government of the Federation, George Akume, represented by Permanent Secretary Maurice Nnamdi, reiterated the government’s commitment to securing oil and gas infrastructure. Akume disclosed that over $1.5 billion had been spent since 2020 on combating oil theft and securing pipelines.
Committee’s Approach: Ado-Doguwa assured the public of the committee’s dedication to uncovering the root causes of oil theft and bringing those responsible to justice. The committee plans to engage with key stakeholders, including international and local oil companies, host community leaders, and relevant agencies, to develop sustainable solutions.
Senate’s Involvement: The Senate has scheduled a public hearing for September 10-12, 2024, to interrogate key figures in the petroleum sector. Led by Senator Opeyemi Bamidele (APC Ekiti Central), the 15-member Senate Ad-Hoc Committee aims to expose economic saboteurs and address the importation of substandard fuel into Nigeria.
Broader Investigation: The Senate committee will investigate compliance with the Petroleum Industry Act, transparency in NNPC’s Direct Sale and Direct Purchase arrangements, and the effectiveness of current measures to combat oil theft. They will also scrutinize the quality control processes of various institutions involved in the importation and distribution chain.
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Challenges and Warnings: The investigation is recognized as dangerous work. Immediate past Deputy Speaker Idris Wase warned Ado-Doguwa about the risks involved, noting that oil thieves might target those involved in the investigation.
Committee Members: The Senate committee includes Senators Asuquo Ekpenyong, Abdullahi Yahaya, Mohammed Monguno, Adeola Olamilekan, Diket Plang, Harry Banigo, Khabeeb Mustapha, Adams Oshiomhole, Jonah Eteng, Adetokunbo Abiru, Osita Izunaso, Sahabi Ya’u, Alhaji Abdul Ningi, and Ifeanyi Ubah.
The National Assembly’s investigation represents a determined effort to address the systemic issues in Nigeria’s oil sector. By holding key stakeholders accountable and uncovering the root causes of oil theft, the Assembly aims to safeguard the nation’s economic interests and ensure a more transparent and efficient oil industry.
