Senate Launches Probe Into Crude Oil Theft, Tasks Five Committees

Senate Launches Probe Into Crude Oil Theft, Tasks Five Committees

The Senate has mandated its committees on Petroleum Resources, (Upstream, downstream,) Gas, Host communities and Niger Delta to conduct investigation on oil theft in the region.

It specifically mandated the committees to investigate the actions of security forces, militia groups, local populace, company employees, and any individuals or entities suspected to be using sophisticated methods to pilfer from oil facilities within the country.

The resolution was sequel to adoption of a motion at plenary on Tuesday on ‘Urgent need to investigate incessant and nefarious acts of crude oil thefts in Niger- Delta region’.

The motion was sponsored by Ned Nwoko (PDP- Delta) and co-sponsored by SeEde Dafinone and J.Thomas.

Mr Nwoko, in his lead debate, said Nigeria was largely dependent on crude oil for its economic growth and development.

He said the National Bureau of Statistics (NBS) reported that oil sector contributed 6.33 per cent of the nation’s GDP which translated to 45.6 billion dollars in 2022 .

Mr Nwoko said the oil sector in Nigeria plays pivotal role in providing employment opportunities for millions of Nigerian citizens accounting for 70 per cent of its budget financing, while oil and gas made up of 90 per cent of export and 85 per cent of government revenue in the first quarter of 2022.

He said statistical data which has been reported over the years, indicated that pipeline vandalism, oil bunkering, has brought Nigeria Into serious socio-economic crisis.

The senator said current collaborative efforts involving joint task force of the military, with contributions of various security entities, state and local governments, and International Oil Companies (IOCs) in the Niger Delta region, has yielded positive results.

He said the efforts has led to an increase in oil production, reaching 1.51 million barrels per day in first quarter 2023.

This figure marks an improvement from the 1.49 million barrels per day recorded in the same quarter of 2022 and is notably higher than the production volume of 1.34 million barrels per day in the fourth quarter of 2022″ the senator said.

But Mr Nwoko said inspite of efforts of military personnel and security agencies in combating oil theft in the Niger Delta region, individuals within the institutions still engaged in the illicit activities.

“These individuals collaborate with unscrupulous figures within the oil industry to undermine the nation’s economy.

“Also observes that it has come to attention that oil theft in Nigeria thrives due to a troubling collaboration between security forces, militia groups, the local population, and certain employees within oll companies .

“These parties employ sophisticated methods to carry out theft from all facilities located within the country given Nigeria’s vast oil and gas reserves,” he said.

He expressed concerns about accusations and counter-accusations of oil bunkering and various other crisis between the military and local militia groups.

“In 2022, it was reported that Nigeria suffered daily loss of approximately 437,000 barrels of crude oil, amounting to a value of 23 million dollars, due to criminal activities.

”Moreover, between March 2023, Nigeria incurred a substantial loss of 65.7 million barrels of crude oil, valued at 83 dollars per barrel, translating to a staggering revenue loss of N2.3 trillion as a result of oil theft.”

He expressed worry that the activities of oil thieves and their collaborators has significantly hampered crude oil production posing a substantial threat to the nation’s economy.