The National Security Adviser (NSA), Malam Nuhu Ribadu, over the weekend disclosed that the country loses an average of 400,000 barrels of crude oil daily to local and international thieves despite efforts to end the menace.
Ribadu said these painful losses and economic sabotage translated to the country losing a whooping $4M every day
The Adamawa born former police officer was said to have confirmed this when he led a presidential delegation to inspect oil and gas facilities at Owaza in Abia and Odogwa in Etche Local Government Area of Rivers on Saturday where some illegal connections used for siphoning of crude oil were also discovered.
He said the activities of oil thieves and pipeline vandals had impacted negatively on the nation’s economy and were partly responsible for the rising cost of living in the country.
Ribadu, while expressing his frustration was quoted to have said that it was unfortunate that few individuals would steal our common resources, and in the process cause unbelievable loss to both the nation, communities and the people.
He explained that, “Nigeria has the capacity to produce 2 million barrels of crude daily, but we are currently producing less than 1.6 million barrels due to theft and vandalism of pipelines.
“So, we are talking about 400,000 barrels of crude oil going to waste with few criminals and economic saboteurs not even getting much out of it,” he said.
Ribadu said the operators of artisanal refineries collect a small quantity of crude oil when they broke the pipelines while larger volumes of oil were spilled on the environment.
“The value of 400,000 barrels of oil today is about 4 million dollars, and every day, we lose this amount because of this irresponsible behaviour.
“If you multiply 4 million dollars by 365 days (one year), you will see that it is a lot of money running into billions of dollars.
“Currently, the country is in desperate need of money as the Naira is continuously losing its value because we earn less money. If we earn more money, it will not only help strengthen our currency but reflect in everything, including cost of living in the country,” he added.
A report published as far back 2018 by Nigeria Extractive Industries Transparency Initiative (NEITI) said that the country lost about $42 billion to crude theft as well as domestic and refined petroleum products losses between 2009 and 2018.
In its Policy Brief titled “Stemming the Increasing Cost of Oil Theft to Nigeria,” NEITI alerted the nation that crude oil and refined product valued at about $41.9 billion were stolen from Nigeria during the period.
The brief contains graphic information and data on the cost of oil theft to the country as well as other far-reaching recommendations in the areas of security overhaul, country engagements, diplomatic approach, enforcement, etc.
The report gave the breakdown of the losses to include about $38.5 billion on crude theft alone, $1.6 billion on domestic crude and another $1.8 billion on refined petroleum products.
NEITI blamed the losses to the government not embracing oil fingerprinting technology, absence of comprehensive metering infrastructure of all oil facilities, and other creative strategies to combat the growing menace of theft of Nigeria’s crude oil and refined petroleum products.
The transparency agency said in the face of current dwindling revenues, paying priority attention to oil theft in the country’s oil and gas industry has become necessary to expand revenue generation.
In addition, the report said Nigeria loses an average of $11 million daily, $349 million in a month and about $4.2 billion annually to crude and product losses arising from stealing, process lapses and pipeline vandalism.
While figures from government put the loss at between 150,000-250,000 barrels per day (bpd), data from private studies give an estimate of between 200,000 and 400,000 bpd.
The madness and a well organised and sophisticated crime as it has always been described had been an albatross on the neck of the country from time immemorial and the quantum losses arising from it is better imagined than been discussed.
Just recently, media report disclosed how Tantita Security Services Nigeria Limited, TSSNL, a private pipeline surveillance company, operated by the ex-militant leader, Government Ekpemupolo, alias Tompolo, in the Niger Delta, saved the nation’s security a total embarrassment when it arrested the infamous ocean-going vessel, MT Tura II caught with illegal 150,000 metric tons of illegal crude oil worth $86.8m.
Rear Admiral Olusegun Ferreira, Commander of Operation Delta Safe was said to have described the arrest as one of the success stories in the ongoing synergy between the military and Tantita security operative, with a promise to further investigate the illegal acts and brings all indicted to justice.
Commanders of Operation DELTA SAFE, South-South Operations, Rear Admiral Olusegun Ferreira, and Nigerian Navy Ship, NNS Delta, Commodore Chindo Yahaya, were onboard the villainous vessel in their full insignia at Oporoza community, Gbaramatu clan, Warri South-West Local Government Area, Delta State, where TSSNL anchored it, after the seizure to brief reporters.
Many are however of the opinion that assurance of thorough investigations like this made no impression on some insiders of the oil industry, familiar with how the oil cabal carries out oil bunkering activities and does everything to buy justice. Both insiders and citizens alike became even more enraged when the heads of the nation’s security decided to set the vessel and its contents ablaze, rather than keep them as exhibits for the prosecution of the suspects.
Report has it that this same MT Tura II arrested by TSSNL operatives on July 7, 2023, is the same as MT ALLI-RIZA BEY, which the NNS Cobra, on July 28, 2013, apprehended while transferring petroleum product suspected to be Automative Gas Oil, AGO, to some smaller boats offshore Escravos.
The MT Alli-Riza Bey said to have allegedly disappeared under questionable circumstances in 2013 after its arrest and now reappeared as MT Tura II is said to have been on this illegal bunkering operations for over 12 years helping to transport stolen crude oil to neighboring countries.
It is against this background that many Nigerians are of the opinion that the crude oil theft is indeed a well organised crime and that is aided by some bad eggs among our security agencies.
Crude Oil sale remains the source of over 90 per cent through which the country get its foreign earnings yet it is the same source of revenue that is being attacked with reckless abandon and the grave consequences are already staring us in the face.
The unavailability of forex has really destabilised our economy and weakened the naira such that dollar now exchange for over N900. The humongous financial resources that is lost to these criminals would have come handy in fixing the rots in our infrastructure, education, health, provide jobs for our teeming populace among others.
It is the strong opinion out there that except President Tinubu is willing to face headlong the corruption and the organised criminals perpetrating this dastardly act, the impunity and the illegal act will continually be strengthened.
Part of what NEITI said had in the time past aided crude oil theft included inadequate legal sanctions to serve as a deterrent to those caught, stringent laws, deployment of technology designed to swiftly detect, localise and cut off flows to specific pipelines as soon as leakages
It further recommended operational, security, legal and global governance instruments to combat crude theft and these include an efficient response and containment time in checking oil theft and pipeline vandalism, an urgent review of the status of various security organizations currently involved in the crude pipeline and product surveillance.
It also demanded a forensic investigation into the activities of syndicates operating in the oil and gas industry, given the increasing rate of stealing and sophistication of the illicit trade.
Tinubu certainly has to roll up his sleeves to end the infamous reign of these saboteurs hurting terribly our economy and making the country lose several billions of dollars that could be better deployed to renew the dying hope of Nigerians.