The House of Representatives has reiterated its resolve to introducing legislative instruments towards halting crude oil theft, which led to loss of over $1 billion revenue.
Deputy Speaker, Hon. Benjamin Kalu, gave the assurance during the presentation of the report of the Ad-hoc Committee on the need to investigate Crude Oil theft and loss of revenue accrued from the Oil and Gas sector at the end of the week’s legislative activities.
The motion was referred to the Ad-hoc Committee chaired by Hon. Kabiru Rurum, following the adoption of a motion sponsored by Hon. Phillip Agbese.
The Deputy Speaker stated that oil theft accounts for the loss of over $1 billion which represents a huge percentage of national budget.
He lamented that the scourge of oil theft impedes government’s ability to carry out critical projects for Nigeria’s prosperity.
Hon. Kalu also observed that the menace also reduces the confidence of investments in the Oil and Gas sector and hinders the ability of government to procure loans from Development Partners for expenditure on critical developmental projects.
While frowning at the unabated reports on oil theft, Hon. Kalu vowed that the 10th Assembly’s will do all within its powers to support all relevant Ministries, Departments and Agencies (MDAs) of government saddled to ensure the halting of this economic sabotage do their job.
Recall that the sponsor of the motion, Hon. Agbese expressed grave concern over reports which revealed that in 2021 alone, Nigeria lost $4 billion to oil theft at the rate of 200,000 barrels per day.
While noting that the figures have risen since then, he decried the allegation that security agencies of the Federal Government are allegedly complicit and largely responsible for facilitating most of the oil theft in the Niger Delta.
According to him, Nigerian military had been accused several times of being behind 99 percent of oil theft and despite promises to conduct proper investigations, no substantial action has been taken by the Federal Government to address the matters raised;
“The House is disturbed about a 2022 report by the Nigerian Extractive Industry Transparency Initiative ( NEITI) that about 619.7 million barrels of crude oil , valued at $46.16 billion have been stolen in the last 12 years, while stakeholders have often described crude oil theft in the country as an organized crime perpetrated by the Nigerian elite.
“In spite of the huge funds appropriated to adequately equip Nigeria’s security and intelligence agencies, their performance in terms of curbing oil theft has been abysmal.
“Despite the enormous resources at the disposal of the NNPC Ltd and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), they have, in active connivance with national and multinational oil and gas companies, allegedly continued to sabotage every effort to ensure an effective running of metering facilities at the well heads, flow stations, loading platforms.
“If crude oil theft is allowed to go on unhindered, it will result in, not only devastating consequences to the country’s economy, but it will also gravely impact the environment, health and social life of the Host Communities.
“The House is determined to reform the oil and gas sector and ensure that crude oil theft is effectively curbed in order to arrest the attendant huge losses to the economy,” Hon. Agbese noted.
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