Daud Olatunji
Nigeria has lost approximately 619 million barrels of oil, valued at $46.16 billion (N16.25 trillion), due to oil theft as of 2022, according to the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Orji Ogbonnaya Orji.
Orji, in an exclusive interview with The ICIR, highlighted that these losses surpass the nation’s entire foreign reserves and are nearly ten times the value of its excess crude account during the reviewed period.
“Oil theft has inflicted significant damage on the oil and gas industry more than any other sector,” Orji stated.
“Nigeria lost about 619 million barrels valued at $46.16 billion or N16.25 trillion. These losses exceed the size of Nigeria’s entire foreign reserves and almost ten times the size of the country’s oil savings account as of 2022.”
He further detailed that NEITI’s audit reports, spanning twelve years, indicate an average daily loss of more than 140,000 barrels of crude oil.
“On average, Nigeria lost $10.7 million daily, $320 million monthly, every year for 12 years between 2009 and 2020. The annual value of crude oil loss is nearly one-fifth of the revenue Nigeria earned from the sector in 2020,” Orji added.
The average annual loss, estimated at N1.77 trillion, represents 135 percent of the total proposed infrastructure spending on works, housing, power, transport, water resources, and aviation for 2023.
Addressing NEITI’s efforts to tackle the issue, Orji mentioned that in 2018, the agency produced a policy brief on crude oil theft and hosted a policy dialogue on the matter.
Furthermore, on December 6, 2022, former President Muhammadu Buhari established a nine-member investigation panel on oil theft and losses, chaired by Major General Barry Ndiomu and coordinated by former National Security Adviser General Mohammed Muogono.
“NEITI was the only anti-corruption agency on the panel, among other esteemed Nigerians chosen for the task.
The panel’s report, which included insightful findings and recommendations, was presented to the former National Security Adviser, Major General Babagana Mungono (Rtd), on March 28, 2023.
The report is current and comprehensive, with specific recommendations on what needs to be done,” Orji noted.
NEITI has since advised President Bola Tinubu to implement the findings and recommendations of the report, citing the severe damage oil theft has caused in terms of revenue loss, environmental impact, terrorism financing, and the overall transparency and accountability in the oil and gas industry.
Regarding the controversial fuel subsidy removal, Orji stated that NEITI’s independent reports have consistently flagged the subsidy regime as lacking transparency and accountability.
“We support the removal of the subsidy due to its huge economic burden, but this must be accompanied by robust, visible, and impactful welfare benefits for the citizens, especially the poor and vulnerable.”
“From our records, over $74.38 billion (N13.69 trillion) has been spent on subsidies between 2005 and 2021. This amount, if directed towards development, could address Nigeria’s energy sector challenges, repair the refineries, or even build new ones, making the country a net exporter of refined petroleum products,” Orji explained.
“In 2022 alone, a staggering N4 trillion was reallocated from health, education, infrastructure investments, and regional development commissions to cover subsidy costs,” he added.
'
'
'
'Do you want to share a story with us? Do you want to advertise with us? Do you need publicity for a product, service, or event? Contact us on WhatsApp +2348183319097 Email: platformtimes@gmail.com
We are committed to impactful investigative journalism for human interest and social justice. Your donation will help us tell more stories. Kindly donate any amount HERE
