Large scale crude oil theft in Nigeria threatens our economy- Prof. Yemi Osinbajo

Oredola Adeola

The Nigerian Vice President, Professor Yemi Osinbajo has disclosed that there is a large scale of oil theft in Nigeria, warning that the scourge poses a danger and a threat to the country’s economy.

VP Osinbajo made this known in his keynote address at Nigeria Extractive Industries Transparency Initiative (NEITI), stakeholders conference on oil theft and losses in Nigeria, in Abuja, on Tuesday.

Speaking on the theme: “Protecting Petroleum Industry Assets for Improved Economy,” Prof. Osinbajo said extensive discussion and appropriate recommendations on the subject matter is needed to end the economic loss.

He said, “NEITI puts the audited figures of oil theft and losses at $619.7 million barrels of crude oil daily. And this is valued at over $46 billion or N16.2 5 trillion and all of these losses occurred between 2010 and 2020.

“In addition, Nigeria lost about 4.2 billion litres of petroleum products from refineries, which are valued at over $1.84billion dollars at the rate of 140 1000 barrels per day, from 2019 to 2018. This is just an average because there are peaks.

“Oil theft and sabotage of oil and gas assets are dangerous to our economy and national security. Oil and gas resources account for about 80% of the government’s foreign exchange earnings and contribute about 6% of our country’s GDP, while the audited figures of revenue losses due to oil theft amounts to N16.25 trillion between 2009 and 2020.

“In combating this, we have had significant investments in scaling up our maritime security architecture, discouraged illegal artisanal refining by licensing modular refineries, enacted the Petroleum Industry Act of 2021, where host communities stand to gain immensely from sustained production.

Professor Osinbajo also noted that the government is committed to securing oil and gas facilities and other critical national assets, as well as improving the welfare of the host communities. According to him, the prosperity of our great country is of paramount importance and Nigerian citizens must rest assured, knowing that the government is doing all that it can to sustain prosperity, peace and progress.

Major Gen.Babagana Monguno Rtd, National Security Adviser, in his remark at the conference said that addressing crude oil theft requires strong inter agency collaboration with relevant stakeholders such as security, Nigerian National Petroleum Company Limited(NNPCL), Intl oil companies and the local community.