The House of Representatives has said that the House is determined to reform the oil and gas sector and ensure that crude oil theft which led to loss of over $1 billion revenue is effectively curbed.
Deputy Speaker, Hon. Benjamin Kalu, disclosed this 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 said that oil theft accounts for the loss of over $1 billion which represents a huge percentage of national budget.
He bemoaned that the scourge of oil theft hinders government’s ability to carry out critical projects for Nigeria’s prosperity.
Hon. Kalu also noted that the menace also reduces the confidence of investments in the Oil and Gas sector and cripples the ability of government to procure loans from Development Partners for expenditure on critical developmental projects.
Criticizing the unabated reports on oil theft, Hon. Kalu assured that the 10th Assembly’s will do all within its powers to support all relevant Ministries, Departments and Agencies of government saddled to ensure the halting of this economic sabotage do their job.
The sponsor of the motion, Hon. Agbese raised concerns 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 stating that the figures have risen since then, he regretted 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.
He said 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 said.
