The Nigerian Senate has passed a resolution to investigate the issue of crude oil theft in the Niger Delta region.
This decision follows the adoption of a motion during a plenary session titled 'Urgent need to investigate incessant and nefarious acts of crude oil thefts in the Niger Delta region.'
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Senate set to probe Oil Theft. Photo: The Guardian[/caption]
The Senate has assigned its committees on Petroleum Resources (both Upstream and Downstream), Gas, Host Communities, and Niger Delta to carry out the investigation into oil theft in the region.
The specific focus of the investigation is to look into the actions of various stakeholders, including security forces, militia groups, local residents, company employees, and any individuals or entities suspected of using sophisticated methods to steal oil from facilities within the country.
The motion for this investigation was sponsored by Ned Nwoko, a member of the PDP representing Delta State, and co-sponsored by SeEde Dafinone and J. Thomas.
Nwoko highlighted the critical role that the oil sector plays in Nigeria's economy, citing statistics from the National Bureau of Statistics (NBS) that showed the oil sector contributed significantly to the nation's GDP.
He emphasized that the oil sector provides employment opportunities for millions of Nigerians, funds a substantial portion of the government's budget, and contributes significantly to government revenue.
However, he also noted that pipeline vandalism and oil bunkering have caused significant socio-economic challenges in Nigeria.
Nwoko acknowledged the collaborative efforts, including joint task forces with military involvement, security entities, state and local governments, and International Oil Companies (IOCs), which have been deployed in the Niger Delta region to address these issues and have yielded positive results.
The Senate's decision to investigate crude oil theft in the Niger Delta reflects the ongoing concern over this problem and the desire to address it comprehensively to protect Nigeria's vital oil industry and its impact on the nation's economy,
Premium Times reports.
He said the efforts have led to an increase in oil production, reaching 1.51 million barrels per day in the first quarter of 2023.
“This figure marks an improvement from the 1.49 million barrels per day recorded in the same quarter of 2022 and is notably higher than the production volume of 1.34 million barrels per day in the fourth quarter of 2022″ the senator said.
But Mr Nwoko said in spite of efforts of military personnel and security agencies in combating oil theft in the Niger Delta region, individuals within the institutions still engaged in illicit activities.
“These individuals collaborate with unscrupulous figures within the oil industry to undermine the nation’s economy.
“Also observes that it has come to attention that oil theft in Nigeria thrives due to a troubling collaboration between security forces, militia groups, the local population, and certain employees within oil companies.
“These parties employ sophisticated methods to carry out theft from all facilities located within the country given Nigeria’s vast oil and gas reserves,” he said.
He expressed concerns about accusations and counter-accusations of oil bunkering and various other crises between the military and local militia groups.
“In 2022, it was reported that Nigeria suffered daily loss of approximately 437,000 barrels of crude oil, amounting to a value of 23 million dollars, due to criminal activities.
“Moreover, between March 2023, Nigeria incurred a substantial loss of 65.7 million barrels of crude oil, valued at 83 dollars per barrel, translating to a staggering revenue loss of N2.3 trillion as a result of oil theft.”
He expressed worry that the activities of oil thieves and their collaborators have significantly hampered crude oil production, posing a substantial threat to the nation’s economy.
Contributing, Mpigi Barinada (PDP- Rivers) called for a proper check on issues of oil thefts in the Niger Delta, adding that there was a challenge of collaboration among security agencies.
Osita Izunaso (APC- Imo) said oil bunkering was a major economic sabotage for Nigeria, saying that it was a multifaceted issue.
He said the solution required sustainable measures and not on an ad-hoc basis.
Buhari Abdulfatah called for a review of the laws to provide for punitive measures for would-be offenders.
Adams Oshiomole (APC-Edo) urged the Senate to support President Tinubu in the fight against oil thieves, saying that it was time to stop oil thefts in Nigeria.
He said it was shameful that so much had been stolen from oil, and urged the senate to invite the service chiefs to interface with the senate on what the security agencies were doing to stop oil thefts.
President of the Senate, Godswill Akpiabio, said he believes strongly that the armed forces were in a better position to secure the country.
He thanked the sponsor of the motion while urging the committee to do a holistic investigation in the interest of the nation.
Senate consequently urged the committee to present its report on the investigation in six weeks.
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