NIGERIA has lost about 619 barrels valued at $46.16 billion (N16.25trillion) from oil theft as of 2022, the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), has revealed.
The NEITI boss, Orji Ogbonaya Orji, who made this known during an exclusive interview with The ICIR said the losses account for more than the size of the country’s entire foreign reserves and almost 10 times the size of her oil savings(excess crude) account within the period in review.
According to him, NEITI’s audit reports covering a period of twelve years, show that Nigeria loses an average of more than 140,000 barrels of crude oil per day.
“You see, oil theft has done more damage to the oil and gas industry more than any other sector. Nigeria lost about 619 million barrels valued at $46.16 billion or N16.25 trillion. The losses are more than the size of Nigeria’s entire foreign reserves and almost 10 times the size of the country’s oil savings (excess rude) account as of 2022.
“A further analysis shows that on the average, Nigeria lost $10.7 million daily, $320 million monthly every year for 12 years between 2009 and 2020. The average yearly value of crude oil loss is nearly one-fifth of the amount Nigeria earned from the sector in 2020, Orji said.
According to him, the average annual loss (N1.77 trillion) represents 135 per cent of the total proposed infrastructure spending on works, housing, power, transport water resources and aviation for 2023.
On NEITI’s role in addressing the situation Orji said in 2018 the agency produced a policy brief on crude oil theft and held a policy dialogue on the issue.
He said on December 6, 2022, ex-President Muhammadu Buhari set up a nine-member panel of investigation on oil theft and losses chaired by a major general, Barry Ndiomu and coordinated by the former National Security Adviser, a general, Mohammed Muogono.
“NEITI was the only anti-corruption agency to serve on the panel among other reputable Nigerians carefully selected for the assignment. The panel’s report with insightful findings and recommendations was presented to the former National Security Adviser (NSA), Major General Babagana Mungono (Rtd), on March 28, 2023. The Report is current, comprehensive in content with specifics on what needs to be done.
“NEITI has since in its policy advisory to President Tinubu requested the implementation of the findings and recommendations of that report. Our legitimate interest in the report is in view of the terrible damage oil theft has done to the country on revenues loss, environment, terrorism financing, stealing of Nigeria’s crude, transparency and accountability in the oil and gas industry.”
Fuel subsidy removal
Speaking on NEITI’s position on fuel subsidy removal that has thrown Nigerians into untold economic hardship he said the agency’s independent industry reports over the years had consistently raised red flags that the management of the fuel subsidy regime was anything but open, transparent and accountable and advocated its removal.
“From our records, we support the removal of the subsidy as a result of the huge burden it has imposed on the economy over the years but with robust visible and impactful welfare benefits for the citizens, the poor and vulnerable in society.
“Our position remains remove and replace with welfare programmes-based revenues that will be freed from subsidy removal. Other measures we recommended include deliberate policy incentives to encourage private investment in refineries, repair of Nigeria’s four refineries.
“Data from NEITI reports show that over about $74.38 billion (N13.69 trillion) has been expended in the payment of subsidy between 2005 -2021. NEITI’s frustration is in the amount of money spent on subsidy. This amount if available for development was more than enough to address Nigeria’s energy/power sector challenges, repair the refineries, or even build brand new ones to make the country a net exporter of refined petroleum products.
“For instance, in order to accommodate the increase in subsidy expenditure a whopping sum of N4 trillion appropriated in year 2022 budget was suddenly slashed from the budgets of health, education, planned investment in infrastructure, intervention budgets in the Niger Delta and from the North-East development commissions budgets to pay for subsidy,” he said.
Fidelis Mac-Leva is the Deputy Editor of The ICIR/Head of Investigation. He has previously worked with several media outfits in Nigeria, including DAILY TIMES and DAILY TRUST. A compellingly readable Features writer, his forte is Public Interest Journalism which enables him to "comfort the afflicted and afflict the comforted..." He can be reached via fmacleva@icirnigeria.org, @FidelisLeva on X