The House of Representatives Special Committee on Oil Theft and Losses on Thursday, began investigation into illegal lifting of crude oil in Nigeria in order to address root causes of the challenges facing the sector.
The Special Committee, chaired by the member representing Doguwa.Tudun Wada Federal Constituency, Kano State, Alhassan Ado-Doguwa was declared open by the Speaker, Tajudeen Abbas, the Chief of Defence Staff, Chief of Army Staff, Chief of Air Staff, and Inspector General of Police, who were all represented by top-rank officers, accompanied by men drawn from the military formations.
The Committees mandate is also to investigate oil theft and the actions of criminal gangs, militia groups, local communities, companies and security agencies.
Speaking at the event, Abbas, represented by the Deputy Speaker, Benjamin Kalu lamented the negative impact oil theft is having on the nation’s economy, even as he decried the daily losses of crude due to the activities of criminals.
He said, “The statistics on crude oil theft are very alarming, and its negative impact on the economy is quite monumental. For instance, it is estimated that between January and July 2024, Nigeria lost an average of 437,000 barrels of crude oil per day due to theft, vandalism and other criminal activities. At the current price of oil, this translates to over $10bn over the same period.
“Apart from reduced government revenue to address the multi-faceted challenges of national development, other problems associated with crude oil theft include environmental degradation, heightened insecurity in the form of piracy, kidnapping, militancy and vandalism and the shut-down of production by many companies, among others.
“The reduction in government revenue has invariably been responsible for government borrowing to address budget deficits over the years.”
He identified corruption as one of the factors working against sustainable development in the oil sector and pledged the readiness of the parliament to assist anti-graft agencies to rid the sector of various economic crimes.
“We are determined to strengthen the Economic and Financial Crimes Commission, the Nigeria Extractive Industries Transparency Initiative and other anti-corruption agencies to frontally combat corruption in the oil and gas sector,” he assured.
Also speaking, the Secretary to the Government of the Federation, George Akume reiterated the commitment of the Federal Government to secure the nation’s oil and gas infrastructure, noting that in the past four years, over $1.5bn has been spent in this regard.
Represented by the Permanent Secretary, General Services, Office of the SGF, Maurice Nnamdi, Mr Akume said, “The government has invested considerable resources in combating this menace.
“Since 2020, expenditure aimed at addressing crude oil theft and securing our oil infrastructure has exceeded $1.5bn. These funds have been allocated towards enhancing surveillance capabilities, securing pipelines, and increasing the presence of law enforcement agencies in critical oil-producing areas.”
On his part, Ado-Doguwa promised on behalf of the committee to do a good job in the interest of Nigerians.
He said, “Our ultimate aim is to employ every legislative tool to unearth the root causes and immediate factors contributing to this crime, bring those complicit to justice and develop sustainable solutions that will safeguard the integrity of our oil sector and promote national development.
“To ensure a thorough investigation, our methodology includes inviting memoranda and presentations from key stakeholders within the oil industry and security sector and engaging in further discussions with international and local oil companies, host community leaders, and relevant agencies.”
He highlighted some challenges to be addressed saying, “Our committee has noted several critical issues, including vessels transporting stolen crude oil undetected, collaboration among government and security agencies in illicit activities and the inefficiencies of current measures to combat oil theft.
“We have identified that firepower and other weapons of engagement are inadequate compared to the number of security operatives drafted to combat armed crude oil thieves. The NNPC Ltd. has reported 900 infractions on its pipelines, and delayed judicial processes have resulted in the abandonment of cases, allowing culprits to return to their criminal activities.
“In light of these findings, our committee has resolved to enact adequate legislation, including budget allocations to support security agencies, improve existing laws to combat crude oil theft and collaborate with security agencies to prioritise the protection of national assets and critical infrastructure.
“We also emphasise the importance of involving Indigenous youths in ownership initiatives and converting seized refineries for legitimate use rather than destroying them.”
Meanwhile, the immediate past Deputy Speaker, Idris Wase has urged Ado-Doguwa to brace up for what will come his way, noting that the oil thieves will come after him.
Giving his remarks at the event, Wase reminded the Kano lawmaker that his job is a dangerous one.
“Mr Chairman, “You are involved in doing a very dangerous business. It is more than dangerous. Don’t take it lightly. It is not going to be easy for you and the committee members because you are going to face people who are sabotaging Nigeria’s economy.
“In other climes, these people are supposed to be on the gallows and face the death penalty. They will go after you; they will come after your life but God will shield you. He will protect you,” he prayed.
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