Nigeria is losing about US $20.4bn annually to oil theft. This is according to the Speaker of the House of Representatives, Hon Femi Gbajabiamila, who says the country loses around 400,000 barrels of oil per day which amounts to US $20.4bn in a year.
Speaking at a public investigative hearing on oil theft, the Speaker described the practice as “the worst form of economic sabotage for which there can be no excuse”. “Oil theft and the attendant damage to oil and gas assets across the country destroys the environment, puts the lives of our citizens at risk and undercuts government revenue and compromises government’s ability to meet our nation’s developmental challenges. It is the worst kind of economic sabotage for which there is no viable defence or excuse. Those who engage in these acts of sabotage do so with the full awareness that their actions are inimical to the continued viability of the Nigerian state, yet they persist,” he said.
He further added that, the persistence of this nefarious conduct must motivate the rest of the citizens who bear the consequences of these actions to act in unison to identify those responsible and ensure that they are fully held accountable as allowed by law. “However, beyond that, we have a responsibility to conduct a more holistic assessment to understand whatever underlying factors have caused this action to continue and the perpetrators to continue to benefit therefrom,” said Mr. Gbajabiamila.
However, the Nigeria National Petroleum Corporation (NNPC) and the Office of the Accountant-General of the Federation have reported that there was no record of the quantity of oil lost daily to crude theft. Nevertheless, the NNPC alleged that oil theft was caused by criminality and historic neglect of the host communities.