In eleven years, Nigeria lost N16.25 trillion to crude oil theft – Abass: Tajudeen Abbas, the Speaker of the House of Representatives of Nigeria, stated that the country lost approximately N16.25 trillion to Crude Oil smuggling between 2009 and 2020.

Abbas made the remark in Abuja while establishing a special committee to investigate crude oil fraud and revenue loss. According to him, Nigeria is losing between five and thirty percent of its daily crude oil production due to the scourge of Crude Oil Theft, which has impeded the country’s oil production growth significantly.

The speaker expressed astonishment that critical oil and gas sector agencies had declined the committee’s invitation, adding that the agencies were doing the nation no favours by refusing to appear before the legislature to address questions on the crucial economic aspect.

He stated that if decisive action was not taken to address the problem, the country could be plunged into a deeper fiscal crisis due to declining oil and gas revenues.

Abbas stated that Nigeria’s oil production fell from 2.51 million barrels per day in 2005 to 1.77 million barrels per day in 2020, citing information from the Nigeria Extractive Industries Transparency Initiative (NEITI).

“NEITI reports also indicate that 619 million barrels of crude oil worth $46 billion were stolen between 2009 and 2020,” he said, adding that “Nigeria has persistently failed to meet its daily production quota as determined by the Organisation of the Petroleum Exporting Countries”

Abbas elaborated, “Recently, Nigeria’s OPEC quota was decreased from 1,742 million to 1,38 million barrels per day.”Nonetheless, the nation continues to struggle to achieve this quota, as daily production output was 1.184 million barrels per day in May 2023 and 1.24 million barrels per day in June 2023.

“The average daily production output is significantly lower than the budgeted amount of 1.69 million per day,” The implication is evident in the nation’s current economic crisis.”

Several task forces, special committees, and investigative panels were established by previous administrations to combat the scourge of crude Oil Theft, according to the speaker, each of which produced a wide range of findings and recommendations.

He stated, “NEITI provides annual updates on the quantity of crude oil lost or stolen due to sabotage.” Despite the enormous resources already devoted to combating this problem, oil theft has persisted unabated.

The chairman of the committee, Alhassa Usman Rumrum, stated that the magnitude of losses caused by oil theft in the country and the resulting impact on the economy were inexcusable and could not be tolerated by any government that truly loved its citizens.

He stated, “The daily occurrence of this act of sabotage and violation of our national security and sovereignty makes a mockery of our national pride and the acclaimed status of our armed forces.”

“It is an affront to the government and its institutions that must be addressed immediately.

“In light of these facts, the House formed this committee and is determined to put an end to this repugnant trend. Otherwise, our remaining children who have not yet fled to other countries in quest of survival may have no future.”

Rumrum stated that the perpetrators should be delivered over to the Nigerian police for effective prosecution.

Mr. Alabi Abiodun, a police representative, stated that the police had established a task force to assist other security agencies in apprehending those responsible for attacking oil facilities.

He stated that the police were devoted to collaborating with the committee to combat oil theft.

Six weeks have been allotted for the committee to submit its report.

The post In eleven years, Nigeria lost N16.25 trillion to crude oil theft – Abass appeared first on Financial Watch.