The House of Representatives has resolved to investigate crude oil theft and loss of revenue accruable from the oil and gas sector in the country.
The resolution followed the adoption of a motion sponsored by Philip Agbese (APC, Benue) at plenary yesterday.
Moving the motion, Agbese expressed worry that in 2022 report by the Nigerian Extractive Industry Transparency Initiative ( NEITI) that about 619.7 million barrels of crude oil, valued at $46.16billion have been stolen in the last 12 years.
Similarly, the House of Representatives has resolved to investigate alleged fictitious contract awards, gross mismanagement of Billions of Naira and lopsided placement of directors by the Nigerian Mạritime Administration And Safety Agency (NIMASA).
This was sequel to the adoption of a motion moved by Minority Leader, Rt. Hon. Kingsley Chinda,
Hon. Victor Ogbuzor and three others at plenary yesterday.
Agbese said: “About 40 per cent of crude oil loss is due to inaccuracies in measurement and theft as metering errors continue to occur as a result of poor maintenance of metering facilities, thus resulting to lack of transparency in hydrocarbon accounting.”
The lawmakers expressed concern about reports which revealed that in 2021 alone, Nigeria lost $4 billion to oil theft at the rate of 200,000 barrels per day, and the figures have risen since then.
“Also concerned that security agencies of the federal government are allegedly complicit and largely responsible for facilitating most of the oil theft in the Niger Delta.
“Further concerned that the Nigerian military has been accused several times of being behind 99 percent of oil theft and despite promises to conduct proper investigations, no substantial action has been taken by the federal government to address the matters raised.
“Also disturbed that in spite of the huge funds appropriated to adequately equip Nigeria’s security and intelligence agencies, their performance in terms of curbing oil theft has been abysmal.
“Further disturbed that despite the enormous resources at the disposal of the NNPC Limited and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), they have, in active connivance with national and multinational oil and gas companies, allegedly continued to sabotage every effort to ensure an effective running of metering facilities at the well heads, flow stations, loading platforms.
“Worried that if crude oil theft is allowed to go on unhindered, it will result in, not only devastating
consequences to the country’s economy, but it will also gravely impact the environment, health and social life of the host communities,” he said.
Adopting the motion, the House agreed to constitute an Ad-hoc Committee to carry out the investigation and report back within four weeks for further legislative action.
Moving the motion, Chinda said there have been several allegations of questionable, inflated and fictitious contract awards particularly for non-operational speed boats, security surveillance contracts and Deep Blue Water Contract, revenue leakages and the award of contracts to cronies of the Director-General and other top management staff of NIMASA.
The lawmaker expressed concern about alleged under-remittance of debts owed the country by Shipping firms, with the consent and connivance of the agency.
He said: “The agency is alleged to have entered into a very dubious contract with a firm known as XPO Marine Limited’ for the lease of six (6) speed boats, each at the rate of $173,930.00 monthly, without a Need Assessment for such facility being carried out by the relevant departments of the
agency, the said XPO Marine Limited had earlier been indicted for defrauding the agency to the tune of $80,000 in revenue.
“The security surveillance contract called Deep Blue Water Contract’ is suspected to be a conduit by the management of the agency to pilfer funds. A security contract tagged National Integrated Surveillance and Waterways Protection’ is also said to have been awarded to an Israeli firm, HSLI Systems and Technologies Limited at the cost of $195,300,000.00, despite an existing facility, which is a simple internet subscription via Lloyds Intelligence Platform for such operations.
“The agency is also said to have an existing surveillance system (called Lloyd’s list Intelligence) for tracking the movement of vessels on Nigeria’s Exclusive Economic Zone (EEZ).
“There is evidence that the agency’s legal department counseled against the consummation of the contract on grounds of some fraudulent claims in the agreement, but same was not heeded to.”
Chinda added that there were other allegations such as abuse of office and lopsided appointment and placement of Directors of the Agency in favour of some interests to the detriment of others and in breach of S. 14(3) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), as well as other unwholesome practices within the Agency.
He expressed concern that these allegations are of grave nature to be swept under the carpet or dismissed with a wave of the hand, particularly as they relate to economic losses on the part of the government.
Adopting the motion, the House resolved to set up an Ad-hoc Committee to investigate the allegations and report back within three months for further legislative action.
