N16.25trn Loss To Oil Theft: NEITI Backs Federal Govt On Special Investigative Panel

The Nigeria Extractive Industries Transparency Initiative, (NEITI), yesterday backed the decision of the federal government to set up Special Investigative Panel on Oil Theft and Losses, claiming that the country has lost 619.7 million barrels of crude oil valued at $46.16 billion or N16.25 trillion in twelve years from (2009 to 2020).

NEITI explained in Abuja that the losses were from theft and sabotage based on information and data provided by an average of eight companies covered by NEITI process over the years, a statement by the head, Communications and Advocacy, Obiageli Onuorah, indicated.

A breakdown of the losses shows that in 2009 when NEITI commenced reporting of crude oil theft, Nigeria lost 69.49 million barrels valued at $4.31 billion. The figures for 2010, 2011 and 2012 revealed that 28.31million, 38.61million and 51.58 million barrels which were valued at $2.29billion, $4.39 billion and $5.82 billion were lost respectively.

NEITI stated that its oil and gas industry reports for 2013 to 2020 also showed that the losses to crude oil theft did not abate as 78.30million barrels valued at $8.55 billion was lost in 2013 alone.

It added that 2014 and 2015 witnessed combined losses of 67.29 million barrels valued at $5.57 billion. 2016 recorded the highest losses of 101.05 million barrels that was valued at $4.42 billion.

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Between 2017 & 2020, the NEITI reports indicated losses of 36.46 million barrel ($1.99 billion) in 2017, 53.281 ($3.837 billion) in 2018, 42.248 million barrels ($2.772 billion) in 2019 and 53.056million barrels ($2.21billion) in 2020.

“The combined value of these losses is 619.7 million barrels amounting to $46.16 billion over a twelve year period”, NEITI added.

NEITI lamented that “it was regrettable that at a time Nigeria’s economy is largely dependent on oil revenues, some Nigerians would choose to collude with foreign nationals to steal and sabotage the main sources of revenue for the federation”.

The Agency expressed “delight over the new collaboration between offices of the secretary to the government of the federation and that of the national security adviser in coordinating the investigations and its wisdom to appoint NEITI in this Special Panel. This is in view of the Agency’s strategic relevance to guide the Panel with reliable information and data”.