Oil bunkering and theft have lasted for more than 53 years, with the scourge said to have been in existence since 1970, a few years after oil discovery.
Oil theft in Nigeria is causing heavy havoc to the environment and the soil. It has affected communities and their means of livelihoods.
Government, communities and international companies have kept blaming themselves but the poor in the villages keep suffering from environmental degradation.
It seems oil theft is a high-level collaboration with highly placed individuals, government officials and multinational companies.
Vessels are protected under heavy security with the crude oil products being freight to other countries without proper accounts.
The Senate has commenced investigation into the activities of oil thieves in Nigeria, describing the 53-year-old menace as vicious.
To this end, the Senate has mandated its committees on Petroleum Resources (Upstream, downstream), Gas, host communities and the Niger Delta to conduct thorough investigations on oil thefts in the country.
The Senate specifically mandated the committees to investigate the actions of security forces, militia groups, local populace, all company employees, and any individuals or entities suspected to be using sophisticated methods to pilfer from oil facilities within the country.
This followed a motion sponsored by Ned Nwoko (Delta North) on the urgent need to investigate the incessant and nefarious acts of crude oil thefts in the Niger Delta region.
The motion was co-sponsored by Sen Ede Dafinone and Sen Joel Thomas.
Nwoko, in his lead debate said that Nigeria was largely dependent on crude oil for its economic growth and development.
He said the National Bureau of Statistics (NBS) reported that the oil sector contributed 6.33 per cent of the nation’s GDP which translated to 45.6 billion dollars in 2022.
He said the oil sector in Nigeria plays a pivotal role in providing employment opportunities for millions of Nigerian citizens accounting for 70 per cent of its budget financing, while oil and gas made up 90 percent of export and 85 percent of government revenue in the first quarter of 2022.
“Statistical data which has been reported over the years, indicated that pipeline vandalism, oil bunkering, has brought Nigeria into serious socio-economic crisis,” Nwoko said adding that the current collaborative efforts involving a joint task force of the military, with contributions of various security entities, state and local governments, and international oil companies (IOC) in the Niger Delta region has yielded positive results.
He said the efforts have led to an increase in oil production, reaching 1.51 million barrels per day in the first quarter of 2023.
“This figure marks an improvement from the 1.49 million barrels per day recorded in the same quarter of 2022 and is notably higher than the production volume of 1.34 million barrels per day in the fourth quarter of 2022.”
Nwoko said despite efforts of military personnel and security agencies in combating oil theft in the Niger Delta region, he, however, alleged of individuals within the institutions who engage in illicit activities.
“These individuals collaborate with unscrupulous figures within the oil industry to undermine the nation’s economy.
“Also observes that it has come to attention that oil theft in Nigeria thrives due to a troubling collaboration between security forces, militia groups, the local population, and certain employees within oil companies.
“These parties employ sophisticated methods to carry out theft from all facilities located within the country given Nigeria’s vast oil and gas reserves.”
He expressed concern of alleged accusations and counter-accusations of oil bunkering and various other crises between the military and local militia groups.
“In 2022, it was reported that Nigeria suffered a daily loss of approximately 437,000 barrels of crude oil, amounting to a value of 23 million dollars, due to criminal activities.
“Moreover, from March 2023, Nigeria incurred a substantial loss of 65.7 million barrels of crude oil, valued at 83 dollars per barrel, translating to a staggering revenue loss of N2.3 trillion as a result of oil theft.”
He expressed worry that the activities of oil thieves and their collaborators has significantly hampered crude oil production posing a substantial threat to the nation’s economy.
Contributing, Sen Mpigi Barinada (PDP- Rivers) called for proper check on issues of oil thefts in Niger Delta, adding that there was a challenge of collaboration among security agencies.
Sen Osita Izunaso (APC- Imo) said oil bunkering was a major economic sabotage for Nigeria, saying that it was a multifaceted issue.
He said the solution required sustainable measures and not an ad-hoc basis.
Sen Buhari Abdulfatah called for a review of the laws to provide punitive measures for would-be offenders.
Sen Adams Oshiomole (APC-Edo) urged the Senate to support President Tinubu in the fight against oil thieves, saying that it was time to stop oil thefts in Nigeria.
He said it was shameful that so much has been stolen from oil.
He urged the senate to invite the service chiefs to interface with the Senate on what the security agencies were doing to stop oil thefts.
The President of the Senate, Godswill Akpiabio said he believes strongly that the Armed Forces were in a better position to secure the country.
Akpabio who thanked the sponsor of the motion, urged the committee to do a holistic investigation in the interest of the nation, said even if it means tinkering with the 2022 Petroleum Industry Act (PIA) they will do that to restore sanity.
Though the Senate is expected its committee to present its report on the investigation in six weeks, the sponsor of the motion, Nwoko, who was the brain behind the return of the Paris Club funds to Nigeria, said he is going to carry out the same sacrifice just to ensure that the oil and gas industry is sanitise in Nigeria.
According to Nwoko, not only that, he is going to pursue for reparations in the oil and gas industry immediately after the Senate concludes its investigation.
Nwoko told LEADERSHIP Weekend that so much has been stolen adding that once such is established in the Senate report, there must be a refund to Nigeria.
“We will also look at the agreements signed with the multinational oil companies whether such agreements need a review. So much has been taken away from the country.
“The oil and gas sector is shrouded in secrecy while Nigerians are suffering in the midst of plenty. There must be sanity,” Nwoko said, insisting on pursuing justice in the Nigeria oil sector.
