Experts Advocate Digitalisation To Curb Oil Theft

Experts have warned that unless Nigeria urgently digitalises its oil sector with specialised metering systems, resources will continue to be misappropriated, enriching a few while depriving the broader population.

At a leadership forum in Houston, Texas, Engr. Charles Deigh and Dr Oluwatoyin Joseph Gbadeyan maintained that every barrel of oil should represent national prosperity.

“This is not just unfortunate—it is unacceptable. Nigeria cannot afford to let another barrel go to waste. We need bold, transformative action,” they declared.

According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), crude losses have dropped from $7 million per day in 2021 to about $700,000 daily in 2025.

According to them, initiatives such as the Nigeria Upstream Measurement System (NUMS), the Automated Hydrocarbon Accounting System (AHAS), and provisions in the Petroleum Industry Act (PIA) mandating metering technologies are helping.

Deigh emphasised that Saudi Aramco’s success in cutting losses through a comprehensive digital monitoring system within four years shows what full implementation could achieve in Nigeria.

The experts stress that without enforcement, these initiatives risk becoming symbolic. “Manual reporting and weak accountability have enabled oil theft to thrive openly, as regulators lack real-time oversight.”

They called for immediately deploying Internet of Things (IoT) sensors, drones, satellites, blockchain tracking, artificial intelligence, and automated metering across Nigeria’s oil infrastructure to close the gaps.

“Technology alone will not solve the problem; the government must move beyond policy to action, ensuring digital oversight is not just written into the PIA but rigorously enforced, with real consequences for non-compliance,” Deigh and Gbadeyan stressed.

They further urged oil companies to abandon temporary fixes and invest in durable monitoring systems, while host communities must embrace transparency as a pathway to shared prosperity. Oil theft and inefficiency, they warned, are not inevitable but the result of neglect and inaction.

“As crude oil remains central to Nigeria’s economy, failure to act decisively will perpetuate losses and erode national wealth. By contrast, urgent digitalisation could power growth, stability, and economic diversification.”

They urged the federal government to set a firm milestone for achieving full digital coverage of its oil infrastructure by December 2025.

“Such a deadline would provide direction and turn strategies into measurable results. The flames of wasted oil wealth have burned for too long. It is time to extinguish them with innovation, strong laws, advanced technology, and political courage. The future of Nigeria depends on it.”