Poor Metering System, Insecurity Escalate Oil Theft – Report

The special investigative panel on oil theft and losses in Nigeria has submitted its report to the national security adviser (NSA), Maj.-Gen. Babagana Monguno (rtd).

The panel attributed oil losses to the absence of a robust industry-wide metering system and an unworkable security arrangement in the sector. 

According to a statement signed by Mr Zakari Usman, Head, Strategic Communication, Office of the National Security Adviser (ONSA), the chairman of the investigative panel, Maj.-Gen. Barry Ndiomu, (retired) called for quick implementation of the report, adding that if the government implements the recommendations in the report, oil theft/losses would be adequately addressed.

Ndiomu said prompt implementation of the report would not only create an immediate impact on crude oil production levels to meet OPEC’s quota but would also attract foreign direct investment and serve Nigeria’s economic and national security concerns.

The statement made available to journalists on Tuesday in Abuja, said the panel engaged key stakeholders both within and outside the oil and gas industry, including state governments; ministries, departments and agencies; security agencies; regulatory agencies; international and indigenous oil companies; traditional institutions; host communities; artisanal refiners; among others. 

The NSA inaugurated the investigative panel on December 6, 2022, and was given 10 weeks to complete the assignment with extensive terms of reference to investigate all aspects of crude oil theft/losses in all its ramifications.

The statement also noted that the panel in discharging its responsibility received and reviewed several memoranda and reports on oil theft and losses.

The statement added that the panel during the assignment, “discovered several layers of involvement in the illegal theft of crude oil despite the best efforts of the Armed Forces and other security agencies to combat the activities of the oil thieves.

“The panel also observed that crude oil losses arose from a lack of proper reporting of crude oil production; illegal refining; theft from wellheads; and diversion from sophisticated pipelines networks. 

The panel also attributed losses to the absence of a robust industry-wide metering system; and an unworkable security arrangement. 

The confusing roles of regulatory agencies was also cited as being responsible for making the detection of theft/losses difficult”.

Monguno who received the report thanked the panel for keeping to the timeframe and for addressing the issues of oil theft and losses comprehensively. 

He assured that the government would study the report and see to its immediate implementation, especially the recommendations with short-term perspectives.