Senate Panel Submits Interim Report, Says Over $300bn Lost To Oil Theft

The Senate on Wednesday received the interim report of its Ad Hoc Committee investigating the incessant and nefarious acts of crude oil theft and related sabotage in the Niger Delta region, with findings indicating that Nigeria may have lost over $300 billion in unaccounted crude oil proceeds.

Presenting the report, the Chairman of the Committee, Senator Ned Nwoko (Delta North), said the findings so far exposed systemic irregularities, poor measurement standards, and weak enforcement in the oil and gas sector.

According to him, the interim report — which runs into about 40 pages — recommends several measures to tackle crude oil theft, strengthen accountability, and recover lost revenues.

“We are proposing to go straight to the recommendations as the full report is voluminous,” Nwoko told the Senate. “The committee, after extensive assessment, recommends that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) should strictly enforce internationally accepted crude oil measurement standards at all production sites and export terminals.”

The report further urged the Federal Government to equip security agencies with modern surveillance technology, including unmanned aerial vehicles (UAVs), to combat oil theft, as well as to establish a Maritime Trust Fund to enhance maritime infrastructure and safety.

Other recommendations include the establishment of special courts to prosecute crude oil thieves, full implementation of the Host Communities Development Trust Fund under the Petroleum Industry Act (PIA), and the handover of abandoned wells to the NUPRC for proper management and utilization.

The committee also proposed that it be empowered to “track, trace, and recover” all stolen crude oil and its proceeds, locally and internationally — a recommendation that immediately sparked debate among lawmakers.

Senator Abdul Ningi (Bauchi Central) described the report as “detailed and commendable,” but argued that the committee’s mandate should not include direct recovery of stolen funds.

“We can track and trace, but recovery is beyond the powers of the Senate. The committee should specify losses, locations, and report back for referral to agencies such as the EFCC or ICPC,” he said.

Ningi noted that consultant reports cited in the document revealed crude oil revenue shortfalls of $81 billion between 2016 and 2017, in addition to $200 billion in unaccounted proceeds from 2015 to date.

Senate’s   Appropriations Committee  Chairman Senator Solomon Adeola supported Ningi’s position, saying the recovery process must be handled by the executive arm.

“The committee should provide more details — names of companies, figures, and locations — before any further steps are taken,” Adeola said. “It is not the role of the Senate to recover funds; that lies with appropriate agencies.”

Other senators, including Senator Ibrahim Dankwambo (Gombe North), also called for a more comprehensive final report identifying all “actors” involved in the theft, the specific wells and rigs affected, and quantities of crude lost through illegal bunkering and pipeline leakages.

“The title of the report includes ‘the actors,’ so we must know who they are. It is a complex web involving companies, individuals, and illegal refineries. We need well-by-well and rig-by-rig data,” Dankwambo said.

Senator Enyinnaya Abaribe (Abia South) urged patience, stressing that since the report was interim, the Senate should only receive it and await the final submission.

Presiding over the session, Senate President Godswill Akpabio commended Senator Nwoko and his team for their “thorough and courageous work,” but aligned with colleagues who said the Senate could not directly recover stolen funds.

“Our duty is to track and trace. Recovery is a separate mandate handled by government agencies. Nonetheless, we encourage the committee to continue its work and present a final, comprehensive report,” Akpabio said.

He described the estimated $300 billion in crude oil losses as “staggering,” saying it underscores the need for urgent reforms and stricter oversight of Nigeria’s petroleum sector.

The Senate thereafter resolved to adopt the interim report and directed the ad hoc committee to continue its investigation and submit a final report with detailed findings and actionable recommendations.