Nigeria may have lost over $300 billion in crude oil revenue to theft, leakages, and systemic corruption, according to an interim report of the Senate Ad-Hoc Committee on Oil Theft in the Niger Delta.
The report, presented on Wednesday by Senator Ned Nwoko (Delta North), exposed severe lapses in the management of the oil and gas sector, including weak enforcement, poor measurement systems, and widespread unaccounted exports that have cost the country unprecedented financial losses.
“The findings so far expose systemic irregularities and inefficiencies that have robbed Nigeria of enormous wealth,”
Senator Nwoko told lawmakers while submitting the 40-page report.
Billions Lost, Billions Untracked
According to the committee’s findings, Nigeria recorded crude revenue shortfalls of $81 billion between 2016 and 2017, while over $200 billion in oil proceeds have remained unremitted or untracked since 2015. The cumulative losses, based on consultant data, are estimated to exceed $300 billion.
Lawmakers described the revelations as disturbing and eye-opening, though heated debate ensued over the committee’s proposal to “track, trace, and recover” stolen crude and proceeds.
Debate Over Legislative Powers
Senator Abdul Ningi (Bauchi Central) praised the committee’s efforts but cautioned that recovery of stolen assets lies beyond the Senate’s constitutional powers.
“We can track and trace, but recovery is for the EFCC or ICPC,” Ningi noted.
Senator Solomon Adeola (Ogun West), Chairman of the Appropriations Committee, agreed, emphasizing that the Senate’s role should focus on oversight and documentation.
“The committee should provide names, figures, and locations, but recovery is an executive responsibility,” he said.
Similarly, Senator Ibrahim Dankwambo (Gombe North), a former Accountant-General of the Federation, called for a forensic audit of every well, rig, and company, to identify all parties involved, including illegal refineries and complicit individuals.
“This is not mere theft — it’s a deep web of collusion and concealment,” Dankwambo asserted.
Committee Recommendations
To curb future losses, the committee recommended the following measures:
- Nigerian Upstream Petroleum Regulatory Commission (NUPRC) should enforce global measurement standards at all production and export points.
- Deployment of unmanned aerial vehicles (UAVs) and advanced surveillance systems to monitor pipelines and coastal operations.
- Creation of a Maritime Trust Fund to strengthen maritime security.
- Establishment of special courts for speedy prosecution of oil theft cases.
- Full enforcement of the Host Communities Development Trust Fund under the Petroleum Industry Act (PIA).
- Reassignment of abandoned oil wells to the NUPRC for productive use.
Akpabio Commends Probe, Urges Legislative Restraint
Presiding over the debate, Senate President Godswill Akpabio applauded Senator Nwoko and his team for a “thorough and courageous effort,” but echoed the need for separation of powers.
“Our duty is to track and trace. Recovery lies with executive agencies. Nonetheless, this $300 billion revelation is staggering and demands urgent reform,” Akpabio said.
The Senate thereafter adopted the interim report and directed the committee to continue its investigation and present a final, actionable report on stopping oil theft and plugging revenue leakages.
Key Points:
- Senate report reveals over $300 billion in crude oil losses.
- Weak oversight and poor measurement blamed for massive leakages.
- Lawmakers call for forensic audit, advanced surveillance, and legal reforms.
- Senate President urges restraint, says recovery efforts belong to executive agencies.
Leave a comment