The Executive Secretary of the Nigeria Extractive Industries Transparency Initiative, Dr. Ogbonnaya Orji, revealed that Nigeria suffered losses totaling $1.84 billion from petroleum products stolen from refineries over nine years.
Dr. Orji made this disclosure on Monday during the opening ceremony of the 2024 NEITI board retreat/meeting held in Lagos. He highlighted that between 2009 and 2018, approximately 4.2 billion liters of petroleum products were lost due to oil theft from refineries, amounting to an estimated 140,000 barrels per day.
Expressing concern over the escalating rate of oil theft, Dr. Orji remarked, “Figures from our audits spanning 2009 to 2020 show that Nigeria’s losses from crude oil theft over 12 years amounted to 619.7 million barrels, valued at $46.16 billion or N16.25 trillion. Similarly, from 2009 to 2018 alone, the country lost $1.84 billion from 4.2 billion liters of petroleum products stolen from refineries.”
He noted that these losses, coupled with their adverse effects on the economy, prompted the previous administration to establish a special panel on oil theft/losses to investigate the situation.
Dr. Orji also mentioned that NEITI had produced a report containing recommendations to combat oil theft in Nigeria, urging the current administration to review the report and implement its recommendations.
The five-day retreat, he emphasized, provided an opportunity to brainstorm solutions to current challenges such as oil theft, illegal mining, pipeline security, and other governance issues that have contributed to revenue losses and hindered investment opportunities.
Regarding energy transition, Dr. Orji expressed apprehension about the impact of the global shift from fossil fuels to renewable energy on Nigeria’s economy. He highlighted the nation’s heavy reliance on oil revenues and stressed the need for timely policy decisions and strategies to address this significant development in the extractive sector.
Dr. Orji concluded by underscoring the potential long-term implications of the transition from carbon-based fuels on Nigeria’s economy, including the need for substantial financial investments in renewable energy to offset the energy deficit left by declining fossil fuel use.
In response, Governor Babajide Sanwo-Olu of Lagos State emphasized the urgency of reviewing existing laws governing oil and mineral resources to facilitate their effective exploitation and enhance economic diversification. He emphasized the importance of federal engagement with the private sector and sub-national governments to develop natural resources, promote environmental sustainability, and drive poverty reduction initiatives in resource-rich countries like Nigeria.
Punch