Who’s stealing Nigeria’s oil?

How could Nigeria’s crude oil be stolen at such monumental scale yet none is arrested, none held responsible?

Nigeria’s crude oil had always been stolen since 1956 when oil was first discovered in Oloibiri, Bayelsa State. There was under-declaration of quantity produced. There was the dubious manipulation of the instruments of calibration in which case, only the the producers knew the exact quantities produced and shipped. There was the breaching of pipelines by petty burglars who siphoned crude from the mains. There was the offshore, high sea loading bays where even the Directorate of Petroleum Resources (DPR) acts are confounded.
But today, we have the semi-official and brazen carting away of Nigeria’s crude oil. This is a situation someone has described as crude stealing carried out at an industrial scale.

Various stakeholders have raised the alarm over the monumental crude oil theft going on in Nigeria since last year. Mr. Austin Avuru, immediate past chief executive of Seplat, a leading oil producer recently bemoaned the situation in the industry, calling for an emergency.
Tony Elumelu who owns substantial interest in Tenoil tweeted that the industry was dying as about 95 % of production was being lost to thieves. He pointed out that Bonny Export Terminal which ought to receive about 300,000 barrels per day was receiving a dismal 3000 barrels per day.
Speaking on the situation, Rivers State Governor Nyesom Wike, had alerted the nation that top security personnel and senior government officials, among high level stakeholders, were in on the crude theft bazaar.
According to report, between January 2021 and February 2022, about $5.5 billion worth of crude which amounts to between 80 to 95 % of total Nigeria’s production was stolen.

Mr. Mele Kyari, the Group Managing Director of of the Nigerian National Petroleum Company Limited (NNPCL) corroborated the above report when he appeared before the House of Representatives Committee. Kyari confirmed Elumelu’s position, saying that the massive stealing led to some joint venture partners like Shell declaring a force majeure and the shutting down of two production fields.

This state of affair is unacceptable. This is especially so considering that President Muhammadu Buhari doubles as the oil Minister, which makes the situation further confounding. As we noted earlier, this level of crude oil theft was never known in the history of Nigeria. Mr. President also stands indicted because as the commander in Chief, he controls the armed forces and security operatives. In fact, protecting strategic national assets like Nigeria’s crude oil facilities is one of the president’s primary responsibilities.

In the midst of the reported mind-boggling theft, no culprits are reported to have been apprehended. Crude oil is a special commodity that requires a special mode of transportation. It is not a commodity to be concealed under a bushel so to speak. It can only be stolen with the instruments of specialized trucks, pipelines or via shipping. It is therefore implausible that crude oil could be stolen so easily without apprehending the culprits.
It has been alleged in many quarters that this level of stealing is with the collusion of high officials of the state oil corporation, staff of oil producing companies and senior military and security officials. There is also the well known fact that stolen crude is discounted from joint venture accounting for profit sharing. So it is largely in the interest of the partners that huge theft is reported and discounted!

Apart from this manner of losses hemorrhaging the economy almost to death, it is an odious tale that soils the image of Nigeria.
President Buhari and members of his government ought to be embarrassed that such quantum of her primary product is stolen right under his nose.
This sordid tale suggests that Nigeria is a near-failed state with scarcely any structure of government functioning.

Finally, huge proceeds from oil theft is sure to end up in the hands of bandits and terrorists who would continue to dog the already fragile corporate existence of Nigeria. This makes the situation scary as it is embarrassing.
We urge President Buhari to act fast and act decisively. Culprits and accomplices both in the industry and military hierarchy must be fished out and prosecuted quickly for the good of Nigeria. We need to restore sanity in our oil production quick.