By Bassey Udo
The decision by the federal government to set up a Special Investigative Panel on Oil Theft and Losses in Nigeria is a welcome development, the Nigeria Extractive Industries Transparency Initiative (NEITI) has said.
The Board of the NEITI, also known as the National Stakeholders Working Group (NSWG), on Wednesday described the decision as bold, courageous, and timely, given the havoc oil theft has wreaked in oil production and the country’s revenue generation.
To underline the seriousness of the oil theft investigation panel, NEITI said its industry reports revealed that Nigeria lost about 619.7 million barrels of crude oil valued at $46.16 Billion, or N16.25 trillion in 11 years between 2009 and 2020.
NEITI said the losses were from theft and sabotage of oil facilities highlighted in information and data provided by an average of eight covered entities under its audit processes over the years.
Details of the losses showed that in 2009 when NEITI commenced reporting of crude oil theft, the country lost about 69.49 million barrels valued at $4.31 billion, while in 2010, 2011, and 2012 about 28.31million, 38.61million and 51.58 million barrels valued at $2.29billion, $4.39billion and $5.82billion were lost respectively.
The NEITI oil & gas industry reports between 2013 and 2020 also showed that the losses to crude oil theft did not abate, as about 78.30million barrels valued at $8.55 billion was lost in 2013 alone, while combined losses for 2014 and 2015 was about 67.29 million barrels valued at $5.57billion.
The figure for 2016, the NEITI report further revealed, was the highest volume, with about 101.05 million barrels valued at $4.42billion reported.
Between 2017 and 2020, the NEITI reports indicated losses of 36.46million barrels ($1.99 billion) in 2017, 53.281 ($3.837billion) in 2018, 42.248million barrels ($2.772billion) in 2019, and 53.056million barrels ($2.21billion) in 2020.
NEITI said the combined value of these losses was about 619.7 million barrels amounting to $46.16 billion over an 11 year period.
NEITI expressed regrets that at a time the country’s economy was largely dependent on oil revenues, some Nigerians would choose to collude with foreign nationals to steal and sabotage the main sources of revenue for the federation.
The transparency agency said it was delighted over the new collaboration between Offices of the Secretary to the Government of the Federation and the National Security Adviser in coordinating the investigations into crude theft, particularly the wisdom in appointing NEITI into the special investigation panel.
NEITI in the statement said in view of its strategic relevance, by virtue of its legitimate interests and mandates in enthroning transparency and accountability in the oil and gas sector, it would guide the Panel with reliable information and data about the problem.
Besides, NEITI said it would deploy its mandate to seek technical support where necessary from 57 member countries of the global Extractive Industries Transparency Initiative to help tackle the international dimension of oil theft in the work of the investigative panel.
After a careful review of the Terms of Reference of the Panel on Oil Theft Investigation, NEITI said it found them to be comprehensive, incisive, and attainable.
The Panel is expected to, among other things, establish the ramifications of crude oil theft/losses in Nigeria; ascertain the causative factors immediate and remote of crude oil theft/ losses in the country; with the widest possible amplitude, identify persons/entities whether public, private or foreign, involved in the criminal enterprise; Ascertain the illegal insertion into the Trans Escravos Pipelines (TEP) around Yokri area in Burutu Local Government Area of Delta State.
Other recommendations in the Terms of Reference include to establish the level of culpability of identified persons/entities in the enterprise; examine the specific roles of Regulatory Agencies; Security Agencies Tiers/Arms of Government and International Oil Companies(IOCs) in aiding and abating the criminal enterprise; Assess the efficacy of the security architecture/arrangement in tackling crude oil theft/losses and associated petroleum products and recommend appropriate, commensurate and sufficiently, deterrent sanctions on all those culpable.
The Panel is also expected to recommend steps, procedures, and processes to be taken by the government to eliminate the enterprise in the industry to prevent future occurrences.
NEITI gave the assurances that working with other members of the Panel who have been carefully selected to carry out the oil theft investigation, the agency would rely more on its multi-stakeholders to support the work of the Committee.
NEITI, therefore, appealed to civil society, the media, development partners, and extractive companies to devote time, energy, and resources to provide reliable information and data to the oil theft investigation panel through the open call for submissions of Memoranda from individuals and as groups to the Panel.
