Oil Theft Probe Launched by Reps: Determined to Uncover Root Causes
House of Representatives Launches Probe into Oil Theft in Nigeria
On Thursday, the House of Representatives Special Committee on Oil Theft and Losses commenced an investigation into the illegal lifting of crude oil in Nigeria to address the root causes of the challenges facing the sector.
The Special Committee, chaired by Alhassan Ado-Doguwa, representing Doguwa/Tudun Wada Federal Constituency in Kano State, was inaugurated by Speaker Tajudeen Abbas. The event was attended by representatives of the Chief of Defence Staff, the Chief of Army Staff, the Chief of Air Staff, and the Inspector General of Police, alongside top-ranking officers from various military formations.
The Committee’s mandate includes investigating oil theft and the involvement of criminal gangs, militia groups, local communities, companies, and security agencies in these activities.
Deputy Speaker Benjamin Kalu, representing Speaker Abbas, highlighted the severe economic impact of oil theft. “The statistics on crude oil theft are alarming, and its negative impact on the economy is monumental. Between January and July 2024, Nigeria lost an average of 437,000 barrels of crude oil per day due to theft, vandalism, and other criminal activities. At current oil prices, this translates to over $10 billion in losses.”
He added, “Oil theft reduces government revenue needed for national development and leads to environmental degradation, heightened insecurity through piracy, kidnapping, militancy, and the shutdown of production by many companies. This reduction in revenue has forced the government to borrow to cover budget deficits.”
Kalu identified corruption as a major hindrance to sustainable development in the oil sector and pledged Parliament’s support to anti-graft agencies. “We are determined to strengthen the Economic and Financial Crimes Commission, the Nigeria Extractive Industries Transparency Initiative, and other anti-corruption agencies to combat corruption in the oil and gas sector.”
Secretary to the Government of the Federation, George Akume, reiterated the Federal Government’s commitment to securing the nation’s oil and gas infrastructure. Represented by Permanent Secretary Maurice Nnamdi, Akume noted that over $1.5 billion had been spent on this effort since 2020. “These funds have been allocated towards enhancing surveillance capabilities, securing pipelines, and increasing law enforcement presence in critical oil-producing areas.”
Chairman Ado-Doguwa assured Nigerians of the Committee’s dedication to a thorough investigation. “Our aim is to use every legislative tool to uncover the root causes of oil theft, bring those complicit to justice, and develop sustainable solutions to safeguard our oil sector and promote national development.”
He outlined the Committee’s methodology, which includes inviting memoranda and presentations from key stakeholders in the oil industry and security sector and engaging with international and local oil companies, community leaders, and relevant agencies. “We have identified issues such as undetected vessels transporting stolen crude oil, collaboration among government and security agencies in illicit activities, and the inefficiencies of current measures to combat oil theft.”
Immediate past Deputy Speaker Idris Wase warned Ado-Doguwa about the dangers of his new role. “Mr. Chairman, you are involved in a very dangerous business. These individuals sabotaging Nigeria’s economy will come after you, but God will shield and protect you.”
The House of Representatives’ probe into oil theft aims to uncover the root causes and implement effective measures to combat this pervasive issue, ensuring the integrity of Nigeria’s oil sector and boosting the nation’s economic development.
