On Monday, the Federal Government unveiled disturbing statistics, indicating that over N4.3 trillion worth of crude oil had been pilfered in 7,143 instances of pipeline vandalism over a five-year period. 

This revelation came to light during the Nigeria International Pipeline Technology and Security Conference held in Abuja under the theme “Enhancing Regulations, Technology, and Security for Advancement.” The event was organized by the Pipeline Professionals Association of Nigeria.

During a presentation at the conference by the Nigeria Extractive Industries Transparency Initiative (NEITI), a government agency, it was underscored that oil theft and losses in Nigeria had escalated to the level of a national crisis. Ogbonnaya Orji, the Executive Secretary of NEITI, emphasized that oil theft posed a significant threat to oil exploration and exploitation, with dire repercussions on economic growth, business opportunities, and profit margins for oil companies.

Citing data from the agency’s reports to substantiate his assertions, Orji stated, “NEITI has revealed that in the past five years, spanning from 2017 to 2021, Nigeria experienced 7,143 incidents of pipeline breaches and deliberate acts of vandalism, resulting in the theft of 208.639 million barrels of crude oil valued at $12.74 million or N4.325 trillion. NEITI’s reports also indicate that during this same period, Nigeria incurred expenses of N471.493 billion for pipeline repairs and maintenance.”

Orji also highlighted that according to NEITI’s 2021 Oil and Gas Industry Report, released in September, the sector accounted for 72.26% of Nigeria’s total exports and foreign exchange earnings, 40.55% of government revenue, and provided employment for 19,171 individuals.

“However, for us in NEITI, it is not a matter of debate that despite the strategic contributions, the country is yet to derive optimal benefits from its oil and gas resources due to oil theft and losses through pipeline vandalism, pipeline integrity compromise, outright sabotage, and general insecurity in the region.

“From NEITI’s reports over the years, and recently insights from our membership of the Special Investigative Panel on Oil Theft and Losses, we are aware that oil theft is perpetrated mainly through pipeline clamping, illegal connections on major pipelines, exploitation of abandoned oil wellheads, pipeline breakages and vandalism of key national assets to illegally siphon crude into waiting vessels stationed in strategic terminals.

“This criminal exploits take place most times in atmosphere of communities’ complicity and conspiracy of silence,” the NEITI boss stated.

He stressed that it was also a matter of fact that many members of the pipelines association were directly and indirectly involved in providing the skills and knowledge required to perpetrate oil theft.

“As you are aware, illegal connections, pipeline clamping, etc, cannot be done by just anybody. And so, your association is largely complicit by failing to put in place stringent regulation and appropriate sanctions to check involvement of your members.

“For instance, NEITI has put in the public domain empirical data of oil theft and losses at 619.7 million barrels of crude, valued at $46.16bn or N16.25tn between 2009 and 2020.

“In addition, Nigeria lost 4.2 billion litres of petroleum products from refineries, valued at $1.84bn at the rate of 140,000 barrels per day, from 2009 to 2018.

“Thus, the total value of crude losses between 2009 and 2020 is higher than the size of the country’s foreign reserves and almost 10 times Nigeria’s oil savings in Excess Crude Account,” Orji stated.

Addressing the conference attendees, he emphasized that the Nigerian economy cannot thrive in an environment plagued by oil theft, pipeline vandalism, and overall insecurity within the oil-producing regions.