By Adeosun Christiana Pelumi (Siwes student, D.S. Adegbenro Polytechnic)
On Monday, the Federal Government disclosed that a staggering N4.3 trillion worth of crude oil had been stolen in 7,143 cases of pipeline vandalism over the span of five years. This revelation took place during the Nigeria International Pipeline Technology and Security Conference in Abuja, under the theme “Bolstering Regulations, Technology, and Security for Growth,” organized by the Pipeline.
During a presentation at the conference by the Nigeria Extractive Industries Transparency Initiative (NEITI), a federal government agency, it was unveiled that oil theft and losses in Nigeria have reached the status of a national emergency. Ogbonnaya Orji, the Executive Secretary of NEITI, emphasized that oil theft has become a critical emergency, posing a significant threat to oil exploration and exploitation, thereby resulting in substantial adverse effects on economic growth, business opportunities, and the profit margins of oil companies.
Citing data from the agency’s reports, he stated, “According to NEITI, in the past five years, from 2017 to 2021, Nigeria experienced 7,143 incidents of pipeline breakages and deliberate 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 revealed that during this same period, Nigeria incurred expenses of N471.493 billion for the repair and maintenance of pipelines.”
Furthermore, Orji highlighted that, based on NEITI’s 2021 Oil and Gas Industry Report released in September, the sector contributed significantly to Nigeria’s economy. It accounted for 72.26 percent of the country’s total exports and foreign exchange earnings, 40.55 percent of government revenue, and generated 19,171 jobs.
From the perspective of NEITI, there’s no room for debate about the fact that despite the significant strategic contributions of the oil and gas sector, Nigeria has not been able to fully realize the optimal benefits from its oil and gas resources. This shortfall is attributed to the ongoing challenges of oil theft, losses resulting from pipeline vandalism, pipeline integrity breaches, deliberate sabotage, and the prevailing insecurity in the region.
As of Monday, the Federal Government revealed a staggering figure of more than N4.3 trillion worth of crude oil theft, occurring in 7,143 cases of pipeline vandalism within a span of five years. This revelation took place during the Nigeria International Pipeline Technology and Security Conference.
