Senate, through its Adhoc Committee on the Incessant and Nefarious Acts of Crude Oil Theft in Niger Delta and the Actors, on Wednesday disclosed that Nigeria lost an estimated $300 billion revenue from the natural resources from 2015 to date.
The 23-man committee, which is investigating repeated sabotage of oil installations, and crude oil theft in the Niger Delta, identified systemic irregularities, poor measurement standards and weak enforcement in the oil and gas sector resulting in unaccounted crude oil sales.
Presenting the interim report of the committee, its chairman, Senator Ned Nwoko (APC Delta North), said the findings stems from oral submissions made by stakeholders, documents, records and findings from the general public.
He said the 40-page interim report recommends several measures to tackle crude oil theft, strengthen accountability, and recover lost revenues, adding that the committee, after extensive assessment, recommended that the Nigerian Upstream Petroleum Regulatory Commission, NUPRC should strictly enforce internationally accepted crude oil measurement standards at all production sites and export terminals.
The report further urged the Federal Government to equip security agencies with modern surveillance technology.
This , it suggested should include “unmanned aerial vehicles (UAVs) to combat oil theft as well as to establish a Maritime Trust Fund to enhance maritime infrastructure and safety.”
Other recommendations include the establishment of special courts to prosecute crude oil thieves, full implementation of the Host Communities Development Trust Fund under the Petroleum Industry Act, PIA.
The report further recommended the handing over of abandoned wells to the NUPRC for proper management and utilisation.
It also called for strict implementation and enforcement of internationally acceptable crude oil measurement standards at all production sites and export terminals or the restoration of the Weights and Measures Departments of the Federal Ministry of Industry, Trade and Investment to the upstream sector.
According to the committee, this should be followed with empowering the Weights and Measures Departments to acquire and use state of the art measuring equipment at all production sites and export terminals.
It noted that this would promote and strengthen accurate measurement, transparency and accountability in the oil and gas industry.
The committee also proposed that it be empowered to “track, trace, and recover” all stolen crude oil and its proceeds, locally and internationally — a recommendation that immediately sparked debate among lawmakers.
While some Senators commended the committee for a job well done, they cautioned against exceeding legislative powers.
Specifically, Senator Abdul Ningi (PDP Bauchi Central), described the report as “detailed and commendable,” but argued that the committee’s mandate should not include direct recovery of stolen funds.
He said: “We can track and trace, but recovery is beyond the powers of the Senate. The committee should specify losses, locations, and report back for referral to agencies such as the EFCC or ICPC.”
Senator Ningi noted that consultant reports cited in the document revealed crude oil revenue shortfalls of $81 billion between 2016 and 2017, in addition to $200 billion in unaccounted proceeds from 2015 to date.
Also contributing, the Chairman, Senate Committee on Appropriations, Senator Solomon Adeola supported Ningi’s position, saying the recovery process must be handled by the executive arm.
“The committee should provide more details — names of companies, figures, and locations — before any further steps are taken.
“It is not the role of the Senate to recover funds; that lies with appropriate agencies,” he stressed.
Other Senators, including Senator Ibrahim Dankwambo (PDP Gombe South), also called for a more comprehensive final report so as to identify all “actors” involved in the theft, the specific wells and rigs affected and quantities of crude lost through illegal bunkering and pipeline leakages.
“The title of the report includes ‘the actors,’ so we must know who they are. It is a complex web involving companies, individuals, and illegal refineries. We need well-by-well and rig-by-rig data,” Dankwambo said.
In his remarks, President of the Senate, Senator Godswill Akpabio commended members of the committee for their “thorough and courageous work,” but aligned with colleagues who said the Senate could not directly recover stolen funds.
“Our duty is to track and trace. Recovery is a separate mandate handled by government agencies. Nonetheless, we encourage the committee to continue its work and present a final, comprehensive report,” he said.
The Senate President described the estimated $300 billion in crude oil losses as “staggering,” saying it underscores the need for urgent reforms and stricter oversight of Nigeria’s petroleum sector.
The Red Chamber also thereafter resolved to adopt the interim report and directed the ad hoc committee to continue its investigation and submit a final report with detailed findings and actionable recommendations.
Facebook Comments Box
