Business & Strategy

$10 Billion Oil Theft: Nigerian Assembly Investigates and Summons NNPC, Dangote Group

Written by Jerry Alomatu on July 26, 2024

News Views: 283

Nigeria experienced a staggering loss of about $10 billion from January to July 2024 due to theft, vandalism, and other criminal activities affecting its oil sector, according to a statement from the House of Representatives on Thursday. This loss, amounting to an average of 437,000 barrels of crude oil per day, has prompted urgent investigations by both the House and Senate.

The House of Representatives has formed a special committee to probe the illegal lifting of crude oil and its widespread impact. This committee, chaired by Alhassan Ado-Doguwa, was set up to uncover the immediate and root causes of oil theft and propose effective remedies.

During the session, Speaker Tajudeen Abbas, represented by Deputy Speaker Benjamin Kalu, condemned the severe economic repercussions of oil theft, including environmental degradation, heightened insecurity, and diminished government revenue. Abbas stressed the need for a coordinated effort to address and reverse these damaging trends.

The committee is set to explore the roles of criminal gangs, militia groups, local communities, and security agencies, and assess current security measures and legal frameworks.

Meanwhile, the Senate has initiated its own investigation into economic sabotage within the petroleum sector. Led by Senator Opeyemi Bamidele, the 15-member Ad-Hoc Committee will investigate the importation of toxic fuels and review the activities of major stakeholders, including the Nigerian National Petroleum Company Limited (NNPC) and Dangote Petroleum Refinery.

These parallel investigations mark a significant step towards addressing Nigeria’s oil theft crisis and improving the security and integrity of the nation’s oil industry.