The Senate Ad-Hoc Committee on Crude Oil Theft in the Niger Delta says it has uncovered close to $300billion unaccounted for from crude oil sales by the Nigerian National Petroleum Company, NNPCL Limited.
The revelation was contained in a preliminary report submitted to the Senate on Wednesday by the chairman of the Committee, Senator Ned Nwoko.
The report noted that a forensic review of domestic crude proceeds and tax oil returns showed differentials, mismatches and unaccounted funds amounting to a staggering $22 billion.
Similarly, it uncovered a shortfall of $81 billion between receipts declared by the NNPCL and those recorded by the Central Bank of Nigeria, CBN for 2016 and 2017, a development that shocked the Senate.
Furthermore, the panel’s review of crude oil sales from 2015 to date, indicated that over $200bn in oil proceeds remained unaccounted for globally.
The report followed months of document reviews and public hearings, tracing the problem to faulty measurement systems, weak regulatory oversight, and poor coordination among government agencies.
The panel identified the use of unverified measuring instruments, lack of meteorological control, ineffective interagency collaboration, and uncoordinated enforcement mechanisms as major enablers of crude oil theft.
The panel also faulted the suspension of the Weights and Measures Department’s activities in the upstream sector under the Petroleum Industry Act (PIA) 2021, saying the decision undermined accountability and accurate measurement in crude oil operations.
In addition, it noted that the absence of a special court to prosecute oil thieves and the non-implementation of the Host Communities Development Trust Fund, HCDTF, under the PIA had contributed to persistent sabotage and theft in oil-producing areas.
The panel projected that the unaccounted domestic crude sales proceeds amount to about $300 billion, calling for urgent local and international tracking, tracing and recovery of stolen crude oil funds for the benefit of the country.
The committee appealed to the Federal Government to mandate the Nigerian Upstream Regulatory Commission, NUPRC to enforce international crude oil measurement standards at all production sites and export terminals or restore the Weights and Measures Department to its former regulatory role.
Moreover, it recommended that the government provide security agencies with modern surveillance technology and equipment, including unmanned aerial vehicles, to strengthen monitoring of oil facilities and detect theft and leakages in real time.
The panel called for the establishment of a Maritime Trust Fund to support the development and maintenance of maritime infrastructure, training and safety operations, as well as the creation of a special court to promptly prosecute crude oil thieves and their collaborators.
The Nwoko panel advised the immediate implementation of the Host Communities Development Trust Fund (HCDTF) to reduce community sabotage and promote inclusion in the management of oil resources.
Besides, the committee expressed concern over the growing number of abandoned and poorly decommissioned oil wells across the Niger Delta, which it said were leaking oil and gas into the environment and polluting communities.
The report recommended that such wells be ceded to the NUPRC for handover to modular refineries to increase crude availability for local consumption and reduce vandalism.
Nigerian Tribune
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