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Nigeria loses trillions of Naira as oil theft hits 100,000 barrels per day
Nigeria, Africa’s most populous nation is losing 100,000 barrels daily which amounts to trillions of naira, according to report.
The report by Bloomberg showed that between 2014 and 2019, millions of barrels of crude oil have been lost to theft, with as high as 100,000 barrels stolen daily in the last few months.
Royal Dutch Shell Plc said in a report last month that saboteurs including thieves caused an 80% increase in the number of oil spills in 2018.
These come against the backdrop of relative cessation of hostilities by Niger Delta militants, and the industry has not recorded any militant-related halts to operations since 2016.
On one level, the report noted, theft is probably a more palatable option for Nigeria and the companies operating there than attacks by militants. About 100,000 barrels a day are being taken out of pipelines, whereas militancy halted at least eight times that amount at one stage three years ago.
Shell rules out force majeure on oil export after Nembe fire. The increase reflects a belief among local communities that multinationals don’t really own the oil resources in the first place, according to Ledum Mitee, a lawyer and minority rights activist.
Commenting on the trend, Mitee told Bloomberg that oil thieves know they can make money instead of just sabotaging pipelines for political reasons.
“They believe the oil is theirs and the government is the thief. “People now realize that instead of just cutting pipelines to spite the government, they can make money out of it,” he said.
According to sources in the oil region, much of the stolen crude is processed in tiny, makeshift refineries comprising hundreds of cauldrons, each of which can hold as much as 150 barrels of oil. Many companies have been affected, leading to several force majeures, the Shell report noted.
Aiteo Group, operator of the Nembe Creek Trunk Line to Shell’s Bonny export terminal, has been one of the hardest hit this year, halting flows through the link at least three times since January.
Shell lost an average of 11,000 barrels a day to theft in 2018, it said. That’s up from losses of 9,000 barrels of crude a day in 2017.
Chevron Corp. has also reported problems with third-party interference on its production facilities. Cheta Nwanze, Head of research at SBM Intelligence, said: “Oil theft is a severe drain on Nigeria’s revenue.
The losses to theft could easily fund Nigeria’s budget deficit.” Speaking at a strategic review meeting last month, Nuhu Ribadu, Chairman of Petroleum Revenue Special Task Force said the federal government loses as much as $25 million (N7.7 billion) daily and $9 billion (N2.8 trillion) annually to oil theft.
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FG Pledges Enhanced Security for Southeast Region
… Adequate security is vital for business prosperity – Badaru
The Honourable Minister of Defence, H.E. Mohammed Badaru Abubakar, has assured the people of the South-East of enhanced security measures, emphasizing that a secure environment is crucial for business growth and prosperity.
During his operational visit to Enugu in the South-East, the Minister addressed officers and personnel of the 82 Division/Joint task force south East Operation Udo ka under the General officer commanding, Major-General H.T Dada .He appreciated their performance while urging them to intensify their efforts in combating insecurity in the region. He also engaged with key stakeholders, including heads of security agencies, traditional rulers, students, and other community leaders, to discuss collaborative strategies for addressing the current security challenges. Other military platforms visited by the Minister included the Nigerian Airforce base Emene, Enugu.
“President Tinubu has directed me to engage with you all to find sustainable solutions to insecurity. Without security, there can be no peace or development,” Badaru stated. He acknowledged the entrepreneurial spirit of the South-East populace, asserting that security and peace are essential for businesses to thrive. “We seek your candid suggestions and information on how we can practically enhance security and foster lasting peace in this region,” he added.
The Minister reaffirmed President Bola Tinubu’s commitment to eradicating all forms of insecurity in the South-East . He elucidated on the progress made by the Tinubu administration over the past year in combating insecurity across the nation, particularly in these region.
“There is a renewed determination to intensify our efforts against all forms of insecurity under President Tinubu’s leadership,” he declared.
In his remarks, Major General Hassan Dada, General Officer Commanding (GOC) 82 Division/ JointTask south East Operation Udo ka, announced that the Army is implementing robust strategies to ensure a safe and secure environment for the upcoming festive season. “Through the Joint Security Task Force in the South-East, code-named ‘Operation UDO KA’, we aim to create a secure atmosphere that facilitates the usual mass return for Christmas,” he stated.
Additionally, retired Major General John Nwoga emphasized the role of social media in exacerbating insecurity, noting that the circulation of old videos depicting criminal activities contributes to fear and panic within communities. “It is imperative for our people to collectively address the negative impact of misleading information and fake news proliferated through social media,” Nwoga urged.
Furthermore, the Minister visited Imo State in continuation of his operational tour of southEast on Friday 22nd November 2024. He addressed the troops at the FOB okigwe, 211 Quick Response Group, Nigerian Airforce owerri and Naval Base Oguta in Imo State. He expressed President Bola Ahmed Tinubu GCFR message to them and that they should improve on their successes.
The Honourable Minister also paid a courtesy visit to Governor Hope Uzodimma of imo state to extend his gratitude to the Governor for all his support to the 82 Division of the Nigerian Army/ Joint Task force south East, Operation udo ka. “All the officers and men appreciates you.”
The Ministry of Defence remains committed to fostering a secure and peaceful environment conducive to business and community development in the South-East. We are determined to end insecurity in Nigeria.
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Rented Crowed, APC AKIDA Leader with Zamfara State Govt. Buses Embark on Campaign of Calumny at DSS Office
Godiya Hamza, a Media Analyst, writes from Abuja
The orchestrated campaign of calumny against the Honourable Minister of State for Defence H.E Dr Bello Muhammad Matawalle MON by a group of street orchins recruited by the leader of APC AKIDA Tijjani Ramallan is very preposterous and indecent.
This is politics too far, Ramadan has been attacking President Bola Ahmed Tinubu GCFR right from campaign days. He never supported or participated in APC activities, he has been jealous of Matawalle loyalty to our President.
Tijjani Ramallan has been sponsoring Banditry and romancing with criminals.
The leader of the APC AKIDA Tijjani Ramallan is being sponsored by the state government to attack the person of Dr Matawalle. It is expected that by now the DSS should have arrested him . He has found himself as a willing tool to be manipulated by Governor Dauda Lawal in attacking Dr Matawalle.
The earlier smear campaign embarked by zamfara state government which was stopped by a court order has forced them to shift to the use of APC AKIDA to carry out their mischief.
What zamfara people need is good governance and not wasting the state resources in trying to pull Matawalle down.
Pull him down syndrome pays no body.
Spotlight
World’s First Surviving Nonuplets Visits Italy To Appear On A TV Show
In December 2022, aged one and a half years old, the world’s first surviving nonuplets went on their first plane flight.
They travelled from Morocco, where they were born and lived for 19 months, to their parents’ home country of Mali.
And now, two months shy of their third birthday, the nonuplets have made their first trip to Europe, visiting Italy to appear on our televised talent show Lo Show dei Record!
We bet it feels so beautiful to see them all grow and wish them the very best 🥳
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