Nigeria Lost $2.77billion to Oil Theft, Two Other Factors in One Year

Nigeria Lost $2.77billion to Oil Theft, Two Other Factors in One Year

  • Nigerian Government lose 42.25 million barrels of crude oil which is worth over $2.77 billion two years ago, falling below 2018 record
  • Sabotage, oil theft, and metering error were blamed for the loss in a 2019 report by Nigeria Extractive Industries Transparency Initiative
  • The oil and gas report stated that the Federal Government generated $34.22 billion from the sector in 2019, rising above the $32.63 billion of 2018

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In 2019, Nigeria lost about $2.77 billion to oil theft after sabotage of 42.25 million barrels of crude oil, a new report released by the Nigeria Extractive Industries Transparency Initiative (NEITI) stated.

NEITI stated that the amount fell below what was recorded in 2018 when the country lost 53.28 million barrels - this is a difference of 11.03% in comparison.

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However, during the period under review, Nigeria generated $34.22 billion from the oil and gas sector, surpassing the $32.63 billion earned in 2018, making it a 4.88% increase.

Oil theft, sabotage cost Federal Government over $2 billion
President of Nigeria, Muhammadu Buhari. Photo: Muhammadu Buhari
Source: Facebook

Activities that caused the loss

Aside from sabotage on pipelines, the 2019 report also blamed theft and metering error for the loss which NEITI said could have increased the gains from oil and gas within the year.

NEITI's report was based on information submitted by Nigerian Liquefied Natural Gas (NLNG) Company, 88 oil and gas firms and nine government agencies.

Following its findings, NEITI advised that more land and aerial surveillance, as well as geophones trenched pipelines, should be done by the Nigeria National Petroleum Corporation.

It also said the success of oil and gas industrial parks in the Niger Delta should be the Federal Government's priority, and provide employment, as well as develop infrastructure for the oil and gas sector in the country's oil-producing states

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Minister want Nigerians to pay full fuel cost

The Minister of State for Petroleum, Timipre Sylva, has stated that he is not a fine of fuel subsidy, and the Federal Government should remove it.

Sylva said the subsidy is holding the country back, preventing Nigeria from generating profit from its investment in crude oil refine outside the country.

He said the government should make Nigerians buy fuel at full price without subsidising the cost for them. Sylva said it will favour the country.

Source: Legit

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