Nigeria’s Senate Reveals $303 Billion in Lost Oil Revenue
Nigeria’s Senate released a report on Wednesday indicating that the country has lost $303 billion in oil revenue over the last ten years. Much of this loss is due to oil thieves who illegally access pipelines and sell the stolen crude oil on the black market.
The report was compiled by the Senate Select Committee on Crude Oil Theft, led by Senator Ned Nwoko, who criticized the government for its lack of action in analyzing or preventing these extensive thefts.
Nwoko urged the federal government to establish a special court for the swift prosecution of oil thieves and their accomplices. He also proposed creating a development trust fund to mitigate sabotage and suggested that control of abandoned and decommissioned oil wells should be transferred to the Nigeria Upstream Petroleum Regulatory Commission (NUPRC).
The committee’s report emphasized the need for investment in advanced surveillance technologies, like unmanned aerial vehicles (UAVs), to keep tabs on oil thieves. Nwoko further indicated that improving oil and shipping infrastructure could complicate the operations of those involved in oil theft.
Additionally, he called for his committee to have the authority necessary to track, trace, and recover all stolen oil revenues, both within the country and abroad. Some senators, however, pushed back, arguing that such recovery efforts should be the responsibility of the federal government, not the Senate.
Other senators voiced their astonishment at how such significant sums could vanish without accountability, noting that the reported shortfall could fund nearly a decade of Nigeria’s budget. This raised questions about the lack of formal mechanisms for tracking or retrieving lost revenue.
The report pointed out that Nigeria not only lacks the financial resources necessary for auditing and recovery but also has no reliable system to measure the oil actually being extracted and sold legally.
It recommended implementing international measurement standards across all production and export sites and equipping those sites for precise measurement. It also called for the Federal Ministry of Trade to take proactive measures when oil shortages occur.
While many senators appreciated the work done by the Nwoko Commission, some criticized it for failing to go far enough—especially in identifying the specific individuals and companies involved in oil theft and the subsequent concealment of profits from black market sales.
Senator Ibrahim Dankwambo emphasized the importance of transparency, citing the need for detailed data on the parties involved, given the complex web of actors in these illicit operations.
Nigeria has struggled with chronic oil theft, with numerous poorly maintained pipelines presenting opportunities for bandits to establish illegal refineries.
Earlier this year, the Nigerian military launched an ambitious anti-piracy operation that dismantled 39 illegal wells within just two weeks. This operation was triggered by the discovery of a pirate pipeline over 2.5 miles long linked to an underwater export terminal.
At that time, the Nigerian National Petroleum Corporation (NNPC) estimated that up to one-third of the country’s oil revenues were being lost due to theft. In a desperate measure, the government enlisted the help of a notorious former oil thief named Ekpem Polo to aid the military in tracking down other criminals.
Known as Tompolo, he has since emerged as a significant figure in Nigeria, positioning himself as a mediator with insurgents and actively campaigning for President Bola Tinubu in the latest election.
Last month, Tompolo’s 54th birthday celebration took place at a secret location, where a guest attracted attention by throwing cash at him, an act against the law in Nigeria.
The Senate report indicates that, despite Tompolo’s previous efforts to combat oil banditry, his contributions have not been particularly effective, underscoring the ongoing challenges facing the nation.
