Oil Theft: Nigeria Loses One Million Barrels of Crude Daily

Following a series of oil theft that has impeded Nigerian oil revenue and plunged crude oil production below 1 million barrels a day, the Nigerian Senate had said Nigeria was losing an average of 1 million barrels of crude oil per day.

Speaking at the presentation of the 2023 budget proposal at the National Assembly, Abuja, on Friday, the Senate President, Ahmad Lawan, who made the disclosure, warned that it is high time the government institute drastic measures against these oil criminals and national saboteurs.

“It is time to take drastic and desperate measures against the thieves,” Lawan declared. “The situation has worsened. Recently, the loss of our oil has reached one million barrels per day. Translated into monetary terms, our loss is monumental.

“The figures show we are not able to meet the Organization of Petroleum Exporting Countries (OPEC) daily quota of 1.8 million barrels per day.”

Weeks after losing its status as Africa’s biggest crude oil producer to Angola, the country’s oil production dropped greatly against Libya in August, according to OPEC’s recent report.

Explaining the damage being done to the nation, the Senate President said oil theft, especially in a developing country like Nigeria, is a source of major concern. Lawan said certain people are hell-bent on ruining the economy and should be seen as the country’s worst enemy.

He said, “I consider oil thieves the worst enemies of our country. The thieves have declared war on our country and our people.

“I strongly feel that if we do not take the necessary measures to stop the thieves immediately, our economy will be devastated, as efforts to provide infrastructure and diversification of the economy would both be thwarted.”

Therefore, the senate president stated that it is time for the Federal Government to take drastic measures against the country’s enemies as their activities are hurting government revenue needed for major developmental projects.

He said Nigeria’s plan to diversify from oil and gas into agriculture, mining, and manufacturing seems to be under serious threat.

The unrepentant attitude of the oil thieves has resulted in a huge deficit for the country and in order to increase revenue and reduce deficit, the Federal Government has to put plans in motion to stop oil theft.

Speaking on the issue of revenue deficit, Lawan said, “Your Excellency, we can reduce the deficit by stopping the theft. We can also consider other options to source more revenues for the government.”.

He asked the government to review waivers and to consider cutting off some major revenue generating agencies from direct funding by placing them on cost of collection of revenues, as it did for the Federal Inland Revenue Service (FIRS), Nigeria Customs Service.