African Democratic Congress (ADC) presidential candidate in the 2023 elections, Dumebi Kachikwu, has stressed the need for effective measures to combat theft and vandalism of oil pipelines.
Referencing President Bola Ahmed Tinubu's "Renewed Hope Agenda," Kachikwu acknowledged Tinubu's commitment to addressing the challenges and expanding oil and gas production.
As the new leader of the nation, Kachikwu urged Tinubu to take decisive action to halt illicit activities that divert valuable resources away from the country's coffers.
"One thing must be made clear: as the drive to diversify the economy and reap the benefits inherent in the digital ecosystem and blue economy, the economic survival of the country still lies in the oil oozing out of the Niger Delta, and any other inland discovery of large deposits of hydrocarbons and their exploration and production," he said.
In a statement he issued yesterday in Abuja, Kachikwu pointed out that the survival of Nigeria's economy still relies heavily on oil, making it crucial to curb the menace of pipeline vandalism and oil theft.
Kachikwu underscored the multifaceted causes of oil theft, including political sabotage, organised crime, corruption and poverty.
He noted that the Niger Delta region, which serves as Nigeria's primary oil-producing area, has borne the brunt of these challenges.
Drawing attention to alarming statistics, Kachikwu cited various instances of substantial revenue loss due to oil theft and pipeline vandalism.
He highlighted notable cases from previous years that demonstrate the extent of financial damage caused by these criminal activities, just as he however acknowledged government's efforts to tackle the issue, including increased surveillance and security measures around oil pipelines.
Kachikwu proposed a comprehensive approach to addressing the root causes of oil theft and pipeline vandalism.
His recommendations included engaging with communities in the Niger Delta to combat poverty and unemployment, investing in infrastructure development to create jobs, and enhancing transparency in the oil sector to prevent corruption.
Kachikwu applauded Tinubu's removal of fuel subsidy as a step towards reducing illegal activities, and he called for similar actions to counter oil theft.
According to him, oil theft in Nigeria has been caused by various factors, including political sabotage, organised crime, corruption, and poverty, even as the Niger Delta region, which is the main oil-producing region in Nigeria, has been particularly affected by this issue.
He said, "The theft and vandalism of oil pipelines have had gargantuan economic, political and social implications for the country, which is Africa's largest economy. For instance, in 2021, crude oil accounted for 41 per cent of the total federal government revenue, translating to N4.34 trillion ($10.1 billion) in earnings into the Federation account.
"However, the theft of oil has led to a significant loss of revenue for the government, which continues to plague the country's economic growth and development.
"Specific cases of oil theft in Nigeria: In 2015-2016, oil theft, illegal bunkering, and pipeline vandalism led to a loss of $41.9 billion, which is equivalent to 5.8 per cent of Nigeria's GDP. In 2019, the defunct Nigerian National Petroleum Corporation (NNPC) reported that it lost 22.6 million barrels of crude oil, which is equivalent to $1.35 billion, due to pipeline vandalism and oil theft. In 2020, the NNPC reported that it lost 1.7billion liters of petrol, which is equivalent to $1.1 billion, due to pipeline vandalism and oil theft. In 2021, the NNPC reported that it lost 60.4 million liters of petrol, which is equivalent to $39.4 million, due to pipeline vandalism and oil theft. In 2022, the NNPC uncovered an illegal oil connection from Dorados Terminal that had been operated for nine years, leading to a colossal loss of revenue for the government.
"In 2022, the country's crude output in August averaged 972,394 bpd, a multi-decade low, due to pipeline vandalism and oil theft. The Federal Government has intensified its crackdown on oil thieves and pipeline vandals. The government has increased surveillance and security measures around oil pipelines and installations," he said.
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The latest of such efforts being the engagement of a former militant warlord whose security organisation Tantita Nigeria Nigeria Limited, he said, has proved a hard nut to crack by high class thriving gangs who having failed in their attempt to compromise the genuine efforts of the organisation have resorted to all manners of propaganda and lies to get the contract cancelled.
Kachikwu urged the Tinubu-led government to embrace technology for detecting and preventing oil theft.
He also stressed the need to collaborate with international partners to prevent the export and sale of stolen Nigerian oil.
He called for courage in addressing the involvement of certain elite members and armed forces in pipeline vandalism and crude oil theft.
"Therefore, the Tinubu-led federal government must urgently operationalise the use of technologies to detect and prevent oil theft," he added.
