Nigeria: Absence of Metering System, Unworkable Security Arrangement, Cause of Oil Theft – Panel

The Special Investigative Panel on Oil Theft/Losses in Nigeria has attributed losses running into billions of US dollars being experienced in the oil industry to the absence of a robust industry-wide metering system; and an unworkable security arrangement.

The panel made this known while submitting its report to the National Security Adviser, NSA, Maj.-Gen. Babagana Monguno, retd, on Monday, March 27, 2023.

A statement signed by Mr Zakari Usman, Head, Strategic Communication, Office of the National Security Adviser, ONSA, and made available to journalists yesterday, said: “The panel engaged key stakeholders both within and outside the oil and gas industry.

“Others that were engaged include state governments; ministries, departments and agencies, MDAs; security agencies; regulatory agencies; international and indigenous oil companies; traditional institutions; host communities; artisanal refiners, among others.

“In discharging the responsibility of the panel, it received and reviewed several memoranda and reports on oil theft and losses.

“During the assignment, the panel discovered several layers of involvement in the illegal theft of crude oil, despite the best efforts of the armed forces and other security agencies to combat the activities of oil thieves.

“The panel also observed that crude oil losses arose from a lack of proper reporting of crude oil production; illegal refining; theft from wellheads; and diversion from sophisticated pipelines network.

“The panel also attributed losses to the absence of a robust industry-wide metering system; and an unworkable security arrangement.

“The confusing roles of regulatory agencies was also cited as being responsible for making the detection of theft/losses difficult.”

immediate impact on crude oil production levels to meet OPEC’s quota but would also attract foreign direct investment and serve Nigeria’s economic and national security concerns.

Receiving the report, the NSA, Monguno, thanked the panel for keeping to the timeframe and addressing the issues of oil theft and losses comprehensively.

He assured that government would study the report and see to its immediate implementation, especially the recommendations with short-term perspectives.

Recall that NSA inaugurated the investigative panel on December 6, 2022, and gave it 10 weeks to complete the assignment, with extensive terms of reference to investigate all aspects of crude oil theft/losses in all its ramifications.

The panel commenced work the same day.

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