Senate Investigates $300bn Crude Oil Theft

The Senate on Wednesday received the interim report of its Ad Hoc Committee investigating crude oil theft in the Niger Delta, amid fresh concerns that Nigeria may have lost more than $300bn in unaccounted crude proceeds over the years due to alleged collusion, poor industry oversight, and entrenched sabotage networks.

The committee, chaired by Senator Ned Nwoko (Delta North), was set up earlier this year to probe the persistent theft of crude oil, bunkering operations, illegal export networks, and alleged compromises within regulatory and security systems — a crisis long blamed for dwindling production and Nigeria’s failure to meet OPEC output quotas.

Presenting the interim findings, Nwoko disclosed that the committee uncovered “systemic irregularities, poor measurement standards, and weak enforcement” across the petroleum value chain.

The preliminary document, which runs into about 40 pages, lays out proposed reforms and urgent actions. “We are proposing to go straight to the recommendations as the full report is voluminous,” Nwoko said.

“The committee, after extensive assessment, recommends that the Nigerian Upstream Petroleum Regulatory Commission should strictly enforce internationally accepted crude oil measurement standards at all production sites and export terminals.”

The report further advised the Federal Government to equip security agencies with modern surveillance technology, including unmanned aerial vehicles, to monitor pipelines and export routes. It also called for the establishment of a Maritime Trust Fund to enhance maritime security, infrastructure, and inter-agency intelligence operations.

Other recommendations include the establishment of special courts to prosecute crude oil thieves, full implementation of the Host Communities Development Trust Fund under the Petroleum Industry Act, and the handover of abandoned wells to the NUPRC for proper management and utilization.

However, the recovery proposal sparked immediate debate. Senator Abdul Ningi (Bauchi Central) praised the report as “detailed and commendable,” but maintained that direct recovery of stolen funds exceeds the powers of the legislature.

“We can track and trace, but recovery is beyond the powers of the Senate. The committee should specify losses, locations, and report back for referral to agencies such as the EFCC or ICPC,” he said.

Ningi noted that consultant data referenced in the report showed revenue shortfalls of $81bn between 2016 and 2017, and an additional $200bn in unaccounted proceeds from 2015 to date.

Appropriations Chairman Senator Solomon Adeola backed Ningi’s position. “The committee should provide more details — names of companies, figures, and locations — before any further steps are taken,” he added. “It is not the role of the Senate to recover funds; that lies with appropriate agencies.”

Senator Ibrahim Dankwambo (Gombe North) insisted that the final report must clearly identify all “actors” involved. “The title of the report includes ‘the actors,’ so we must know who they are. It is a complex web involving companies, individuals, and illegal refineries,” he argued. “We need well-by-well and rig-by-rig data.”

Senator Enyinnaya Abaribe (Abia South) urged caution, noting that the document remains an interim submission.

Senate President Godswill Akpabio commended the committee’s “thorough and courageous work” but aligned with colleagues who argued that recovery of stolen oil and funds falls under executive agencies.