FG Hunts Oil Thieves Amid Fear Of Losing $23 Billion Revenue

Major General Babagana Monguno, Nigeria's former National Security Adviser, has warned that if crude oil theft is not stopped, the country will lose $23 billion in revenue by 2023.

Monguno made this announcement when he established the nine-member Special Investigative Panel (SIP) on Oil Theft and Losses in Abuja.

The SIP's goal is to identify the people, organisations, and groups responsible for the theft of crude oil in the Niger Delta region.

The amount of daily crude oil losses, he claims, is estimated by some sources to be 800,000 bpd. At an average price of $80 a barrel, this translates to an income loss of about $64 million every day.

A revenue gap of almost $23 billion is predicted to occur in 2023 if this tendency is left unchecked and these numbers continue to change.

"This translates to a loss of about N10 trillion when calculated at N445 to $1 exchange rate. This menace assumed a more worrisome dimension with recent discovery of an illegal pipeline connection through which Trans Escravos pipeline was siphoned for several years.”

Monguno added that recent security agency interventions have uncovered extensive unlawful platforms for stealing, including load-outs from illegal operations platforms and maritime evacuations via vessels.

The group is anticipated to start its work immediately, finish it up, and submit its report by no later than February 21, 2023, according to the NSA.

He claimed that because of oil theft carried out by dishonest individuals, Nigeria has repeatedly fallen short of the two million barrels per day daily production quota set by the Organization of Petroleum Exporting Countries (OPEC).

He continued by saying that Nigeria currently struggles to produce even a million barrels of crude oil per day.

He bemoaned the fact that the economy is in danger due to the scale of the oil and revenue losses, forcing the current administration to turn to less popular monetary and fiscal policies in order to solve revenue-side restrictions with catastrophic consequences.

The security operations in the area, according to him, brought to light "a pitiful pattern of organised criminal enterprise of economic sabotage orchestrated by unpatriotic private individuals/groups, local and international companies, leaders, and communities that had shortchanged the economy and painted the Administration in a negative light.

He claimed that the government had been informed of the economy's deteriorating situation, including the inability to replenish foreign reserves and the decline in revenue that had an impact on accruals into the Federation Account.

“With the scale of the theft and losses and the alleged complicity of regulatory agencies/officials and security personnel as well as the involvement of international collaborators, the enterprise is deeply entrenched and would be extremely difficult to exterminate without very stern and decisive action by the government” he said.

He declared that the threat of oil theft is wholly intolerable given its associated effects on the economy, national development, and security.

“It is an affront on the government and its institutions, which must be tackled without further delay.

“It is in this connection that the government, worried by the ugly trend, among other things, directed the setting up of a Special Investigative Panel on Oil Theft/Losses in Nigeria to investigate all aspects of crude oil theft, identify the culprits and submit its report for necessary action” he said.

The panel's chairman is Major General Barry T Ndiomu (retired), and its secretary is David Attah.

Patrick Okonjo, Donu-Kogbora, Dr. Orji Ogbonnaya Orji, MO Ijere, Rear Admiral Atiku Abdulkadir (retd), DIG Maigari Abbati Dikko (retd), and Erobiri Uchena are among the other members.

The panel's members, who included a mix of forensic, security, and industry expertise, were described by the NSA as “with vast knowledge and experience with the required level of patriotism and integrity, is expected to investigate oil theft/losses in all its ramifications and propose a wide-ranging array of implementable recommendations to enable this Administration take decisive action to end the criminal enterprise within the shortest possible time.”

He told the nominees: “You are appointed into the panel based on your proven integrity, track record of service, competence and dedication to the national cause.

“I, therefore, urge you to work tirelessly with a view to justifying the confidence reposed in you, by working round the clock to unravel individuals and groups perpetrating this national economic crime, no matter how highly placed they may be.”

Monguno believes that no one involved in the crime—whether they are on active duty or retired—should be spared.

“We must fish them out and I guarantee you that they will be taken care of appropriately,” he said.

He, therefore, gave the panel the following terms of reference: "ascertain the circumstances surrounding the illegal insertion into the Trans-Escravos Pipeline (TEP) around Yokri area in Burutu local government area of Bayelsa State; establish the ramifications of crude oil theft/losses in Nigeria; ascertain the causative factors immediate and remote, of crude oil/theft/losses in the country; and ascertain the extent of crude oil theft/losses in the country.

Others include; "With the widest possible amplitude identify persons/entities whether public, private or foreign, involved in the criminal enterprise; establish the level of culpability of identified persons/entities in the enterprise; examine the specific roles of Regulatory Agencies; Security Agencies, Tiers/Arms of Government and International Oil Companies (IOCs) in aiding and abetting the criminal enterprise."

Major General Ndiomu (retired), the panel's chairman, assured the audience in his response that the panellists would live up to the trust placed in them.

He said, “We consider this assignment very important. Its importance is elaborated by the damage to the economy as illustrated by the National Security Adviser. To be saddled with the responsibility of partly reversing the ugly trend of the southward trajectory of the fortunes of the major source of government revenue is very rare.”

Major General Ndiomu expressed gratitude to the NSA for selecting them for this significant national task.

He emphasised that the panel will be able to accomplish its goals thanks to the skills that each member has at their disposal.

“We shall leave no stone unturned by digging deep to unravel not only the incidences of oil theft/losses but pre-disposition and causative factors as well as groups and individuals responsible for the criminal enterprise,” he said.

The Nigerian National Petroleum Company Ltd. recently awarded a multi-billion naira contract for oil pipeline surveillance to a company owned by former Niger Delta militant Government Ekpemudopolo, alias Tompolo. This company sprang into action right away and made shocking discoveries of illegal pipelines syphoning off crude oil products and other instances of pipeline vandalism in the oil-rich region.