Nigeria Loses $1.84bn in Refinery Theft in 9 Years, Says NEITI Chief
Lagos, Nigeria – The Nigeria Extractive Industries Transparency Initiative (NEITI) has disclosed that the country lost a staggering $1.84 billion worth of petroleum products from refineries over a nine-year period, with oil theft being the primary culprit. This revelation was made by the Executive Secretary of NEITI, Dr. Ogbonnaya Orji, during the 2024 NEITI board retreat/meeting in Lagos.
According to Orji, between 2009 and 2018, Nigeria lost 4.2 billion litres of petroleum products from refineries due to oil theft, estimated at 140,000 barrels per day. The figure translates to 619.7 million barrels valued at $46.16 billion or N16.25 trillion over a 12-year period.
Orji lamented the increasing rate of oil theft, citing the need for immediate action to prevent further losses. He called on the current administration to implement the recommendations contained in a report prepared by NEITI, which outlines strategies to stop oil theft in Nigeria.
The NEITI boss also expressed concerns about the global shift towards renewable energy, which poses significant risks to countries like Nigeria that heavily rely on hydrocarbon-based natural resource revenues for survival. Orji warned that Nigeria’s economy is already being threatened by the prospect of a permanent decline in global demand for crude oil, with the demand for oil declining daily.
Lagos State Governor, Babajide Sanwo-Olu, echoed Orji’s sentiments, urging the review of existing laws governing oil and mineral resources in the country. Sanwo-Olu stated that re-examining these laws would facilitate the Ease of Doing Business policy and promote investments in the extractive industry.
As Nigeria transitions towards a low-carbon economy, the country’s energy sector is likely to undergo significant changes. According to Orji, this shift would require significant financial investment to generate renewable energy, which would be an additional burden on the already strained energy sector.
With oil theft and energy transition being major challenges, it remains to be seen how Nigeria will address these issues to ensure a sustainable and transparent extractive industry.
