The Special Investigative Panel on Oil Theft/Losses in Nigeria has submitted its report to the National Security Adviser, Maj. Gen. Babagana Monguno (retd.), in Abuja. The Head of Strategic Communication, Office of the National Security Adviser, Mr. Zakari Usman, confirmed in a Tuesday statement that the report was delivered on Monday.
While presenting the report, the panel’s chairman, Maj. Gen. Barry Ndiomu (retd.), noted that the panel engaged key stakeholders from both within and outside the oil and gas industry. These stakeholders included representatives from state governments, ministries, departments and agencies, security agencies, regulatory bodies, international and indigenous oil companies, traditional institutions, host communities, and artisanal refiners, among others. The panel received and reviewed numerous memoranda and reports on oil theft and losses during these engagements.
The panel observed that crude‑oil losses stem from several factors: inadequate reporting of crude‑oil production, illegal refining, theft at well‑heads, and diversion from the sophisticated pipeline network. It also attributed losses to the absence of a robust, industry‑wide metering system and an ineffective security arrangement. Additionally, confusing roles among regulatory agencies were cited as a major obstacle to detecting theft and losses.
The chairman emphasized that prompt implementation of the report would have an immediate impact on crude‑oil production levels, helping Nigeria meet OPEC’s quota, while also attracting foreign direct investment and addressing the country’s economic and national‑security concerns. Upon receiving the report, the NSA thanked the panel for adhering to the timeline and for addressing oil theft and losses comprehensively. Monguno assured that the government would study the report and prioritize the immediate implementation of its short‑term recommendations.
The News Agency of Nigeria reported that the NSA inaugurated the investigative panel on 6 December 2022, assigning it extensive terms of reference to investigate all aspects of crude‑oil theft and losses in their entirety. The panel was given ten weeks to complete its assignment, effective from the date of inauguration.
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