Posted on Thu 7 Nov 2019, 10:23 AM

The Nigeria Extractive Industries Transparency Initiative (NEITI) has said that Nigeria lost about $42 billion to crude theft as well as domestic and refined petroleum products losses between 2009 and 2018.

This is according to the latest edition NEITI’s Policy Brief titled “Stemming the Increasing Cost of Oil Theft to Nigeria” published Wednesday in Abuja.

In its brief, the NEITI gave a detailed breakdown of what the nation had lost including $38.5 billion on crude theft alone and $1.6 billion on domestic crude and another $1.8 billion on refined petroleum products.

NEITI also stated that Nigeria loses an average of $11 million daily, $349 million in a month and about $4.2 billion annually to crude and product losses arising from stealing, process lapses and pipeline vandalism.

These loses were blamed on the failure of the Nigerian government to adopt the oil fingerprinting technology as well as the lack of qualitative metering instruments at the various facilities across the country.

The report states that oil theft, pipeline vandalism and other criminal activities have deeply affected the lives of people living within the environments where oil facilities are mounted.

In recommending solutions to oil theft across Nigeria, NEITI said adequate legal sanctions should be handed anyone found wanting or involved in oil theft and other oil related crimes.

Deployment of modern technology to tackle oil leakages was also proffered.

It further disclosed that what the country lost in 20 months in fiscal terms was enough to finance the proposed budget deficit for 2020; in 15 months to cover total proposed borrowing or increase capital budget by 100 per cent
It added also that it could in five months cover pensions, gratuities and retirees’ benefits for 2020.

“In terms of volume, 138.000 barrels of crude oil were lost every day for the past 10 years, representing seven per cent of average production of two million BPD.

” Nigeria lost more than 505 million barrels of crude oil and 4.2 billion litres of petroleum products between 2009 to 2018.

NEITI said this amount to 41.9 billion dollars loss to stolen and refined crude oil products in ten years.

 

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