Nigeria Loses $7.2M Monthly Due to Illegal Oil Connections, Says NNPC
The Nigerian National Petroleum Company (NNPC) Limited has revealed that Nigeria is losing an average of $7.2 million every month due to illegal oil connections. The state-owned oil firm made this alarming discovery during an inspection of the Owaza community in Abia state, where an illegal connection was found.
According to a video uploaded by NNPC on its Twitter account, the illegal connection was identified on Saturday by a delegation deployed in the Niger Delta by President Bola Ahmed Tinubu to assess the situation of oil theft. During the visit to the Trans-Niger Pipeline Right of Way in Owaza, the team also observed a series of dismantled illegal connections.
Speaking at the site, Mele Kyari, Group CEO of NNPC, emphasized the severe economic losses caused by clandestine refineries, illegal bunkering operations, and environmental devastation. He stressed that while oil theft in vessels can be tracked, it is crucial for oil-bearing communities to play a vital role in curbing these criminal acts within their communities.
The reason why Nigeria cannot meet its OPEC daily production quota is due to oil theft, Kyari stated.
Providing further insights into the oil theft situation in the Niger Delta, NNPC disclosed that 20 illegal pipeline connections were discovered in the past week alone, and 45 illegal refineries were destroyed. Between August 12 and 18, 2023, a total of 116 incidents were recorded across the Niger Delta.
Expressing concern over the implications of oil theft and economic sabotage, Muhammed Badaru, the Minister of Defence, stated that the government is fully committed to achieving peace in the Niger Delta. Badaru called on perpetrators to cease and desist from engaging in crude oil theft and sabotage, which not only pose a threat to the environment and livelihoods but also deprive the nation of crucial revenue.
Nuhu Ribadu, the National Security Adviser, commended the security agencies, community security contractors, and NNPC for intensifying the fight against oil theft and economic sabotage. He stressed the need to protect the environment and preserve livelihoods, as well as the importance of revenue generation to strengthen the economy and stabilize the national currency.
The ongoing battle against crude oil theft is steadily gaining momentum, with industry stakeholders and security collaboration producing encouraging results. The NNPC remains committed to taking decisive action to counter illegal oil connections, safeguard Nigeria’s valuable resources, and protect its economic interests.
In conclusion, the discovery of illegal oil connections in Nigeria has shed light on the significant economic losses the country is facing due to oil theft. With concerted efforts from various stakeholders and increased security measures, the hope is to deter these criminal activities, protect the environment, and ensure the nation can effectively utilize its resources for economic development.
