Obasanjo: Over 80% Of Nigeria’s Crude Oil Stolen

Former President Olusegun Obasanjo has brought to light a pressing issue afflicting Nigeria’s oil sector, shedding light on the alarming fact that more than 80% of the country’s crude oil is being stolen, exacerbating its economic challenges.

This revelation emerged during an event held in Abuja, where Obasanjo, represented by former Niger State governor Babangida Aliyu, expressed deep-seated concerns about the perilous state of Nigeria’s economy due to the pervasive issue of oil theft.

Nigeria, being Africa’s largest oil producer, heavily relies on its oil resources, with crude oil exports accounting for over 76% of the country’s total exports in 2021. The extensive theft of such a vital resource not only leads to substantial revenue losses but also undermines the country’s economic stability and growth potential, posing a significant obstacle to its development trajectory.

The extent of the problem is further underscored by the staggering losses incurred by Nigeria between 2009 and 2020, amounting to an estimated 620 million barrels of crude oil valued at a staggering $46 billion. These losses are primarily attributed to illegal refining activities and theft, highlighting the magnitude of the challenge and its far-reaching implications for the national economy.

The causes behind crude oil theft in Nigeria are multifaceted, ranging from the lack of accurate reporting of crude oil production to illicit refining operations, theft from wellheads, and diversion from intricate pipeline networks. This illicit activity not only leads to substantial revenue hemorrhage but also perpetuates a cycle of economic instability and underdevelopment, hindering Nigeria’s progress towards achieving sustainable growth and prosperity.

The impact of oil theft on Nigeria’s economy is further exacerbated by the unprecedented losses in oil revenue recorded over the years. In 2019, 2020, 2021, and 2022, Nigeria incurred losses amounting to $2.1 billion, $1.9 billion, $7.2 billion, and $22.4 billion respectively, underscoring the severity of the situation and its detrimental effects on the country’s already fragile economic landscape.

Addressing the issue of oil theft in Nigeria requires a concerted effort and comprehensive strategies aimed at tackling the root causes of this pervasive problem. This entails strengthening regulatory frameworks, enhancing surveillance and monitoring mechanisms, and fostering collaboration between relevant stakeholders to curb illicit activities across the oil value chain.

Furthermore, there is a pressing need to invest in alternative sources of revenue diversification and economic empowerment initiatives to reduce the country’s over-reliance on oil and mitigate the adverse impact of oil theft on its economy.

In conclusion, the prevalence of oil theft in Nigeria poses a significant threat to the country’s economic stability and development aspirations. Addressing this challenge requires decisive action and sustained commitment from all stakeholders to safeguard Nigeria’s valuable oil resources and foster inclusive and sustainable growth for the benefit of all its citizens.

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