Senate Probes $300bn Crude Oil Losses

The Nigerian Senate has launched an extensive investigation into the alleged loss of over $300 billion in crude oil revenue due to oil theft, pipeline vandalism, and under-declaration of exports over the past decade. The upper legislative chamber said the inquiry aims to identify key perpetrators, plug revenue leakages, and ensure accountability within the nation’s petroleum sector.

The investigation, spearheaded by the Senate Committees on Petroleum (Upstream and Downstream), Gas, and Host Communities, follows a motion raised by Senator Ned Nwoko (PDP, Delta North), who expressed concern that Nigeria has consistently failed to account for billions of dollars in crude exports annually. He said the magnitude of the losses represents a “national tragedy” that undermines economic growth and compromises national security.

Presenting the motion titled “Urgent Need to Investigate the Loss of $300 Billion in Crude Oil Revenue Due to Theft and Under-Declaration,” Senator Nwoko told his colleagues that the menace of crude oil theft has reached an alarming level despite the deployment of security operatives and surveillance contractors to protect pipelines and terminals. He said the country loses about 400,000 barrels of crude daily to illegal bunkering and under-reporting by international oil companies (IOCs).

“Available data suggest that Nigeria has lost more than $300 billion in oil revenue over the last decade. These are funds that could have revitalised our economy, built infrastructure, and reduced our debt burden. It is unacceptable that a country with such vast resources continues to suffer massive losses due to corruption, weak institutions, and poor oversight,” Nwoko stated.

The Senate subsequently resolved to mandate its committees to conduct a thorough probe into all aspects of crude oil production, metering, and export documentation between 2014 and 2024. The committees were also directed to summon key agencies, including the Nigerian National Petroleum Company Limited (NNPCL), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigeria Customs Service, to explain the discrepancies in crude production and export figures.

Senate President Godswill Akpabio, while ruling on the motion, described the alleged losses as “shocking and intolerable,” stressing that the probe would help restore integrity to Nigeria’s oil sector. He said the Senate would work closely with relevant stakeholders to ensure that the nation’s resources are properly accounted for and that those responsible for the massive revenue leakages are brought to justice.

“The Senate cannot sit idly while Nigeria continues to bleed. This is not just about lost revenue; it is about our sovereignty and economic stability. We must uncover where the leakages are coming from and who benefits from them,” Akpabio said.

According to reports presented to the Senate, a significant portion of crude oil theft occurs through illegal tapping points along major pipelines, particularly in the Niger Delta region. The stolen crude is allegedly loaded onto small vessels and sold on the black market, often with the complicity of corrupt officials and international buyers.

The Nigerian Extractive Industries Transparency Initiative (NEITI) had earlier estimated that between 2009 and 2020, Nigeria lost over 619 million barrels of crude oil valued at $46 billion to theft and vandalism. However, independent studies and intelligence reports suggest that the real figure, including unrecorded losses and under-declared exports, could exceed $300 billion when adjusted for current oil prices and exchange rates.

Senator Danjuma Goje (APC, Gombe Central) urged the committees to expand the investigation to include the role of multinational oil firms and export terminal operators, who, he claimed, have long exploited loopholes in Nigeria’s metering and documentation system. “We must determine how much oil leaves our shores, under what terms, and how the proceeds are managed. We can no longer rely solely on figures provided by foreign operators,” he said.

Other lawmakers, including Senators Seriake Dickson (Bayelsa West) and Adams Oshiomhole (Edo North), emphasised the need for modern technology and transparent monitoring systems to track production and exports in real-time. They called for the installation of digital meters at all oil wellheads, flow stations, and export terminals to ensure accurate reporting.

Oshiomhole described crude oil theft as “a form of economic sabotage that has reached an industrial scale,” warning that unless decisive action is taken, Nigeria’s oil wealth will continue to benefit a few criminal networks at the expense of millions of citizens.

In response to the Senate’s motion, the NNPCL said it welcomes any transparent investigation aimed at sanitising the sector. The company’s Chief Corporate Communications Officer, Olufemi Soneye, said the NNPCL has been collaborating with security agencies to curb theft and vandalism while also investing in advanced surveillance systems, including drones and real-time monitoring equipment.

He noted that recent joint operations with the Nigerian Navy and private security firms have led to the discovery and destruction of several illegal refining sites and crude tapping points in the Niger Delta. “We support all efforts to enhance transparency and accountability in the industry. Our operations are now guided by commercial principles, and we remain committed to ensuring that every barrel of oil is properly accounted for,” Soneye stated.

Meanwhile, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) confirmed that it has commenced an audit of crude oil metering infrastructure across the country to identify and seal all unauthorised export points. The Commission’s Chief Executive, Gbenga Komolafe, said the NUPRC would work with the Senate to ensure accurate reconciliation of production and export data.

Industry experts have welcomed the Senate’s intervention, noting that the probe could restore investor confidence and help Nigeria maximise earnings from its crude oil production. Energy analyst Dr. Bala Zakka said the investigation must go beyond rhetoric to produce concrete sanctions. “If the Senate is serious, this could be the beginning of a new era of accountability. But if it becomes another political exercise, the losses will continue,” he warned.

Nigeria currently produces about 1.5 million barrels of crude oil per day, below its OPEC quota of 1.8 million barrels, largely due to theft, pipeline downtime, and underinvestment in infrastructure. Analysts believe that plugging these leakages could boost government revenue by as much as $10 billion annually and help the country stabilise its fiscal outlook.

As the investigation begins, Nigerians and global observers will be watching to see whether the Senate can unearth the truth behind one of the country’s longest-standing economic scandals and deliver lasting reforms to safeguard the nation’s most vital resource.