The Nigerian National Petroleum Corporation (NNPC) has raised a red flag on the growing issue of oil theft, calling it a major threat to Nigeria’s economic stability and security.
The Corporation outlined its ongoing challenges including oil theft, emphasizing the urgent need for collective action to tackle this issue, which poses a significant threat to Nigeria’s economy.
Speaking at a stakeholders engagement and capacity building for journalists, Chief Corporate Communications Officer, (CCCO), Nigerian National Petroleum Company, (NNPC) Ltd, Femi Soneye has stressed that oil theft has become a major problem, one that requires the nation’s attention and decisive action.
“If we don’t address the issue of oil theft, Nigeria is in serious trouble,” the officer stated emphatically, drawing attention to the stark reality that oil theft not only threatens national revenue but also undermines security.
Soneye recalled an incident from November last year, where a vessel caught with stolen crude oil was seized, only for the same vessel to be found engaging in similar activities a few months later.
He used the incident to highlight the low prosecution rate less than 2% for those involved in oil theft, despite over 2,500 arrests
On the growing scrutiny, with questions being raised about its decision to engage private security firms to protect national assets he clarified that the decision was necessary due to the scale of the challenge.
“No country in the world relies on non-state actors to protect national assets, but we had no choice,” he explained, noting that at one point, Nigeria’s production levels dropped below 900,000 barrels a day, leading the NNPC to partner with community leaders and private security firms to restore production.
“This collaboration has helped to raise production to approximately 1.6-1.7 million barrels per day, thanks to the combined efforts of the private security companies and the military.” However, he emphasized that more needs to be done to combat the oil theft crisis, as the problem is deeply rooted in organized crime that involves entire communities, including religious institutions and local leaders.
Soneye shared a personal account of an oil-related fire that had raged for months due to the actions of local warlords who blow up pipelines to steal oil, causing significant environmental damage and costing the NNPC millions of dollars to address.
“This issue is not just about oil theft. It is about the very survival of our national economy,”He reiterated.
In addressing questions about the high cost of doing business in Nigeria, the NNPC pointed out that companies charge Nigeria significantly more than other countries due to security risks. “If a company charges $1 million in Saudi Arabia, they will charge $4 million in Nigeria because of the cost of securing personnel and operations,” Soneye said, emphasizing how oil theft, kidnapping, and sabotage inflate operational costs and discourage investment.
The NNPC he said is also committed to greater transparency and accountability, noting its transformation from a corporation to a private company.
He highlighted recent actions aimed at increasing openness, such as disclosing the price of pms purchased from Dangote Industries. Despite facing criticism for this transparency, the NNPC remains committed to ensuring Nigerians have access to the truth.
In conclusion, the NNPC urged the media and the public to play a role in raising awareness about the devastating impact of oil theft on Nigeria’s economy and security.
The corporation reiterated its commitment to addressing the challenge head-on and called for continued collaboration between the government, security agencies, and the private sector. “We need all hands on deck to protect Nigeria’s future,”