Thursday, November 6, 2025 - The Senate on Wednesday received the interim report of its Ad Hoc Committee investigating crude oil theft in the Niger Delta, amid fresh concerns that Nigeria may have lost more than $300bn in unaccounted crude proceeds over the years due to alleged collusion, poor industry oversight, and entrenched sabotage networks.
The committee, chaired by Senator Ned Nwoko (Delta North),
was set up earlier this year to probe the persistent theft of crude oil,
bunkering operations, illegal export networks, and alleged compromises within
regulatory and security systems — a crisis long blamed for dwindling production
and Nigeria’s failure to meet OPEC output quotas.
Presenting the interim findings, Nwoko disclosed that the
committee uncovered “systemic irregularities, poor measurement standards, and
weak enforcement” across the petroleum value chain.
The preliminary document, which runs into about 40 pages,
lays out proposed reforms and urgent actions. “We are proposing to go straight
to the recommendations as the full report is voluminous,” Nwoko said.
“The committee, after extensive assessment, recommends that
the Nigerian Upstream Petroleum Regulatory Commission should strictly enforce
internationally accepted crude oil measurement standards at all production
sites and export terminals.”
The report further advised the Federal Government to equip
security agencies with modern surveillance technology, including unmanned
aerial vehicles, to monitor pipelines and export routes. It also called for the
establishment of a Maritime Trust Fund to enhance maritime security,
infrastructure, and inter-agency intelligence operations.
Other recommendations include the establishment of special
courts to prosecute crude oil thieves, full implementation of the Host
Communities Development Trust Fund under the Petroleum Industry Act, and the
handover of abandoned wells to the NUPRC for proper management and utilization.
However, the recovery proposal sparked immediate debate.
Senator Abdul Ningi (Bauchi Central) praised the report as “detailed and
commendable,” but maintained that direct recovery of stolen funds exceeds the
powers of the legislature.
“We can track and trace, but recovery is beyond the powers
of the Senate. The committee should specify losses, locations, and report back
for referral to agencies such as the EFCC or ICPC,” he said.
Ningi noted that consultant data referenced in the report
showed revenue shortfalls of $81bn between 2016 and 2017, and an additional
$200bn in unaccounted proceeds from 2015 to date.
Appropriations Chairman Senator Solomon Adeola backed
Ningi’s position. “The committee should provide more details — names of
companies, figures, and locations — before any further steps are taken,” he
added. “It is not the role of the Senate to recover funds; that lies with
appropriate agencies.”
Senator Ibrahim Dankwambo (Gombe North) insisted that the
final report must clearly identify all “actors” involved. “The title of the
report includes ‘the actors,’ so we must know who they are. It is a complex web
involving companies, individuals, and illegal refineries,” he argued. “We need
well-by-well and rig-by-rig data.”
Senator Enyinnaya Abaribe (Abia South) urged caution, noting
that the document remains an interim submission.
Senate President Godswill Akpabio commended the committee’s
“thorough and courageous work” but aligned with colleagues who argued that
recovery of stolen oil and funds falls under executive agencies.
“Our duty is to track and trace. Recovery is a separate
mandate handled by government agencies. Nonetheless, we encourage the committee
to continue its work and present a final, comprehensive report,” Akpabio said.
He described the estimated $300bn loss as “staggering,”
warning that the Senate would insist on full accountability.
The Senate subsequently adopted the interim report and
directed the committee to continue its investigation and return with a final
submission containing expanded data, named actors, and actionable steps. The
final report is expected in the coming weeks.
Crude oil theft in the Niger Delta has persisted for more
than two decades, fueled by a mix of militia networks, illegal refineries
tucked deep into mangrove swamps, collusion involving security personnel, and
questionable export documentation practices at terminals.
Nigeria, which relies on crude exports for over 80 per cent
of its foreign exchange earnings, often loses about 200,000–400,000 barrels per
day to theft and pipeline vandalism — according to both government data and
industry estimates.
This persistent sabotage has caused international oil
companies to abandon onshore operations, forced production cuts, and pressured
the naira due to weakened revenue inflows. Several government interventions —
from military task forces to pipeline surveillance contracts — have struggled
to stem the problem.
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