Abuja— The House of Representatives has voiced serious concerns over the staggering statistics on crude oil theft, highlighting its substantial negative impact on Nigeria’s economy.
Speaker Abbas Tajudeen, speaking through his deputy Hon. Benjamin Kalu, revealed at the House Special Committee on Oil Theft and Losses in Abuja that between January and July 2024, Nigeria lost an average of 437,000 barrels of crude oil per day due to theft, vandalism, and other criminal activities. This loss amounts to over $10 billion at the current oil price.
“The statistics on crude oil theft are very alarming, and its negative impact on the economy is quite monumental,” Kalu stated. He noted that the daily losses due to criminal activities are severely affecting the nation’s revenue.
The speaker emphasized that this significant loss of revenue is not only reducing funds available for national development but is also causing severe environmental degradation, increased insecurity, and the shutdown of many production companies. The reduction in government revenue has led to increased borrowing to cover budget deficits.
Additionally, between 2020 and 2024, the federal government spent $1.5 billion on infrastructure projects, indicating a significant investment aimed at mitigating some of the developmental challenges facing the nation.
The investigation into the illegal lifting of crude oil is part of ongoing efforts to combat this issue and restore stability to Nigeria’s oil sector.
