President Muhammadu Buhari has been urged to urgently unveil a policy
direction and action his government will take to eradicate oil theft in
the country.
An anti oil theft initiative, Seal the Crude made the call in a statement
by its Programme Officer, Stephen Hemba and released to the media
recently.
Seal the Crude said the problem of oil theft is no longer tolerable
and since it is a recurring issue passed on to the Buhari administration,
the President must waste no time in outlining a policy thrust to address
it.
The statement said such has become necessary due to the economic downturn
bedeviling the country with states not being able to pay workers’ wages
talk less of providing social and development services to Nigerians.
Seal the Crude said: “The President Muhammadu Buhari administration must
approach this menace with a policy direction and action to strategically
address the local and international dimensions of this economic crime,”
adding that, “addressing this problem now puts more money on the table for
the new government, increases its capacity to finance its programs and
improves its image in driving a change and badly needed reforms in the oil
industry. Seal the Crude therefore demands an urgent policy direction and
action from the Buhari administration to eradicate crude oil theft for a
prosperous, secured and healthy Nigeria.”
The statement reads in full: “It is no longer doubtful that crude
oil theft gravely threatens the economic survival of Nigeria. Oil thieves
tap into crude oil pipelines and draw crude away. Sometimes crude oil is
stolen at the export terminals, allegedly facilitated by officials and
security personnel responsible for protecting the exploration
infrastructures. Some of this crude is refined illegally through local
processes across the Niger-Delta and the rest is sold illegally in the
international market. Through this process an estimated 400,000 barrels of
crude oil is lost daily and this translates to Naira value in trillions
yearly.
The theft, transportation, sale and handling of proceeds from this illegal
activity through formal local and global financial institutions without
challenge inspite of security apparati suggest it is a well-coordinated
syndicate collaborated by state officials and international actors. This
unwholesome practice poses a great threat because Nigeria’s economy
largely depends on revenue from the sale of crude oil.
The activities of crude oil thieves deprive the Nigerian people of revenue
to finance development. It is partly responsible for the reduction in the
revenue available to the states according to official sources. Many states
cannot pay salaries of their workforce and obviously cannot provide basic
services like, healthcare, education etc.
Also, proceeds from the sale of stolen crude is used to sponsor criminal
gangs including militant groups, which increase insecurity, and threatens
investment opportunities. The activities of militants and other deviants
may be diversionary and used as decoy to weaken government security
apparatus set up to effectively tackle the crime. It also, creates an
insecure environment within which oil theft thrives.
The breaking of oil pipelines to steal crude spills the oil and further
damages the already degraded environment of the Niger-Delta. This affects
the health and the economic survival of the Niger-Delta communities and
significantly depreciates the nations biodiversity resources.
Efforts by previous Nigerian governments to stop this assault on the
economy and citizens apparently yielded no significant impact. Rather than
the situation abating, it appears to have assumed very disturbing
dimension before the exit of the immediate past government. It has now
been passed on and stares this government in the face.
Something must be done urgently and differently. The President Muhammadu
Buhari administration must approach this menace with a policy direction
and action to strategically address the local and international dimensions
of this economic crime. Addressing this problem now puts more money on
the table for the new government, increases its capacity to finance its
programs and improves its image in driving a change and badly needed
reforms in the oil industry.
Seal the Crude therefore demands an urgent policy direction and action
from the Buhari administration to eradicate crude oil theft for a
prosperous, secured and healthy Nigeria.”