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Nigeria loses $2.8 billion to oil theft every year

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Christian Fernsby ▼ | June 7, 2019
Nigeria is losing N995.2 billion ($2.8 billion) yearly to the activities of oil thieves, Nigerian Natural Resources Charter (NNRC) has said.
Nigeria oil theft
African economies   Nigeria oil theft
Its Head, Dr Niyi Awodeyi, said the haphazard distribution of national wealth was a reason for the prevalence of this vice.

Speaking to stakeholders from various sub sectors of the oil industry during a sensitisation programme, Awodeyi said the cash lost to crude oil theft could reduce the poverty index of Nigerians.

He said poor governance of oil revenue and corruption, lack of adherence to international best practices by international oil firms, youth unemployment and underemployment were some of the causes of oil theft in the country.

Awodeyi also said the imbalance in the existing federal structure was a factor that has been encouraging corruption which according to him, has also been leading to the disappearance of monies accrued to host communities for developmental purposes.

Quoting a World Bank report which said 80 per cent of total revenue from oil gets to only one per cent of Nigerians, he lamented that this has resulted to inequality with its attendant militancy, kidnapping, illegal oil bunkering and other crimes in the region.