Oil Theft Is Draining Nigeria’s Economy – Speaker, Abbas Laments

The Speaker of Nigeria’s House of Representatives, Hon. Tajudeen Abbas, has decried the growing spate of pipeline vandalism as well as illegal oil bunkering and theft in the country.

Abbas shared his grievances during the inauguration of a Special Ad Hoc Committee created to tackle the problem headlong.

In his address, Abbas stated that oil theft and other oil-related criminalities remain the greatest economic sabotage, leaving the country with dwindling revenue.

Abbas lamented that Nigeria loses over 300,000 barrels of crude oil daily due to theft, vandalism, and other criminal activities.

“Some of the severe consequences of this include revenue loss, environmental disaster, threats to regional peace and security, proliferation of arms, and a poor investment climate.

“The nation is reported to have incurred losses of oil revenues estimated at N1.29 trillion annually due to industrial-scale theft,” he stated.

He stated that the committee’s primary objective was to determine the proximate and remote causes of oil theft and recommend remedial measures to the House.

“Nigeria is facing significant financial challenges due to a combination of rising expenditures and falling revenues. You may recall that the proposed revenue and expenditure for 2023 stand at N9.73 trillion and N20.51 trillion, respectively.

“This means a fiscal deficit of N10.78 trillion, which is about 4.78 per cent of the Gross Domestic Product (GDP). This deficit is the largest in Nigeria’s history, and with a budget more than double the proposed revenue, we are faced with the challenge of borrowing to cover the gap,” he added.