Crude oil theft may have cost the country a whopping N1.9tn revenue loss in July.

The estimation was arrived at following a pronouncement by the National Security Adviser, Nuhu Ribadu, last week when he led a presidential delegation to inspect oil and gas facilities at Owaza in Abia and Rivers State.

Ribadu said Nigeria was losing 400,000 barrels of crude oil daily due to activities of oil thieves and pipeline vandals.

He added that the country had the capacity to produce 2 million barrels of crude oil per day.

“It is unfortunate that few individuals would steal our common resources, and in the process cause unbelievable loss to the nation, communities and the people,” Ribadu said.

“Nigeria has the capacity to produce two million barrels of crude daily, but we are currently producing less than 1.6 million barrels due to theft and vandalisation of pipelines.’’

“So, we’re talking about 400,000 barrels of crude oil going to waste, with few criminals and economic saboteurs not even getting much out of it,” he said.

Checks on data provided in the August report of the Organization of the Petroleum Exporting Countries showed that the country’s July crude oil production, as provided by direct sources such as the Nigerian National Petroleum Company Limited and the Nigerian Upstream Petroleum Regulatory Commission, was one million barrels per day.

According to OPEC August report, Nigeria’s crude grade, Bonny Light, against which all other crude grades produced by the country were priced, was sold for $80 per barrel in July. The exchange rate against the dollar was also at N777/$1 in July.

This estimation brings total revenue loss to crude oil theft to N1.9tn in July alone.

Punch