Oil Theft greatest threat to Nigeria's Economy - Abbas

 

The Speaker of Nigeria’s House of Representatives, Hon. Tajudeen Abbas has established a Special Ad Hoc Committee on oil theft to investigate the growing spate of pipeline  vandalism and unlawful bunkering in the country.

The Speaker, in his address at the inauguration ceremony on Wednesday, November 22 stated the resolve of the 10th House to tackle the problem.

Abbas complained that Nigeria loses over 300,000 barrels of crude oil per day 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.

“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.

“Abass stated that it is for this reason that the House will significantly raise the targets for all government revenue-generating agencies.

“I am convinced these agencies can generate much more than they currently do. In our recent engagement with MDAs on the 2024-2026 MTEF, we have made it clear that a lot more will be required of our key revenue-generating agencies in 2024.

“We expect them to double their total annual revenue profile. However, to achieve this, these agencies must reduce wastage and improve efficiency, especially in collection,” he added.

“Let me state clearly that the House will not tolerate low performance by agencies or failure to show evidence of required remittances to the Federation Account. We shall also closely monitor and undertake strict oversight of the activities of all revenue-generating agencies to ensure compliance.

“I charge you, therefore, to investigate all dimensions of oil theft, focusing on the actions of all actors, including criminal gangs, militia groups, the local populace, company employees and security agencies.

“I urge the members of this committee to approach your mandate with diligence, objectivity, a sense of urgency and patriotism. The findings and recommendations from your work will serve as a foundation for sustainable solutions rather than ad-hoc measures.

“I also expect your efforts to contribute significantly to enhancing the integrity of our oil sector and promoting sustainable development,” he stated.