- The Senate select committee investigating crude oil theft has released an interim report alleging huge revenue disparities, including more than £300 billion in domestic crude revenue and more than $200 billion in international sales still unaccounted for.
- The report cited significant gaps, such as an $81 billion gap between NNPCL and CBN crude oil revenue from 2016 to 2017.
- The committee attributed the leaks mainly to deficiencies in the metering system, weak supervision, and specifically blamed the suspension of metering activities in the upstream industry under the PIA.
An interim report from a Senate select committee investigating Niger Delta crude theft revealed huge discrepancies, showing nearly £300 billion in domestic crude revenue and more than $200 billion in international crude sales remained unaccounted for, sparking widespread outrage.
The report details systemic failures, weak oversight and poor coordination that it says led to the massive diversion of Nigeria’s crude oil revenues over several years.
Specific financial differences cited in the report include:
There is an $81 billion gap between the crude oil revenues reported by the Nigerian National Petroleum Corporation Limited (NNPCL) for 2016 and 2017 and those recorded by the Central Bank of Nigeria (CBN).
Sales discrepancies, mismatches and unaccounted funds in domestic crude oil revenues and petroleum tax revenues total approximately $22 billion.
The committee blamed faulty measurement systems, weak oversight and uncoordinated enforcement among government agencies as the main problems. It specifically cited the use of unvalidated measuring instruments and lack of metrological controls as major causes of revenue loss.
The panel specifically faulted the suspension of activities of metrology departments in the upstream sector under the Petroleum Industry Act (PIA) 2021, saying the decision undermines accountability and accurate measurement of crude oil operations. The Commission emphasizes that accurate measurement at the production site and at the export terminal is a critical first step in correctly accounting for all proceeds.
