ANALYSIS: How Nigeria Lost $10 Billion From Crude Oil Theft In Seven Months
Last week, NNPCL Group Managing Director, Mele Kyari, headlined the State House press conference, expressing concern over the threat of oil theft that is undermining Nigeria's production and, therefore, its fiscal capacity.
Mr. Kyari accused various sections of Nigerian society of being complicit in the theft of millions of barrels of crude oil, even mentioning that makeshift pipelines and stolen fuel have been found in churches and mosques.
Between January and July, Africa's largest oil producer lost an average of 437,000 barrels of oil per day to criminal entities and individuals who illegally operate onshore and offshore pipelines in the region. Niger Delta, according to PREMIUM TIMES data analysis.
At current prices, the stolen oil is worth over $10 billion, which equates to 4.3 trillion naira (at 430 naira to the dollar). This financial loss represents more than 50% of Nigeria's external reserves. It is also more than double Nigeria's total revenue between January and April, a period when Nigeria's total revenue was unable to service its debt and the country had to borrow for everything else, including payment of workers.
Nigeria's production fell in the first seven months of the year to around 1.1 million barrels per day of crude equivalent in July, from over 1.4 million barrels in January, data shows obtained from the Organization of the Petroleum Exporting Countries (OPEC).
The average quota set by OPEC for Nigeria is 1.73 million barrels per day during the period.
The Nigerian government has blamed its low production on large-scale theft of crude oil and sabotage of pipelines. This damage reduced exports, forced some companies to stop production and crippled the country's fiscal stability.
For the first time since 2015, the world is in the midst of a sustained oil boom, but Africa's top producer is not reaping the benefits. Escalating geopolitical tensions in Eastern Europe pushed crude oil prices to an average of $112 per barrel in the first half of 2022.
Last week, NNPCL Group Managing Director, Mele Kyari, headlined the State House press conference, expressing concern over the threat of oil theft that is undermining Nigeria's production and, therefore, its fiscal capacity.
Mr. Kyari accused various sections of Nigerian society of being complicit in the theft of millions of barrels of crude oil, even mentioning that makeshift pipelines and stolen fuel have been found in churches and mosques.
Between January and July, Africa's largest oil producer lost an average of 437,000 barrels of oil per day to criminal entities and individuals who illegally operate onshore and offshore pipelines in the region. Niger Delta, according to PREMIUM TIMES data analysis.
At current prices, the stolen oil is worth over $10 billion, which equates to 4.3 trillion naira (at 430 naira to the dollar). This financial loss represents more than 50% of Nigeria's external reserves. It is also more than double Nigeria's total revenue between January and April, a period when Nigeria's total revenue was unable to service its debt and the country had to borrow for everything else, including payment of workers.
Nigeria's production fell in the first seven months of the year to around 1.1 million barrels per day of crude equivalent in July, from over 1.4 million barrels in January, data shows obtained from the Organization of the Petroleum Exporting Countries (OPEC).
The average quota set by OPEC for Nigeria is 1.73 million barrels per day during the period.
The Nigerian government has blamed its low production on large-scale theft of crude oil and sabotage of pipelines. This damage reduced exports, forced some companies to stop production and crippled the country's fiscal stability.
For the first time since 2015, the world is in the midst of a sustained oil boom, but Africa's top producer is not reaping the benefits. Escalating geopolitical tensions in Eastern Europe pushed crude oil prices to an average of $112 per barrel in the first half of 2022.
What's Your Reaction?
