In a decisive move, Hon. Tajudeen Abbas, the Speaker of the House of Representatives, inaugurated a Special Ad Hoc Committee yesterday to probe the escalating issue of oil theft, pipeline vandalism, and illegal oil bunkering in Nigeria. This step marks a critical effort by the 10th House to confront one of the country’s most pressing economic challenges head-on.

Addressing the issue, Abbas highlighted the grave economic implications of these criminal activities, which cause Nigeria to lose over 300,000 barrels of crude oil daily. This massive loss, estimated at around N1.29 trillion annually, has far-reaching consequences, including revenue deficits, environmental disasters, regional security threats, and a deteriorating investment climate.

According to a report by This Day Live, Abbas underscored the committee’s mission to identify the root causes of oil theft and develop effective countermeasures. With Nigeria grappling with a significant fiscal deficit of N10.78 trillion for 2023, the largest in its history, addressing this issue has become more critical than ever. Abbas emphasized the need for government revenue-generating agencies to heighten their efforts, doubling their revenue profiles while ensuring efficiency and transparency.

The Speaker’s stern warning against underperformance by these agencies underscores the House’s commitment to strict oversight and compliance. The committee is tasked with a comprehensive investigation, scrutinizing the roles of various actors, including criminal gangs, local communities, corporate employees, and security agencies.

Hon. Alhassan Doguwa, the Committee Chairman, recognized oil theft as a national concern, emphasizing its pervasive threat to Nigeria’s economy and security.

Parallel to these legislative efforts, the Nigerian National Petroleum Company (NNPC) reaffirmed its dedication to combating crude oil theft. Mele Kyari, the Group Chief Executive Officer, represented by CFO Umar Ajiya at a Federation Account Allocation Committee (FAAC) retreat, emphasized NNPC’s zero-tolerance policy towards such criminal activities. He highlighted the success of industry-wide security collaborations in preventing and apprehending illegal operations.

Kyari noted that the Petroleum Industry Act (PIA) 2021 offers an opportunity for NNPC to align with global best practices, focusing on financial integrity and transparency. With over 40% contribution to the national tax revenue, NNPC’s role in bolstering Nigeria’s economy is more significant than ever.

The retreat, themed “Creating Resilient Economy through Diversification of the Nation’s Revenue,” was organized by the Federal Ministry of Finance in collaboration with the Delta State Government, highlighting the concerted efforts across various levels to tackle the challenges in the oil sector.

This initiative by Nigeria’s House of Representatives and the NNPC reflects a comprehensive approach to tackling the persistent issues of oil theft and pipeline vandalism, with the goal of enhancing revenue, investment, and overall socio-economic progress in Nigeria.