Nigeria has lost an astounding 362.28 million barrels of crude oil over the past decade due to measurement errors, sabotage, and production adjustments, according to a new report from the Nigeria Extractive Industries Transparency Initiative (NEITI). This represents a daily loss of approximately 992,547 barrels between 2014 and 2023.
The report, titled *”Oil & Gas Industry Audit 2023″*, highlights that these losses stem from a combination of factors, including oil theft, pipeline sabotage, and operational inefficiencies. The most significant loss was recorded in 2016, with 101.6 million barrels stolen or wasted, amounting to a daily loss of 278,356 barrels. This resulted in a potential revenue loss of $4.6 billion for that year alone, as crude oil averaged $46.07 per barrel.
NEITI also detailed a steady increase in crude losses over the years, peaking in 2016 but seeing a significant drop in recent times. In 2023, crude oil losses fell to 7.68 million barrels, a sharp 79% reduction from the 36.69 million barrels lost in 2022. This improvement is attributed to government initiatives aimed at curbing oil theft and enhancing operational efficiency within the sector.
The report points to outdated and corroded pipelines as a major contributing factor to the losses. Much of Nigeria’s oil infrastructure has not been modernized, making it vulnerable to theft and sabotage. In response, NEITI urged the government to consider advanced digital solutions and public-private partnerships to monitor and reduce future crude oil losses.
NEITI’s recommendations include a forensic audit of wellheads and production platforms to enhance accountability and production capacity. Additionally, the agency called for the creation of a dedicated database to track cases of oil product losses and suggested setting up a special fund and standby committee to respond swiftly to oil asset security issues.
The losses outlined in the report represent a substantial drain on Nigeria’s economy, particularly considering the nation’s heavy reliance on oil revenue. NEITI’s findings serve as a call to action for the government to improve the security and efficiency of its oil production and distribution processes, ensuring that future losses are minimized and Nigeria can better leverage its natural resources.
