According to a Senate report released on Tuesday, Nigeria lost more than $2 billion to oil theft in the first eight months of this year.
Large-scale theft from Nigeria’s pipelines has slowed exports, forced some businesses to halt production, destroyed the nation’s finances, and forced Nigeria to relinquish its position as Africa’s top oil producer.
The effects of the theft were examined by an ad hoc committee of the Senate, Nigeria’s upper house in the national assembly.
Its conclusions were delivered to the Senate as a report, which indicated that just 66% of the country’s oil production could be “effectively secured.”
The remaining 33%, according to the report, was impacted by theft and lost productivity “due to third-party easy access on land terrain.”
“The country has lost over $2 Billion to oil theft between January and August 2022, which lost revenue ordinarily would have supported the country, fiscal deficits and budget implementation,” the report said.
The state-owned oil corporation NNPC Ltd has stated that output is beginning to improve as a result of Nigeria’s coordinated initiatives to combat theft, including contracts with companies run by former militants.