Senate Flags Over $300bn Crude Losses, Extends Probe on Oil Theft

The Senate has raised fresh alarm over massive financial losses linked to crude oil theft, following an interim report submitted on Wednesday by its Ad Hoc Committee investigating illegal bunkering and unaccounted petroleum exports.

The committee, chaired by Senator Ned Nwoko (Delta North), was set up earlier in the year to examine long-standing oil theft operations in the Niger Delta and probe alleged compromises within regulatory, security, and export monitoring systems.

Presenting its findings, Nwoko said the committee uncovered major gaps in measurement, oversight, and enforcement, which have enabled large-scale diversion of crude over the years. Data reviewed by the committee’s consultants reportedly indicates that more than $300bn worth of crude proceeds remain untraced, including $22bn, $81bn, and $200bn in separate audit periods.

The committee recommended stricter crude metering standards by the Nigerian Upstream Petroleum Regulatory Commission at production sites and export terminals, the deployment of modern surveillance tools, including drones, and the establishment of a Maritime Trust Fund to bolster security and inter-agency intelligence-sharing.

It also proposed special courts to try oil theft cases and immediate enforcement of the Host Communities Development Trust Fund under the Petroleum Industry Act, alongside handing over abandoned oil wells to regulators for proper monitoring.

However, the proposal that the Senate should track and recover stolen funds sparked debate.
Senator Abdul Ningi (Bauchi Central) and Appropriations Committee Chairman Solomon Adeola argued that while the legislature can document and trace losses, recovery falls under executive and anti-graft agencies such as the EFCC and ICPC. Both lawmakers requested more detailed data, including specific companies and locations linked to the losses.

Senator Ibrahim Dankwambo (Gombe North) added that the final report must identify all individuals and entities involved, noting that the scale of the theft suggests “a coordinated network.”

Senate President Godswill Akpabio praised the committee’s progress but agreed that recovery of funds is outside the Senate’s mandate. He described the estimated losses as “staggering”, stressing that the chamber expects full accountability when the final report is submitted.

The Senate adopted the interim report and directed the committee to continue the investigation and return with a comprehensive final submission, including detailed data, named actors, and recommended enforcement steps.

Oil theft has continued to undermine Nigeria’s production output for decades, with estimated losses of 200,000 to 400,000 barrels per day, contributing to revenue shortfalls, withdrawal of major oil companies from onshore operations, and weakened foreign exchange earnings.