Massive financial discrepancies amounting to about $303 billion in proceeds is alleged stolen from crude oil transactions, both locally and internationally.
This is according to the Senate Committee Investigating Incessant and Nefarious Acts of Crude Oil Theft in the Niger Delta where it stated that forensic reviews by its consultants revealed that over $22 billion, $81 billion, and $200 billion remain unaccounted for in separate crude oil sale records.
Presenting the interim report during Wednesday plenary, the committee Chairman, Ned Nwoko said the findings exposed deep rooted discrepancies in Nigeria’s oil export system and significant revenue losses due to the diversion of crude oil proceeds.
Lawmakers, during deliberations, urged the consultants who conducted the forensic review to name individuals and entities involved in the alleged theft, with a view to recovering the missing funds.
The Senate directed Nwoko’s committee to continue its investigation and produce a comprehensive final report that would enable referrals to relevant anti-graft agencies for prosecution.
Among the committee’s recommendations is the establishment of a special court to promptly prosecute crude oil thieves and their collaborators.
According to the report, a document submitted by E.J. Agbonayinma, a consultant to the committee, showed a shortfall of $81 billion between crude proceeds declared by the NNPC and DPR from 2016 to 2017, and what was actually received by the Central Bank of Nigeria, CBN.
The forensic analysis further uncovered that between 2015 and 2024, over $200 billion worth of crude oil sales proceeds were unaccounted for in transactions traced to both local and international oil markets.
The report also revealed large-scale fraud under the Direct Sale Direct Purchase, DSDP programme of the NNPC Limited, where billions of dollars’ worth of crude oil meant for domestic refining and tax remittances were allegedly diverted or stolen.
For instance, in 2017, 27% of domestic crude valued at over $1 billion was reportedly stolen, while 68% of tax oil valued at $844 million was diverted.
By 2019, crude oil theft had worsened, with 44.7% of domestic crude and 40% of tax oil proceeds unaccounted for.
MUST READ:Senate uncovers N16bn illegally stuck in 2022 budget
The committee also discovered over 10 foreign joint venture accounts in Naira and U.S dollars, some held overseas, through which proceeds of crude oil sales were allegedly diverted.
Further findings implicated 16 companies operating in the Niger Delta in what the they described as a web of technical manipulation, collusion, and revenue leakage.
The committee noted that weak surveillance systems, human interference, and lack of coordination among security and regulatory agencies have worsened crude oil theft and revenue loss in the sector.
It also proposed a federal framework for recovering seized and forfeited crude oil through transparent sales channels, in collaboration with agencies such as the Nigerian Navy, Joint Task Force, NUPRC, and the EFCC.
Following debate on the interim report, the Senate resolved to send the document back to the committee for further investigation, with a mandate to identify all actors involved and provide evidence that will aid recovery and prosecution.
(Editor: Terverr Tyav)
