The Nigerian Senate has revealed massive discrepancies in the nation’s crude oil sector, uncovering about $303 billion allegedly lost to theft and diversion in both local and international transactions.
The discovery was made by the Senate Committee Investigating Incessant and Nefarious Acts of Crude Oil Theft in the Niger Delta, chaired by Senator Ned Nwoko, during the presentation of its interim report at Wednesday’s plenary.
According to the committee, forensic audits conducted by its consultants showed that $22 billion, $81 billion, and $200 billion were unaccounted for in separate crude oil sale records.
Nwoko said the findings exposed deep-rooted corruption and irregularities in oil export data, revenue remittances, and proceeds management, urging that all individuals and companies involved be identified and prosecuted.
He also disclosed that a report submitted by consultant E.J. Agbonayinma revealed an $81 billion shortfall between figures declared by the NNPC and the Department of Petroleum Resources (DPR) from 2016 to 2017, compared to what was actually remitted to the Central Bank of Nigeria (CBN).
The forensic analysis further indicated that between 2015 and 2024, more than $200 billion worth of crude oil sales proceeds were missing from records in both domestic and international markets.
The report also uncovered 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 remittance were diverted.
For instance, in 2017, 27% of domestic crude valued at over $1 billion was allegedly stolen, while 68% of tax oil worth $844 million was diverted. By 2019, crude oil theft had worsened, with nearly half of domestic and tax oil proceeds unaccounted for.
The committee said it also discovered more than 10 foreign joint venture accounts in both naira and U.S. dollars — some held abroad — used to divert proceeds from crude oil sales. Sixteen companies operating in the Niger Delta were allegedly linked to the network of manipulation and collusion responsible for the losses.
The Senate has now directed Nwoko’s committee to continue its investigation and submit a comprehensive final report that will enable the referral of culprits to relevant anti-corruption agencies for prosecution.
Among its recommendations are the creation of a special court for crude oil theft cases and the establishment of a federal framework for recovering stolen crude through transparent sales, in collaboration with the Navy, EFCC, NUPRC, and other agencies.
Lawmakers decried weak surveillance systems, human interference, and poor coordination among regulatory and security agencies as major enablers of the theft, urging urgent reforms to plug the leakages and recover stolen assets.
