The Nigerian Senate has raised fresh alarm over what it described as “staggering and systemic losses” in the nation’s oil sector, estimating that Nigeria may have lost over $300 billion in unaccounted crude oil proceeds over the years due to widespread theft, collusion, and weak regulatory oversight.
The revelation came on Wednesday as the Senate Ad Hoc Committee on Oil Theft, chaired by Senator Ned Nwoko (Delta North), submitted its interim report during plenary. The committee was established to investigate crude oil theft, illegal bunkering, and sabotage across the Niger Delta — a crisis that continues to undermine Nigeria’s oil output and revenue generation.
Presenting the findings, Nwoko revealed that the committee discovered “systemic irregularities, poor measurement practices, and weak enforcement mechanisms” across the petroleum industry, resulting in vast financial leakages.
“The Ad-hoc Committee should be mandated to track, trace, and recover all proceeds of stolen crude oil transactions both locally and internationally, as forensic analysis by consultants indicates over $22bn, $81bn, and $200bn remain unaccounted for,” Nwoko stated.
The interim report — a 40-page document — outlined urgent reforms, including stricter enforcement of global oil measurement standards by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the use of unmanned aerial vehicles for pipeline surveillance, and the creation of a Maritime Trust Fund to strengthen inter-agency security operations.
The committee also proposed setting up special courts for prosecuting oil thieves, ensuring full implementation of the Host Communities Development Trust Fund under the Petroleum Industry Act (PIA), and transferring abandoned wells to NUPRC for proper management.
However, the proposal for the Senate to lead the recovery of stolen funds stirred debate on the floor.
Senator Abdul Ningi (Bauchi Central) commended the report but maintained that the Senate lacked the constitutional power to recover funds directly.
“We can track and trace, but recovery lies with agencies such as the EFCC or ICPC,” he said, citing forensic data showing revenue shortfalls of $81bn between 2016 and 2017 and an additional $200bn in recent years.
Senator Solomon Adeola, Chairman of the Appropriations Committee, and Senator Ibrahim Dankwambo (Gombe North) supported the call for more granular data, including the names of companies, operators, and specific oil blocks involved.
Senator Enyinnaya Abaribe (Abia South) advised caution, noting that the findings remain preliminary and would require thorough verification before implementation.
In his remarks, Senate President Godswill Akpabio praised the committee for its “courageous and detailed work” while emphasizing that the recovery of stolen oil revenues falls under executive agencies.
“Our duty is to track and trace — recovery is for the executive. Nonetheless, this $300bn loss is staggering, and we will demand full accountability,” Akpabio declared.
The Senate unanimously adopted the interim report and directed the committee to continue its investigation, expand its data collection, and identify all key actors before submitting a final report in the coming weeks.
Crude oil theft — a long-standing economic threat in the Niger Delta — has drained Nigeria’s finances for decades. Experts estimate that between 200,000 and 400,000 barrels of oil are lost daily through theft, vandalism, and illegal exports, costing the nation billions in revenue and forcing international oil firms to scale back onshore operations.
Despite repeated government interventions — from military task forces to private surveillance contracts — oil theft remains one of the most entrenched criminal enterprises in Nigeria’s extractive industry.
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