CSOs: FG can save N6.3trn annually if it stops oil theft

A coalition of civil society organisations (CSOs) says the federal government can save N6.27 trillion yearly if it curbs oil theft in the country.

The CSOs, which include; Actionaid, Centre for Social Justice (CSJ), BudgiT and Christian Aid, spoke at a press conference in Abuja on Wednesday.

Eze Onyekpere, speaking on behalf of the coalition and lead director of CSJ, said the contract, awarded to the ex-militant warlord, Government Ekpemupolo, also known as Tompolo by the Nigerian National Petroleum Company would not solve the problem.

The contract – running into billions of naira – has since caused a stir.

Onyekpere said technology could be used to address the oil theft problem, adding that value should be demanded from the Tompolo contract.

“About 400,000 barrels of crude oil are lost daily. At the current price of crude oil, this translates to $1.2 billion per month and $14.4 billion (N6.272trillion) per annum,” he said.

“This sum when brought into account in the books of NNPC Limited will increase its profit and the dividends to be paid to the government.

“However, from the reports of Nigeria’s August 2022 oil production reported at less than 1 million bpd, the theft may have escalated beyond 400,000bpd.

“The publicised Tompolo N4 billion a month contract may not solve the challenge. Comparative experience and previous budgetary votes show that technology can be deployed to solve oil theft.”