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HomeTop NewsNigeria loses 95% of petroleum output to oil theft cartel ~Elumelu

Nigeria loses 95% of petroleum output to oil theft cartel ~Elumelu

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By Oludare Mayowa

The Chairman of United Bank for Africa (UBA) Plc and founder of Heirs Holdings, Tony Elumelu on Thursday attributed the reason Nigeria has been unable to meet its OPEC crude oil quota and benefit from high oil prices largely to oil theft in the Niger Delta region

Elumelu, who took to his Twitter handle to lament the prevailing economic condition in the country said he listened to his colleagues at the office bemoan the pressing issues they face in the country which include no electricity for five days, hikes in the price of diesel, frightening food inflation, and many others. 

According to him, the country is losing 95 percent of oil production to thieves. “Look at the Bonny Terminal that should be receiving over 200k barrels of crude oil daily, instead it receives less than 3,000 barrels, leading the operator @Shell  to declare force majeure.

“Why are we paying taxes if our security agencies can’t stop this? It is clear that the reason Nigeria is unable to meet its OPEC production quota is not because of low investment but because of theft, pure and simple!”

Nigeria has consistently failed to meet its crude oil production quota as allocated by the Organisation of Petroleum Exporting Countries (OPEC) in the last two years.

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While the oil cartel allocated 1.7 mbpd quota to Nigeria, the country has been hobbled by twin challenges of oil theft and low investment in the petroleum industry by Intenational Oil Companies (IOCs) operating in the country with an average production level of 1.32 mbpd recorded in the first two months of this year.

Elumelu, who is also the founder of Tony Elumelu Foundation (TEF) , wondered why a country that is so rich in natural resources, has 90 percent of its citizens living in hardship and poverty. 

“I have often said that access to electricity is critical for our development, alleviation of poverty and hardship. And speaking of security, our people are afraid!

“Meanwhile, oil producing countries are smiling as their foreign reserves rising. What is Nigeria’s problem? We need to hold our leaders more accountable! Elections are coming – security and resources need to be everyone’s agenda – let’s be vocal for our nation’s priority.

“Evil prevails when good people are silent. We need to be vocal about 2023. Let’s focus on Nigeria. Demand and advocate for leaders that deliver. In 2023, Nigeria must be on a strong trajectory for progress and development,” Elumelu wrote on his Twitter handle.

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