Crude Oil Theft
By Abdulsalam Mahmud,
The fight against the smuggling of petroleum products out of the country is about taking a new dimension; one which the Nigeria Customs Service, NCS, will spearhead warts and all.
Statutorily a law enforcement focusing on revenue generation, the NCS has joined the combat fray, with full readiness to battle economic saboteurs to a stand still. Though less violent, the crime of crude oil theft and ‘shipping’ out of petroleum products from our shores to other countries illegally, has caused toxic havoc to Nigeria economically.
“Authorities say more than $3.3bn (£2.9bn) has been lost to crude oil theft since last year and at a time when other oil producers are having a petrodollars splurge, Nigeria can’t even meet its production quota,” part of an investigative story published by the BBC in 2022 reported. A Nigerian tabloid equally said (almost at the same time) that: “According to industry sources, Nigeria loses around 200,000 barrels of crude to oil thieves, vandals and illegal refining operators daily”.
Last November, the Federal Government revealed that more than N4.3trn worth of crude oil was stolen in 7,143 pipeline vandalism cases. This was within a period of five years.
FG disclosed this at a conference organised by the Pipeline Professionals Association of Nigeria. The event was themed: “Bolstering Regulations, Technology and Security for Growth”.
In his presentation at the event, Dr. Ogbonnaya Orji, the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative, noted that oil theft and losses in Nigeria had become a national emergency.
Orji said oil theft is an emergency that posed a serious threat to oil exploration and exploitation with huge negative consequences on economic growth, business prospects and profit earnings by oil companies.
Providing data from their NEITI’s reports to back his claims, he said: “NEITI disclosed that in the last five years, 2017 to 2021, Nigeria recorded 7,143 cases of pipeline breakages and deliberate vandalism resulting in crude theft and product losses of 208.639 million barrels valued at $12.74m or N4.325tn. For instance, NEITI has put in the public domain empirical data of oil theft and losses at 619.7 million barrels of crude, valued at $46.16bn or N16.25tn between 2009 and 2020.
“In addition, Nigeria lost 4.2 billion litres of petroleum products from refineries, valued at $1.84bn at the rate of 140,000 barrels per day, from 2009 to 2018. Thus, the total value of crude losses between 2009 and 2020 is higher than the size of the country’s foreign reserves and almost 10 times Nigeria’s oil savings in Excess Crude Account”.
Taking all of the above and others more into account, the Customs Service, some weeks ago launched a new combat exercise codenamed: Operation Whirlwind, aimed at combating the smuggling of petroleum products from Nigeria to neighbouring countries.
The Comptroller General of Customs, CGC, Bashir Adewale Adeniyi, however inaugurated a workshop for officers of the tactical team, Penultimate Wednesday. The inauguration of Operation Whirlwind marks a significant step in Nigeria’s fight against smuggling and economic sabotage.
The workshop, held at the Nigeria Customs Command and Staff College (NCCSC), was designed to equip the Operation Whirlwind team with the skills and knowledge necessary to effectively curb smuggling, particularly of petroleum products diverted to neighbouring countries.
As the team prepares to embark on their mission, Adeniyi asserts that the expectation is clear: to protect Nigeria’s economic interests with unwavering dedication and integrity.
The Customs’ helmsman, while speaking at the event, emphasised the crucial role the team will play in protecting the nation’s economy from the adverse effects of smuggling petroleum products.
“Economic saboteurs must be brought to justice,” he declared. “Over the years, we have rebuilt the service to an enviable height, our revenue is increasing, and our targets have also increased. However, if we are not significantly impacting the Nigerian economy, then we must do better.”
CGC Adeniyi highlighted the significance of the workshop and the strategic importance of the new operation. “This is not a task force or the setting up of checkpoints,” he clarified.
“This is an intelligence-driven operation that will support the political will at the highest level. Our dedication and loyalty must not be compromised. There will be serious consequences against whoever acts against this mission. There is zero tolerance for sabotage.”
Adeniyi stressed the need for collaboration and unity among the officers. “You were selected because you can do the job. Your coordinator’s record is impeccable, and your assignment can’t succeed without you working as a team. You are to complement the existing structure. You are not going as competitors; you are going to fight people sabotaging our efforts.”
Also at the inauguration ceremony, the Director of Legal Services at the Nigeria Customs, educated the team on the proper procedures for filing seizures, in order to ensure that all legal aspects of their operations are handled correctly.
There is nothing that can prevent Operation Whirlwind from achieving its clear-cut objectives insofar the management of the Nigeria Customs deploy the best of its officers and personnel to prosecute the operation, in a professional, diligent but ruthless manner.
However, the NCS should first ensure that the men of their Operation Whirlwind are properly trained, and imparted with the requisite fighting skills of checkmating oil thieves, vandals and smugglers, who often carry out their heinous operations ruggedly.
Next is to ensure that the operatives of the newly-launched special operation are adequately motivated with good welfare incentives, and sophisticated ammunition that will neutralize their adversaries’ firepower. It will be foolhardy launching a war against enemies of the state, who are already formidable and courageously fearless in executing their unwholesome plots.
Mahmud is the Deputy Editor of PRNigeria, and wrote in via: [email protected].
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