The Group Chief Executive Officer of Oando Plc, Wale Tinubu, said Nigeria’s Gross Domestic Product (GDP) is at risk of losing millions due to the crude oil barrels pumped by oil companies that are lost to sabotage and theft.
Tinubu said the oil industry is reducing its output due to the attacks on pipeline transporting the crude to terminals, and this will cut down the financial contribution of the sector to the GDP.
The businessman said about 20,000 litres are lost daily, making it impossible for Nigeria to produce the 1.4 million quota previously obtained from the Organisation of the Petroleum Exporting Countries (OPEC).
He told attendees at the Nigerian Oil and Gas (NOG) conference and exhibition that based on previous records showing the country has been struggling to meet its quota, Nigeria will be unable to meet the new 1.8 million barrels per day quota.
Tinubu explained that, “There has been a 43% reduction in our production from March 2020 to May 2022. We lose almost 20% of our daily crude production to oil thieves and pipeline vandals and 20,000 barrels a day of oil is lost to oil theft.
“Basically some three million barrels on average yearly is lost to oil theft and pipeline vandalism.”
According to Tinubu, “The Organisation of the Petroleum Exporting Countries (OPEC) gave us a quota of 1.4 million barrels per day and we were struggling to do 1.21 million barrels per day.
“We will get to a quota of 1.8 million very soon because OPEC agreement expires in September. They are easing production by 400,000 barrels per day.” Tinubu said, adding, “We are not meeting the quota and we will not be able to meet it by that September”
His statement is similar to the worries shared by Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, in June, when he said that about N434 billion was lost by Nigeria to oil theft.
Komolafe had stated that over 20 percent of the crude oil produced by Nigeria are stolen by oil thieves. And Tinubu said for the country to bring an end to their activities, the government and stakeholders must collaborate on aerial surveillance.
Oando boss also requested for support relating to on-ground surveillance to enable Nigeria milk the revenue from the oil industry, and cut losses.