The Nigeria Extractive Industries Transparency Initiative (NEITI) has thrown its weight behind the decision of the federal government to set up a ‘Special Investigative Panel on Oil Theft and Losses in Nigeria’, pointing out that oil theft has robbed the country a whopping $46.16 billion in revenue between 2009 and 2020.
In a statement on Friday, NEITI described the decision as courageous, bold and timely, considering the fact that oil theft has assumed a frightening dimension in recent times and has wreaked monumental havoc in oil production and the country’s revenue generation.
‘This information and data were provided by an average of eight companies audited over the years’, the statement noted.
NEITI added regretted that it was disappointing that certain Nigerians would decide to work with foreigners to steal and damage the primary sources of income for the federation at a time when Nigeria’s economy was heavily dependent on oil earnings.
The Agency specifically expressed satisfaction with the coordination of the investigations between the National Security Adviser’s and Secretary to the Government of the Federation’s offices, and it praised the appointment of NEITI to this Special Panel as being wise given the Agency’s strategic importance in providing the Panel with trustworthy information and data.
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NEITI in the statement also explained that as an agency with legitimate interests and mandates in enthroning transparency and accountability in the oil and gas sector, it will seek technical support where necessary from 57 member countries of the global Extractive Industries Transparency Initiative to address the international dimension of oil theft in the work of the investigative panel.
NEITI further disclosed that after a careful review of the Terms of Reference of the Panel on Oil Theft Investigation, it found the terms of reference of the Committee, comprehensive, incisive, and attainable.
The Panel is among other things required to establish the ramifications of crude oil theft/losses in Nigeria; ascertain the causative factors immediate and remote of crude oil theft/ losses in the country; with the widest possible amplitude, identify persons/entities whether public, private or foreign, involved in the criminal enterprise; Ascertain the illegal insertion into the Trans Escravos Pipelines (TEP) around Yokri area in Burutu Local Government Area of Delta State.
Other recommendations in the Terms of Reference are to establish the level of culpability of identified persons/entities in the enterprise; Examine the specific roles of Regulatory Agencies; Security Agencies Tiers/Arms of Government and International Oil Companies(IOCs) in aiding and abating the criminal enterprise; Assess the efficacy of the security architecture/arrangement in tackling crude oil theft/losses and associated petroleum products and recommend appropriate, commensurate and sufficiently, deterrent sanctions on all those culpable. The Panel is also expected to recommend steps, procedures, and processes to be taken by the government to eliminate the enterprise in the industry to prevent future occurrences.