Senate Uncovers Unaccounted N300bn Crude Oil Proceeds, Sparks Nationwide Outrage
Fresh controversy has erupted across the country following the Senate ad-hoc committee’s revelation that about N300 billion in crude oil proceeds is unaccounted for, raising serious concerns about transparency and accountability in Nigeria’s oil sector.
The committee, which is probing crude oil theft in the Niger Delta, submitted an interim report detailing massive discrepancies, weak oversight, and systemic failures that have enabled large-scale diversion of national oil revenue.
According to the report, a forensic review of domestic crude and tax oil proceeds uncovered differentials and mismatches amounting to about $22 billion, alongside an $81 billion shortfall between figures declared by the Nigerian National Petroleum Company Limited (NNPCL) and those recorded by the Central Bank of Nigeria (CBN) between 2016 and 2017.
International consultants working with the committee further projected that over $200 billion in crude oil proceeds remained unaccounted for globally from 2015 to date.
Faulty Measurement Systems, Weak Regulation Blamed
The committee traced the discrepancies to faulty measurement systems, ineffective regulatory oversight, poor interagency coordination, and the use of unverified measuring instruments in oil operations.
It also faulted the suspension of the Weights and Measures Department’s activities in the upstream sector under the Petroleum Industry Act (PIA) 2021, saying the decision weakened accountability and precise measurement of crude production.
The report noted additional structural issues, including the absence of a special court for prosecuting oil thieves and the non-implementation of the Host Communities Development Trust Fund (HCDTF), both of which have fueled persistent sabotage in host communities.
Call for Urgent Recovery of Stolen Funds
Projecting that unaccounted domestic crude sales amount to about N300 billion, the committee urged the Federal Government to launch local and international recovery operations to trace and retrieve stolen crude oil funds.
It also recommended:
- Empowering the Nigerian Upstream Regulatory Commission (NUPRC) to enforce international measurement standards
- Restoring the Weights and Measures Department
- Equipping security agencies with modern surveillance tools, including drones
- Establishing a Maritime Trust Fund for infrastructure and safety
- Creating a special court to expedite prosecution of crude oil thieves
- Immediate implementation of the HCDTF to curb sabotage and improve community relations.
The lawmakers also expressed concern over abandoned and poorly decommissioned oil wells leaking into the environment. They proposed handing such wells to NUPRC for transfer to modular refineries to boost domestic crude supply and help reduce vandalism.
Despite the alarming findings, the report acknowledged a 9.5% rise in crude oil production in 2023, an indication of gradual improvement in output and security.
Senate Responds, Nigerians React
While commending the committee, the Senate clarified that recovering stolen funds is not its mandate, directing the committee instead to name individuals involved in crude theft and finalize its findings for executive action.
Public reactions have been mixed, ranging from anger to resignation.
Oil industry analyst Idowu Christopher said the revelations merely confirm long-known corruption in the sector.
“Is anyone surprised? The government knows those involved but refuses to act. How can individuals own oil wells in a supposed commonwealth? Only in Nigeria,” he said.
He backed the recommendation for reclaiming such wells and transferring them to modular refineries, and faulted the government for failing to implement the HCDTF.
Another analyst, Chikia Umeayo, expressed deep resignation.
“This is no longer shocking. It has become a way of life. Some of us have spoken for years with no action. At this point, silence is easier because nothing ever comes out of these reports,” he stated.
Committee Seeks Mandate to Track Stolen Funds Worldwide
Reconstituted on February 11, 2025, after the death of its former chairman, Senator Ifeanyi Ubah, the committee appealed to the Senate for authority to track, trace, and recover stolen crude oil proceeds globally, arguing that such recovery is vital for restoring accountability and stabilizing the nation’s fiscal position.