The Nigerian Senate on Wednesday, November 5, 2025, received an interim report from its Ad Hoc Committee investigating crude oil theft in the Niger Delta, raising concerns that the country may have lost more than $300 billion over the years through unrecorded oil proceeds.
The losses are suspected to be linked to poor supervision, collaboration among certain officials, and long-running illegal activities within the oil sector.
The committee, headed by Senator Ned Nwoko of Delta North, was established earlier in the year to examine the persistent theft of crude oil, illegal bunkering, and export rackets that have contributed to a steady fall in Nigeria’s oil production.
The group was also tasked with assessing possible internal compromises within regulatory and security agencies.
In its findings, the committee reported widespread irregularities in how crude oil is measured and monitored at production and export points.
It explained that weak enforcement and the absence of accurate measurement standards have created loopholes that enable massive revenue losses.
The interim document, running over 40 pages, also outlined suggested reforms to improve accountability in the petroleum sector.
Among its proposals, the committee advised that the Nigerian Upstream Petroleum Regulatory Commission should enforce globally recognized oil measurement systems across all production fields and export terminals.
It further recommended the use of modern surveillance tools, such as drones, by security agencies to track pipelines and export routes.
The committee also urged the government to set up a Maritime Trust Fund to strengthen coastal security, intelligence gathering, and inter-agency coordination.
Additional suggestions included establishing special courts to handle oil theft cases and implementing provisions of the Host Communities Development Trust Fund under the Petroleum Industry Act.
It also called for the handover of neglected oil wells to the regulatory commission for proper management.
However, the proposal to recover stolen crude and lost funds sparked arguments during plenary.
Some lawmakers noted that while the Senate can trace and identify missing resources, only relevant government agencies have the authority to recover stolen assets.
They requested that the committee include more precise figures, names of companies, and exact locations linked to the losses in its final report.
Senators pointed out that data gathered by consultants showed shortfalls amounting to $81 billion between 2016 and 2017, with another $200 billion unaccounted for from 2015 to date.
They called for full disclosure of all individuals, firms, and networks involved in the illegal operations.
Senate President Godswill Akpabio praised the committee for its detailed work but maintained that the task of retrieving stolen resources belongs to the executive arm of government.
He instructed the committee to continue its investigation and provide a comprehensive final report with more data and identified culprits.
Crude oil theft has remained a deep-rooted challenge in the Niger Delta for over two decades, driven by illegal refineries, militant groups, and corrupt practices within the oil trade.
Nigeria, which depends on crude exports for more than 80 percent of its foreign earnings, continues to lose between 200,000 and 400,000 barrels of oil daily to theft and vandalism.
This long-standing problem has forced some international oil companies to leave onshore fields, reduced production levels, and weakened national revenue.
Despite numerous government efforts — including military patrols and private security contracts — oil theft remains a serious threat to the country’s economy.
The Senate is expected to receive the final detailed report from the committee in the coming weeks.
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