Over $56bn lost to oil theft, subsidy – Presidency panel

Nigeria has lost $46.16bn to crude oil theft between 2009 and 2020, while it lost $10.7bn annually to subsidy on Premium Motor Spirit, popularly called petrol.

This was revealed by the Energy and Natural Resources subcommittees of the Advisory Council of President Bola Tinubu.

A summation of the amounts lost to oil theft and subsidy indicated that the country lost a total of $56.86bn, going by figures released in the Policy Advisory Council Report, dated May 2023.

Highlighting the economic and sector challenges in the report, the council also stated that $70bn worth of investments was lost in the petroleum industry since 2011 due to the absence of the Petroleum Industry Act.

The report further pointed out that at seven per cent, Nigeria’s revenue to Gross Domestic Product ratio was among the five lowest in the world.

It read in part, “Governance and regulatory concerns have eroded investor confidence, diverting private capital needed for the development of critical oil and gas infrastructure.

“Cumulatively, these have reduced the energy sector contribution to economic growth and deprived citizens of the necessary infrastructure and social amenities required for improving living standards”, the report added.

The council outlined some targets to be pursued by the President between 0 to 100 days, adding that there was a need to unify exchange rate window, reorganise the Nigeria Upstream Petroleum Regulatory Commission/Nigeria Midstream and Downstream Petroleum Regulatory Authority.

It said the reorganisation of the agencies would be to deliver set milestone goals, adding that there was a need to headhunt/place capable resources in critical positions.


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