Elumelu challenges federal government to expose crude oil thieves

Nigerian businessman and philanthropist Tony Elumelu has called on the federal government and security agencies to reveal the identities of those responsible for the large-scale theft of crude oil in Nigeria, particularly through vessels sailing in and out of the country’s territorial waters.

Elumelu made the appeal in an interview published Friday in the British daily Financial Times (FT), highlighting the serious consequences of the oil theft for the Nigerian economy and the exodus of international oil companies from the country.

Elumelu expressed deep concern and described oil theft as a major factor behind the divestment of International Oil Companies (IOCs) from Nigeria’s onshore assets. He shared his personal experience of the menace and recounted how criminal gangs started seeping crude oil from his company’s pipelines, leading to drastic reduction in production.

In 2022, when the situation reached a critical point, Elumelu vented his frustration on social media. “How can we lose over 95 percent of oil production to thieves? Look at the Bonny Terminal which should receive over 200,000 barrels of crude oil daily; instead it receives less than 3,000 barrels, which led to the operator Shell declaring force majeure. The reason Nigeria cannot meet its OPEC production quota is not because of low investment, it is because of theft, pure and simple!” he tweeted.

Elumelu further expressed dismay over the failure of Nigerian authorities to curb oil theft, contrasting the situation with the efficiency of security agencies in other countries. “This is oil theft, we are not talking about stealing a bottle of coke that you can put in your pocket. The government should know, they should tell us. Look at America – Donald Trump was shot and very soon they knew the background of who shot him. Our security agencies should tell us who is stealing our oil. You bring ships into our territorial waters and we don’t know?” he asked.

Despite the ongoing theft, which still claims about 18 percent of his company’s daily production of 42,000 barrels, Elumelu remains optimistic. However, he remains critical of the government’s handling of the situation, recalling a past incident in which the government of former President Muhammadu Buhari reportedly blocked his attempt to acquire an oil field. According to Elumelu, Heirs Holdings had raised $2.5 billion since 2017 to buy an oil field, but the deal was thwarted by Buhari and his late chief of staff, Abba Kyari, on the grounds that such a strategic asset could not be sold to a private operator. “This defied logic,” Elumelu said, noting that the oil field was sold by a foreign company.

Elumelu, who made his fortune outside the oil industry, explained that his decision to buy a 45 percent stake in an oil field three years ago, at a time when international oil companies were pulling out of Nigeria’s shallow water assets, was motivated by a desire to ensure energy security for the country. “We wanted to be a Fortune 500 company and we estimated what we needed. It’s not naira, it’s huge dollars. Energy security is critical for a country that doesn’t produce enough electricity for its 200 million or so citizens,” he noted.

Speaking on the growing trend of Nigerians migrating for better opportunities, known as the “japa syndrome”, Elumelu expressed support for those seeking greener pastures abroad. “I support it, totally. I have no problem with people who say ‘I’m going to Canada, the UK or the US.’ Unemployment is a generational betrayal. You go to school and come back with your dreams and aspirations and you have no chance. For people who decide to seek solutions elsewhere, nobody should stop them. But for those who decide to stay, they should try to make an impact and build a legacy,” he stated.