Oil theft hampers Nigeria from meeting OPEC quota – Elumelu

Nigerian According to businessman Tony Elumelu, the government and security agencies in Nigeria should be able to warn Nigerians if they steal crude oil from the country, especially if they use ships that pass through territorial waters.

Elumelu stated this in an interview published by the Financial Times on Friday.

The businessman, who said he feared oil theft, said the threat was contributing to the divestment of international oil companies in Nigeria.

He said he had discovered first-hand why international oil companies partially pulled out of onshore assets after criminal gangs began stealing crude oil from its pipelines.

In 2022, when it came to the point where his company had to shut down production, Elumelu tweeted 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, leading the operator Shell to declare force majeure.

“It is clear that the reason Nigeria cannot meet its OPEC production quota is not due to lack of investment, but theft, pure and simple!

“Meanwhile, oil producing countries laugh as their foreign reserves grow. What is Nigeria’s problem? We need to hold our leaders more accountable!”

Speaking to the Financial Times, Elumelu sounded optimistic but also said oil thieves were still stealing 18 percent of the crude from his field.

“We pump 42,000 barrels of crude oil every day. Theft still costs about 18 percent of production,” he said.

Asked who was behind the theft, he replied: “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 quickly they knew the background of who shot him. Our security services should tell us who is stealing our oil. You bring ships into our territorial waters and we don’t know?”

The 61-year-old founder of Heirs Holdings recalls how the previous government of President Muhammadu Buhari allegedly stopped him from acquiring an oil field.

He revealed that Heirs Holdings had wanted to buy the oil field since 2017 and had raised $2.5 billion to buy another field.

But he alleged that former President Buhari and his late Chief of Staff, Abba Kyari, blocked the deal.

Speaking about the mass relocation of Nigerians abroad, Elumelu stated: “I fully support it. I have no problem with people saying ‘I’m going to Canada, the UK or the US.’

“Unemployment is the betrayal of a generation. You go to school and you come back with your dreams and aspirations and you don’t have the chance.

“No one should stop people who decide to seek solutions elsewhere. But those who decide to stay should try to create an impact and build a legacy.”