The government must tell us who is stealing crude oil with ships – Elumelu

Nigerian businessman Tony Elumelu says government and security agencies in Nigeria must be able to track down Nigerians who 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.

Elumelu, who fears oil theft, said the threat was contributing to the divestment of international oil companies from 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 but instead receives less than 3,000 barrels, leading the operator Shell to declare force majeure. The reason Nigeria cannot meet its OPEC production quota is not because of low investment but because of 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.

“42,000 barrels of crude are pumped daily. 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 soon 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.

He said he was told that Nigeria could not allow something of such strategic importance to fall into the hands of a private operator.

“This defied all logic,” he added, as he allegedly bought it from a foreign company.

Elumelu is one of the few Nigerians who made their fortune outside the oil sector. He said he decided to take a 45 percent stake in an oil field three years ago, when international oil companies such as Shell, Total and Eni sold their shallow waters in Nigeria. He wanted to give the country energy security at a time when power supplies are low.

“We wanted to become 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 added.

Speaking about the japa syndrome, Elumelu stated: “I support it, completely. “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 come back with your dreams and aspirations and you don’t have the opportunity. For people who decide to seek solutions elsewhere, no one should stop them. But for those who decide to stay, they should try to make an impact and build a legacy.”