Nigeria loses over N1 trillion to oil theft annually – IEA

Published:14 Nov, 2012

The International Energy Agency has said that Nigeria is losing about $7bn annually to oil theft.

The agency, in its monthly report released on Tuesday, said “oil bunkering, or theft, costs the government an estimated $7bn in lost revenue per year.”

According to the report, theft and sabotage often lead to pipeline damage, causing oil firms to cut output.

The report also said flooding and large-scale theft of crude drove Nigerian oil output to the lowest level for more than two years in October.

The IEA said in its monthly report that oil production in the country fell to 1.95 million barrels per day in October, with production in recent months having ranged between two million and 2.5 million barrels per day.

The drop from September to October was around 110,000 bpd, it said, leaving Nigerian production at “the lowest level in around two and half years.”

“By early November, production levels were recovering, with export schedules showing increased volumes for December,” it said.

It was enough to keep the country as Africa’s top producer ahead of Angola at 1.79 million bpd, but the drop comes amid growing warnings that the country must take action to avoid stagnant output in the future.

Nigerian oil production sharply rebounded after a 2009 amnesty deal for militants in the Niger Delta region following years of unrest, which had cut output by around half for a period of time.

However, future output is in question over a number of factors, including a long-stalled overhaul of Nigeria’s oil industry that has created uncertainty among energy firms, freezing investment, as well as theft.

Beyond that, a boost in production in the United States — the IEA believes the US will become the world’s top oil producer by 2020 — is also expected to force Nigeria to hunt for new markets. The US has been a major buyer of Nigerian oil exports.

Related Posts

Recent Posts

Kourtney Kardashian & Kylie Jenner Hit New York

The Kardashian sisters take New York fiercely. Kourtney Kardashian and little sister, Kylie Jenner, storm New York wearing furry coats and killer boots. Now we have no idea what they are up to but bet we will find out soon. The sisters both shared these photos on their Instagram pages. See photos below:

Buhari Arrives Abuja From London (PHOTOS)

President Mohammadu Buhari has returned from his brief vacation. The President landed Abuja this night from London. His official photographer, Bayo Omoboriowo, shared these photos on his Instagram page. See photos below:

51 Feared Dead In Dikwa Suicide Attack

At least 51 people died in a suicide bomb attack in Dikwa, a local council in Borno State, villagers say. Seventy-eight injured persons have also been evacuated to Maiduguri, the capital city for treatment. A mass burial has already been conducted for the deceased victims, mostly women and children. Dikwa, 80 kilometres from Maiduguri, once occupied by the Boko Haram terrorists, was declared liberated by the Nigerian Army since July last year. Credit:...

Alleged Bribe: Otedola To Testify Against Farouk Lawan

Billionaire businessman, Mr. Femi Otedola, has been scheduled to appear as a prosecution witness before a Federal Capital Territory High Court in Lugbe, Abuja, in the ongoing trial of a former Chairman, House of Representatives Ad-hoc Committee on Fuel Subsidy, Mr. Farouk Lawan, for alleged bribery. The Independent Corrupt Practices and other related offences Commission is prosecuting Lawan for allegedly “corruptly” collecting $500,000 out of the $3m bribe he requested from Otedola in exchange for the...

Local Vehicle Manufacturer IVM Makes Parts For Nigerian Jet Fighters

Chief of the Air Staff, Air Vice Marshal Sadique Baba Abubakar has applauded the management of Innoson Vehicle Manufacturing Company for its support to the military by providing technical support that has enabled the Nigerian Air Force to sustain its operations against the Boko Haram insurgents. The Air Force revealed on Wednesday, that Innoson ‘helped to locally modify and overhaul the brake assembly of the MB-339 aircraft for adoption on the Alpha Jets’ and also ‘helped...

Nigerian Army Busts Boko Haram Fuel, Ammunition Supply Chain

The Nigerian Army said it ambushed Boko Haram insurgents and killed a number of them while transporting fuel and various calibre of ammunition to their hideout. A statement by the spokesman of the Nigerian Army, Sani Usman, said the troops, while on operation at a cattle market on Wednesday morning, intercepted the insurgents and seized the supplies. “In continuation of their clearance operations of remnants of Boko Haram terrorists in the North East, troops of...

CPC Orders MTN To Pay N1.85m To Subscriber Within 14 Days

The Consumer Protection Council on Wednesday directed MTN Communications Limited to pay within 14 days the sum of N1.85m to one of the winners of its Ultimate Wonder Promo for lack of due diligence. The council’s order came on the heels of a complaint brought by Mr. Omeje Fidelis against the telecommunications company alleging that he had been underpaid after he was declared winner of N2m in the said sales promotion, which was held in 2012.

FG Moves To Secure List Of Properties Owned By Nigerians In Dubai

Few weeks after President Muhammadu Buhari’s visit to the United Arab Emirates (UAE), the federal government has revealed that efforts were in top gear to secure a list of Nigerians who owned choice properties in the country from proceeds of fraud.  Minister of Foreign Affairs, Mr. Geoffrey Onyeama, while briefing the Senate Committee on Foreign Affairs during the budget defence of the ministry, said the Nigerian government was in talks with...

Troops Arrest Mastermind Of Agip Pipelines Bombing

Troops of the Joint Force in the Niger Delta, Operation Pulo Shield, say they have arrested the suspected mastermind of the bombing of pipelines belonging to Nigerian Agip Oil Company in Bayelsa State. Agip oil pipelines located in Orukari, Golubokiri and Kpongbokiri communities of Brass Local Government Area of the state had been bombed on January 28. The dynamite attacks on the pipelines had resulted in massive spillage of crude oil from the Agip pipelines...

Savings From Fuel Subsidy Removal Rises To N647m Daily

Nigeria, as at yesterday, is currently saving N647.2 million daily from the suspension of subsidy on Premium Motor Spirit, also known as petrol. Particularly, at the current price of N86.50 per litre in petrol stations across the country, the country is making an extra N16.18 per litre. The Federal Government had stated that this extra savings is kept in an escrow account to serve as a cushion in case of eventuality, such as if the price...

Nigeria To Reward Best Performing Civil Servants, Sanction Under Performers

The Head of Service of the Federation Winifred Oyo-Ita, on Wednesday said government had resolved to reward best performing civil servants and sanction under-performing ones, with a view to ensuring effective service delivery. Mrs. Oyo-Ita said in a statement that the service would be enhanced to improve personnel structure and Performance Management System (PMS), with the introduction of reward for hard work as well as sanctions for poor performance. The head of service said the...

Imo State Recalls Suspended Workers To End Protests

The Imo State government has recalled workers it suspended in 19 parastatals in the state, ending the disagreement between the government and labour unions on the issue. The decision was reached on Wednesday after a meeting between the State government officials and some leaders of the labour unions. In an agreement signed after talks by the ‘Committee on Joint Government-Labour Negotiation in Imo State’, an immediate recall of all suspended workers of Imo State was recommended,...

INEC To Prosecute Under-age Voters

The Independent National Electoral Commission (INEC) said on Wednesday that it would prosecute under-age voters in Plateau.   Dr Godwin Kwanga, the Resident Electoral Commissioner (REC) of INEC in the state made this known in a Stakeholders’ Forum in Jos ahead of re-run elections in the state fixed for Feb. 20.   Kwanga said that the state was replete with underage voters in possession of Permanent Voter Cards (PVCs).   The stakeholders at the forum included representatives of security agencies, politicians, media and election monitoring...

Tunisia Makes $500 Million From Ousted President’s Assets

Tunisia has made nearly half a billion dollars from the sale of assets confiscated from ousted president Zine El Abidine Ben Ali and his allies, a minister said Wednesday.   In the months following Ben Ali’s flight to Saudi Arabia after the January 2011 revolution that ended his rule, the cash-strapped country seized hundreds of businesses, properties, luxury cars and jewellery belonging to him, his family and his allies. “Since 2011, we made around 1.5 billion dinars (of which) around 1...

Abia Senatorial Rerun : APGA Candidate Writes Kalu On Peaceful Election

Chief David Onuoha-Bourdex, the APGA candidate in the Abia North Senatorial rerun has written to an opponent, Dr. Orji Kalu of Progressive People’s Alliance (PPA) on peaceful polls.   In the letter addressed to Kalu, a former governor of the state, Onuoha-Bourdex underscored the need for all parties to the rerun to play the game according to rules.   The letter dated Feb. 5 and copies made available to newsmen on Wednesday in Abuja, the APGA candidate said that the peace of the...

NUT Demands Immediate Payment Of Teachers

The Nigeria Union of Teachers (NUT) has urged state governments owing teachers’ salaries to pay immediately, to ensure industrial peace.   The union made the call in a statement signed by Mr Obong I.J. Obong, the NUT General Secretary, and made available to the News Agency of Nigeria (NAN) on Wednesday in Abuja.   It urged such state governments to be alive to their responsibilities and stop toying with the future of the Nigerian child.   "We call on these state governments to be alive...

Internet Users Reduced By 788,215 In December 2015 – NCC

The Nigerian Communications Commission (NCC) on Wednesday said that internet users on Nigeria's telecoms’ networks reduced by 788,215 in December 2015.   The telecoms’ regulatory body disclosed this in its Monthly Internet Subscriber Data obtained by the News Agency of Nigeria (NAN) in Lagos.   The data revealed that users on both Global System for Mobile communications (GSM) and Code Division Multiple Access (CDMA) networks stood at 97,182,014 as at December 2015.   According to NCC, this was in contrast to 97,970,229 internet subscribers recorded...

Forex Policy To Stabilise Capital Market – Financial Experts

Some financial experts on Wednesday in Lagos said that the Federal Government’s foreign exchange policy not to devalue the naira would stabilise the nation’s capital market at the long run.   They told the News Agency of Nigeria (NAN) that the decision had reduced activities of speculators and capital flight at the Nigerian Stock Exchange (NSE).   They maintained that the forex policy stance had reduced activities of speculators in the form of portfolio investors in the market.   Alhaji Rasheed Yusuuf, the Managing Director,...

FG To Save N4.14bn On Travels Yearly Through Efficiency Unit

Mrs Kemi Adeosun, the Minister of Finance, on Wednesday said that government would save N4.14 billion from the Efficiency Unit on travels yearly with appropriate streamlining of the procurement process.   Adeosun made the disclosure at the Efficiency Unit’s media round table held in Lagos.   The News Agency of Nigeria (NAN) reports that the minister was represented by Mrs Patience Oniha, Head of the Efficiency Unit.   She said that government would save N4.14 billion annually "if a price discount of five per cent...

Finland To Train Nigerian Teachers

The Visiting Finland’s Deputy Minister of External Economic Relations to Nigeria, Mr Matti Anttonen, on Wednesday expressed his government’s readiness to train Nigerian teachers.   Anttonen told the News Agency of Nigeria (NAN) in Lagos that the plan was part of his government’s effort at ensuring that Nigerian teachers were well-grounded in the teaching profession.   The deputy minister said that because it would not be possible to send all Nigerian teachers to Finland, a large number of them would be selected to...

Federal Retirees Decry Delay In Pension Payment By PFAs

Some Federal Civil Service retirees on Wednesday in Lagos, decried late payment of their monthly pensions more than six months after retirement.   The retirees, who spoke to the News Agency of Nigeria (NAN), were unhappy that they had not been paid the monthly stipend from their savings with the Pension Fund Administrators (PFAs).   NAN reports that the Pension Reform Act came into effect on July 1, 2014 to govern and regulate the administration of the contributory pension scheme for both public...