Nigerian businessman and philanthropist, Tony Elumelu, has called on the Nigerian government and security agencies to reveal the identities of those responsible for stealing the country’s crude oil, particularly those using large vessels to smuggle the oil through Nigeria’s territorial waters.
Elumelu made this appeal during an interview with the Financial Times, published on Friday, where he expressed his deep concerns about the ongoing oil theft crisis in the country.
He emphasized that oil theft has been a significant factor contributing to the divestment of international oil companies from Nigeria, noting that criminal gangs have been stealing crude oil directly from his company’s pipelines.
In 2022, Elumelu had to shut down production at one of his facilities due to the severity of the theft. He took to social media to express his frustration, stating: “How can we be losing over 95 percent of oil production to thieves? Look at the Bonny Terminal which should be receiving over 200,000 barrels of crude oil daily, instead, it receives less than 3,000 barrels, leading the operator Shell to declare force majeure.”
Elumelu pointed out that Nigeria’s failure to meet its OPEC production quota is not due to a lack of investment but rather because of rampant theft.
He urged Nigerians to hold their leaders accountable, as other oil-producing countries are benefiting from rising foreign reserves while Nigeria continues to suffer losses.
Despite the ongoing challenges, Elumelu remains optimistic about the future, although he acknowledged that oil theft still affects about 18 percent of the crude produced in his fields.
He described the scale of the theft as staggering, highlighting that it is not a small-scale operation that can be easily hidden. “This is oil theft, we’re not talking about stealing a bottle of Coke you can put in your pocket,” he remarked.
When asked who he believes is behind the theft, Elumelu pointed out that the government should already have this information.
He cited the efficiency of security agencies in other countries and questioned why Nigerian authorities have not yet identified those involved in such large-scale theft. “Our security agencies should tell us who is stealing our oil,” he asserted.
Elumelu also recalled a past experience where the previous administration, under President Muhammadu Buhari, allegedly prevented him from acquiring an oilfield.
He explained that despite raising $2.5 billion to purchase the oilfield, the deal was blocked, with the administration citing the strategic importance of the asset.
Elumelu expressed his disbelief at the decision, arguing that he would have been buying the oilfield from a foreign company, which should have been less of a concern to the government.
Additionally, Elumelu spoke about his decision to invest in an oilfield three years ago when major international companies like Shell, Total, and Eni were selling off their shallow water assets in Nigeria.
He emphasized that his aim was to ensure energy security for Nigeria, especially given the country’s ongoing struggles with power supply.
