Tony Elumelu, a prominent Nigerian entrepreneur and Chairman of Heirs Holdings and the United Bank for Africa (UBA), has voiced his concerns about the ongoing issue of crude oil theft in Nigeria. In a recent interview with the Financial Times, Elumelu highlighted how criminal gangs stealing oil from pipelines have significantly impacted the country’s oil production and led to the divestment of international oil companies from onshore assets.
Elumelu recounted his personal experience with the issue, explaining that the theft was so severe that it forced his company to shut down production in 2022. At the height of the crisis, Elumelu expressed his frustration on social media, pointing out that the Bonny Terminal, which should receive over 200,000 barrels of crude oil daily, was receiving less than 3,000 barrels due to theft. He stressed that this issue, rather than low investment, is the primary reason Nigeria struggles to meet its OPEC production quotas.
Despite these challenges, Elumelu remains optimistic about the sector’s future. However, he noted that oil theft still results in the loss of about 18% of production from his fields, with 42,000 barrels of crude pumped out daily. He called on the Nigerian government and security agencies to take more accountability and disclose the identities of those responsible for the theft, emphasizing the scale of the problem by comparing it to a hypothetical situation in the United States.
Elumelu’s remarks highlight the broader impact of oil theft on Nigeria’s economy and the urgent need for government action to address the issue.