Juliana Taiwo-Obalonye, Abuja

Nigeria lost $1.3 billion worth of crude oil to theft and pipeline vandalism in the First Quarter of the year.

This part of the report presented to NEC by the Governor of Edo State, Mr Godwin Obaseki, who chaired the 13-man NEC sub-committee mandated to investigate the impact of the attacks on oil installations in the creeks of the Niger Delta.

The committee warned that if the situation was not arrested immediately, losses could be as much as $2.7 billion by the end of the year.

Obaseki said: “The ad hoc committee discovered that there were huge losses. In fact the NNPC reported to the committee that the 22.6 million barrels of crude oil valued at approximately $1.35 billion was lost during the first half of this year. And if this situation is not contained in two years we would have lost in excess of $2.7 billion.

“The losses that were recorded in the first half of the year were broken down as follows: The Nembe creek trunk-line lost 9.2 million barrel, the Trans-Niger pipeline lost 8.6 million barrel, the Trans-Focadoes Pipeline lost 3.9 million barrel, Trans-Escravos pipe lost 877,000 barrel.

“The ad hoc-committee reported that the governance structure of the pipeline is such today that no one is held accountable whenever there are bridges and when these losses occur.

“That the slow and inadequate prosecution of thieves despite numerous arrests and seizures have continued to encourage this menace.

“That the absence of petroleum products filling stations in most of the oil-producing communities around the Niger Delta make them resort to illegal bunkering and illegal refineries.

“That huge internal and external market of stolen products exists across the west coast of Africa and also the sub-region.”

Obaseki recommended, “that there is a need to restructure the maintenance and ownership of oil pipelines as a way of tackling the perpetrators of crude and other products.

“That we should have a legal framework that will ensure that criminals are duly prosecuted, imprisoned and their assets confiscated.

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“That there should be special courts to trial offenders and also have a special legal task force to coordinate the prosecution of arrested offenders as well as trained special judges to handle cases of oil theft.

“That NNPC should be encouraged to engage with the National Intelligence Agency (NIA) to identify the markets for stolen petroleum products across the continent.

“That the governors of the oil-producing states should set up actions to develop the communities that are most prone and through which these pipelines run with their 13 percent derivation allocation as well as implement programmes that will be impactful and make life easy for people.

“It noted that the NDDC in the Niger Delta Development Corporation which has the mandate to undertake development in this region should be restructured to perform its role better.

“That they should emphasis creating employment opportunities for young people and youths in the region.

“That the proposed funding arrangement to be jointly funded by the federal, states and the oil companies to ensure the communities through which this pipeline traverse get some benefits to encourage them to protect these lines.”

He said council resolved that recommendations should be presented to the president who is also the minister of petroleum for the final decision for implementation.

Obaseki added: “The chairman of the council also asked the NNPC to make a presentation to council on the state of PMS and other products which are smuggled across the borders.”

Gombe State Governor, Inuwa Yahaya, said Secretary to the Presidential Enabling Business Environment Council (PEBEC), Dr Jumoke Oduwole, gave an update on the enabling business to environment in the country.

The committee was mandated to take Nigeria to top 100 in the 2020 World Bank Ease of doing business index. It is also mandated it to achieve the required political buy-ins across all arms and levels of government.

He said the governors requested for clarification from the council chairman (the Vice President), on the relationship between NEC and the newly informed Economic Advisory Council. And the Vice President explained that those councils are advisory for the benefit of Mr. President while NEC is established by the constitution, there are to complement one another. He added that NEC could be briefed regularly on the activities of the Economic Advisory Council with the permission of Mr. President.”