Nigeria Loses $3.3 Billion to Crude Oil Theft and Sabotage — NEITI
NEITI told PulseNets that Nigeria lost 13.5 million barrels of crude oil worth $3.3 billion to crude oil theft and pipeline sabotage between 2023 and 2024, calling for greater transparency in the energy sector.
The Federal Government has lost an estimated 13.5 million barrels of crude oil, valued at approximately $3.3 billion, to theft and pipeline vandalism between 2023 and 2024, according to new disclosures by the Nigeria Extractive Industries Transparency Initiative (NEITI).
The revelation was made by NEITI’s Executive Secretary, Dr. Ogbonnaya Orji, during his presentation at the 2025 Annual Conference of the Association of Energy Correspondents of Nigeria (NAEC) held in Lagos.
Speaking on the theme, “Nigeria’s Energy Future: Exploring Opportunities and Addressing Risks for Sustainable Growth,” Dr. Orji lamented the deep-rooted lack of transparency and accountability within the oil and gas industry—issues he described as “critical barriers to Nigeria’s sustainable economic growth.”
He told PulseNets that the scale of oil theft and sabotage was alarming, warning that the lost revenue could have funded the entire federal health budget for a year or provided energy access to millions of Nigerian households.
“Our verified data indicate that crude oil theft and sabotage cost Nigeria 13.5 million barrels—worth about $3.3 billion—in just one year,”
Dr. Orji stated.
“This magnitude of waste is totally unacceptable, particularly when the nation is grappling with revenue shortfalls and widespread energy poverty.”
Citing findings from NEITI’s 2021–2022 Oil and Gas Industry Reports, Orji disclosed that Nigeria earned $23.04 billion from the sector in 2021 and $23.05 billion in 2022. However, he added that about ₦1.5 trillion remains outstanding in debts owed to the Federation by some companies and government agencies.
“These unpaid funds could have financed key infrastructure, improved healthcare delivery, or expanded access to clean energy across rural communities,”
he told PulseNets.
“Transparency and accountability are not mere ideals—they are indispensable conditions for achieving a sustainable energy future.”
Dr. Orji further reported that NEITI’s ongoing reforms have repositioned the agency beyond audit functions to serve as a full-fledged governance reform institution.
“Over the past decade, NEITI has institutionalised systematic audits across Nigeria’s oil, gas, and solid minerals sectors.
We are now tracking production, payments, and remediation in real time,”
he explained.
He also highlighted key achievements, including the Beneficial Ownership Register, which has exposed the true owners of more than 4,800 extractive assets, and the NEITI Data Centre, designed to provide open, real-time access to industry data for the public and policymakers.
Dr. Orji told PulseNets that NEITI is collaborating closely with key regulatory bodies such as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigerian Content Development and Monitoring Board (NCDMB) to deepen transparency in licensing, metering, and host community trust fund management.
Also Read: Crude oil theft: FG discovers illegal pipeline connections in Abia
He also disclosed that NEITI’s newly introduced Just Energy Transition and Climate Accountability Framework will ensure Nigeria’s shift to cleaner, renewable energy is conducted in a transparent, inclusive, and equitable manner.
“Our goal is simple,” he said.
“Every barrel of crude oil produced in Nigeria must be accounted for—and every reform must move us closer to a transparent, fair, and sustainable energy future.”
