The Speaker of the House of Representatives, Abbas Tajudeen, yesterday said that oil theft and other related criminalities are the greatest economic sabotage that has left the country with dwindling revenue.
The Speaker said this while inaugurating a Special Ad-Hoc Committee on Oil Theft to investigate the growing spate of pipeline vandalisation, illegal petroleum bunkering, and theft.
Speaking during the inauguration ceremony, Abbas stated the resolve of the 10th House to “tackle one of the largest threats to Nigeria’s economy.
He expressed regret that Nigeria loses over 300,000 barrels of crude oil per day due to theft, vandalism, and other criminal activities.
In a statement signed by his Special Adviser on Media and Publicity, Musa Abdullahi Krishi, the Speaker said, “Some of the severe consequences of this include revenue loss, environmental disaster, threats to regional peace and security, proliferation of arms, and a poor investment climate.”
The Speaker also said the nation was reported to have incurred losses of oil revenues estimated at N1.29trn annually due to industrial-scale theft.
He noted that the Committee’s primary objective was to determine the proximate and remote causes of oil theft and recommend remedial measures to the House.
According to him, “Nigeria is facing significant financial challenges due to a combination of rising expenditures and falling revenues. You may recall that the proposed revenue and expenditure for 2023 stand at N9.73trn and N20.51trn, respectively. This means a fiscal deficit of N10.78trn, which is about 4.78 per cent of the Gross Domestic Product (GDP).
“This deficit is the largest in Nigeria’s history, and with a budget more than double the proposed revenue, we are faced with the challenge of borrowing to cover the gap.
“It is for this reason that the House will significantly raise the targets for all government revenue-generating agencies. I am convinced these agencies can generate much more than they currently do. In our recent engagement with MDAs on the 2024-2026 MTEF, we have made it clear that a lot more will be required of our key revenue-generating agencies in 2024. We expect them to double their total annual revenue profile. However, to achieve this, these agencies must reduce wastage and improve efficiency, especially in collection.”
The Speaker added that revenue-generating agencies must ensure transparency in the management of generated revenues.
He said the House would not tolerate low performance by agencies or failure to show evidence of required remittances to the Federation Account, stressing, “We shall also closely monitor and undertake strict oversight of the activities of all revenue-generating agencies to ensure compliance”.
He further explained that the House set up the Special Committee to underscore the chamber’s unwavering commitment to protecting the nation’s resources for the good of all citizens and to punish the perpetrators of these dreadful crimes.
Earlier in his remarks, the Chairman of the House Special Committee on Oil Theft, Alhassan Ado Doguwa, described oil theft as an issue of national importance, while the House had “taken an important and bold step” to check the crime.
“The issues of oil theft and pipeline vandalisation are not new to us, nor are they exclusive to Nigeria as a nation. However, they remain persistent threats to our economy, ecology, and national security,” Doguwa added.
