Nigeria needs a robust maritime strategy to tackle the menace of crude oil theft, adversely affecting its revenue, foreign exchange inflows and economic stability.
Mr. Tosin Ige, a Senior Economist, Impact Research, Proshare, made this point while speaking on the latest report, "Anatomy of Crude Oil Theft in Nigeria: Understanding the Graft, Impact and Implications."
According to him, the "Maritime Strategy" should lead to the entire ecosystem from the Nigerian Navy, Security Agencies and Maritime authorities working together to secure the waterways, driving a viable blue economy.
He said, "Trade is a key component of the proposition on a maritime strategy, and Nigeria needs to develop a blue economy that unlocks investment opportunities."
He noted that the report highlighted the need for a fast-tracking of implementing the Petroleum Industry Act (PIA), which makes provisions for a strategic engagement with oil-producing communities. He decried contracting non-state actors to protect oil installations and facilities.
"The report stressed the need to review the contracts that deploy long stretched pipelines across the country, which is how crude oil theft occurs. The economist called for adopting technology from video sensors to other innovative solutions, like Saudi Arabia's model, to address the issue of crude oil theft.
He commended the Nigerian National Petroleum Company Limited (NNPC) for launching a mobile 'App' to detect and report crude oil theft activities in the industry and establishing the 'Command Assessment Centre' designed to improve signalling, surveillance and effective monitoring.
He acknowledged that data is an issue in ascertaining the figures related to the losses from crude oil theft. The analysis from Proshare states that Nigeria is losing 40% of its foreign exchange earnings to the menace. He added that the report provided a robust methodology on Nigeria's losses to crude oil theft.
The report, according to him, also provides quick and long-term fixes to the theft issue and is a must-read for policymakers, regulators, operators, stakeholders and the general public.
For further information on the report, send an email to [email protected] or call 0700PROSHARE