Nigeria is facing an ongoing struggle to curb billions of dollars of losses annually due to the persistent issue of crude oil theft, pipeline vandalism, and other economic sabotages. The House of Representatives Special Committee on Crude Oil Theft has proposed the establishment of a special court to accelerate the prosecution of perpetrators.
Speaking at a stakeholders’ meeting in Abuja, Hon. Alhassan Ado Doguwa, the chairman of the committee, highlighted the inadequacy of many of the existing laws used for prosecuting crude oil theft cases.
He noted that a significant number of these laws originate from the military era and have not kept pace with the evolving sophistication of criminal activities in Nigeria’s petroleum sector.
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Both lawmakers and industry stakeholders present at the meeting concurred that these archaic regulations need to be updated to remove legal loopholes that have hampered effective prosecution of crude oil thieves.
Doguwa emphasized that the proposed reforms would not involve amendments to the Petroleum Industry Act (PIA), which he stated, primarily governs business operations in the petroleum sector rather than criminal acts. The committee chairman also expressed disappointment over the absence of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and instructed the committee clerk to summon the regulator.
Hon. Cyril Hart (APC, Rivers), a member of the committee, asserted that the panel’s mandate extends beyond simply addressing illegal bunkering.
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He posited that individuals or companies that acquire oil blocks but fail to develop them within their stipulated timelines should also be considered economic saboteurs. According to Hart, such inaction deprives Nigerians of the benefits derived from the country’s substantial reserves of about 38 billion barrels of crude oil.
He also voiced concerns regarding the divestment activities of international oil companies, cautioning that some indigenous companies that acquire these assets might not have sufficient financial capacity to maintain production levels.
Goodluck Ilajufi, Director of Energy Security at the Office of the National Security Adviser (ONSA) and representative of National Security Adviser Nuhu Ribadu, acknowledged progress by security agencies in combating crude oil theft but stressed that weak legislation continues to impede their efforts.
He revealed that some convicted offenders have received prison sentences coupled with fines as low as 100,000 Naira, an amount he deemed utterly inadequate. Ilajufi urged lawmakers to amend relevant sections of the Miscellaneous Offences Act to institute more stringent penalties for pipeline vandalism, crude oil theft, and petroleum product adulteration.
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Security agencies also supported the proposed reforms. Assistant Commandant-General David Idowu of the Nigeria Security and Civil Defence Corps (NSCDC) stated that the lenient court judgments in numerous crude oil theft cases have repeatedly undermined the effectiveness of efforts to tackle the crime despite many arrests.
He advocated for the establishment of a specialised court that would ensure both perpetrators and their financial backers face adequate sanctions.
In a similar vein, CSP Idris Abdullahi Mohammed from the Nigeria Police Force Petroleum and Illegal Bunkering Prevention Unit reaffirmed the police’s commitment to collaborating with other security agencies in combating crude oil theft nationwide.
