- According to latest investigations, Nigeria will be unable to reap any benefit from the surging oil prices in the international market, due to the continued theft and pipeline vandalism.
According to latest investigations, Nigeria will be unable to reap any benefit from the surging oil prices in the international market, due to the continued theft and pipeline vandalism. The estimated leakage in revenue is to the tune of US $7.3 billion a year. The country loses about 73 million barrels of oil a year due to thefts. A recent report released revealed that between January 2021 and February 2022, alone Nigeria lost $3.2bn to crude oil theft.
As a result, Nigeria is unable to meet the Organisation of Petroleum Exporting Countries, OPEC’s production quota of 1.8 million barrels per day. The Federal Government recently cut down export target to 1.6 million barrels per day.
There has been several efforts to address the issue of crude oil theft and sabotage through several initiatives and recommendations. Apart from losses to government revenue, it contributes to multiple damages including environmental degradation, health challenge and deaths due to fire disasters and proliferation of arms. Divestment of many multinational oil companies operating in Nigeria was attributed to the continued oil theft in the country.
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https://trendsnafrica.com/despite-oil-price-spiralling-nigerias-common-man-at-receiving-end/
