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Oil Theft Cost Nigeria Billions, Says Experts

Nigeria loses billions daily to crude oil theft, vandalism, and waste. Industry experts warned on September 29, 2025, demanding urgent digital upgrades to protect the economy.

At a leadership forum in Houston, U.S., Charles Deigh, a petroleum engineer with Nigerian Agip Oil Company, and Dr. Oluwatoyin Gbadeyan, a mechanical engineering researcher specializing in composites and waste valorization, presented a joint paper. They criticized Nigeria’s oil validation systems as “outdated and unclear,” enabling theft and inefficiency.

“Each barrel should fuel national growth, but sabotage and weak oversight drain our wealth,” they said. “This isn’t just unfortunate—it’s intolerable. Nigeria must act decisively to stop these losses.”

The experts noted that oil theft and spills, particularly in the Niger Delta, devastate both finances and health. Over 13 million barrels have spilled since 1958 across 7,000 incidents, per United Nations data, harming ecosystems and communities.

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They praised the Nigerian Upstream Petroleum Regulatory Commission’s efforts, such as the Nigeria Upstream Measurement System, the Automated Hydrocarbon Accounting System, and the 2021 Petroleum Industry Act’s metering rules. However, they warned that without robust enforcement, these measures might remain “hollow promises.”

Deigh and Gbadeyan urged adopting IoT sensors, drones, satellites, blockchain, and AI for real-time monitoring. They also called for oil companies to invest in resilient systems and for communities to promote transparency.

Bashir Ojulari, CEO of Nigerian National Petroleum Company Limited, speaking at the August 2025 Africa Chief of Defence Staff Conference in Abuja, emphasized that global criminal networks exploit porous borders, necessitating international cooperation.

It bears mentioning that persistent theft and spills threaten deeper poverty and unrest. Swift, tech-driven reforms could secure Nigeria’s economic future.

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