Emmanuel Addeh in Abuja
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) yesterday reiterated its commitment to ending the decades-long crude oil losses in Nigeria, explaining that between 2021 and 2025 crude losses fell from $7 million per day to an average of $700,000 daily.
Speaking on ARISE NEWS Channel, the NUPRC’s Chief Executive Officer, Gbenga Komolafe, recalled the several initiatives taken by the current administration to reduce oil theft, vandalism as well as metering losses.
According to him, these initiatives have proved to be game-changers.
Komolafe disputed the methodology used in a recent report, claiming that crude oil amounting to over N8.4 trillion was lost in the last four years.
Komolafe disputed the methodology used in the report, emphasising that crude oil losses shrank by 90 per cent during the period.
“As of 2021, we got a situation that we were recording about 100,000 barrels a day loss. Looking at that, if you fiscalise that against the prevailing Central Bank of Nigeria (CBN) exchange rate as of then, that translates to roughly about $7 million.
“So, progressively, from 2021 coming down to 2025, we have now moved from a situation of a loss of $7 million a day to a situation where we are now witnessing roughly $700,000 a day,” the NUPRC chief stated.
Komolafe insisted that the NUPRC remains the statutory organisation in Nigeria that releases such data, explaining that even the Organisation of Petroleum Exporting Countries (OPEC) relies on figures from the commission.
“So, any other authority quoting figures of production will be doing that from a point of either referencing the commission or hearsay,” Komolafe added.
He pointed to how President Bola Tinubu gave the commission marching orders to tackle crude theft.
“On assumption of duty, President Tinubu gave that marching order that the situation was clearly unacceptable, and that he wanted to see a drastic reduction. That meant that the huge leakage in federal revenue arising from the administration of crude oil needed to be addressed.
“So, if you look at $7 million to about $700,000 a day, you’re talking of a drastic reduction of 90 per cent. With the directive of Mr. President, the general security forces have been making every effort to try to curb the menace,” he added.
On other measures adopted to curb crude oil losses, Komolafe listed two regulations, which he said were intentionally designed to complement the efforts of the security forces, including the Upstream Measurement Regulation and the Advanced Cargo Declaration Regulation.
Describing them as novel, Komolafe stated that these non-kinetic measures have helped to reduce losses by tracking every molecule of crude loaded from Nigeria’s terminals to the ports of discharge.
“It is instructive to say that within this period, we’ve never had what you call measuring regulation in the effort to try to track every molecule of crude loaded from our terminals to the discharge port. So, the commission has intuitively put these two regulations in place, and the regulations are designed in a way to be implemented in two phases. We have implemented the first phase,” he explained.
He stated that in the first phase, the NUPRC carried out integrity tests on the metering devices, across all the flow lines in almost 700 points, describing the exercise as comprehensive.
“So, our objective is to ensure, and that is very critical, that every molecule of crude that is loaded from our crude terminal – we can track it on a real-time basis digitally to the discharge point,” Komolafe said.
On the current face-off between the Dangote Refinery and oil workers, Komolafe stated that although the issues involved are purely mid and downstream affairs, the parties should refrain from what could cause supply disruption in the country.
“So, we believe that parties can actually sit down and discuss and reach an amicable solution…” he advised
For years, Nigeria’s crude oil has bled through theft, pipeline vandalism, metering lapses, and weak oversight, with the loss of millions of barrels that should have powered the economy.
The impact has been severe, including dwindling export earnings, missed production targets, and mounting repair costs on the system already weighed down by inefficiencies.