Outrage As Senate Uncovers Unaccounted ₦300 Billion, $200bn Crude Oil Proceeds

New findings from the Senate ad hoc committee probing crude oil theft in the Niger Delta have triggered widespread outrage, as the panel disclosed that nearly ₦300 billion in domestic crude revenue and more than $200 billion from international crude oil sales remain unaccounted for.

In its interim report submitted to the Senate, the committee detailed massive discrepancies, weak oversight and systemic lapses that have allegedly enabled the large-scale diversion of Nigeria’s crude oil revenue over the years.

The report followed months of forensic document reviews, written submissions and public hearings involving key players in the oil and financial sectors.

According to the report, a forensic review of records on domestic crude proceeds and tax oil proceeds revealed sale differentials, mismatches and unaccounted funds amounting to about $22bn.

The committee further uncovered a shortfall of $81bn between crude receipts declared by the Nigerian National Petroleum Company Limited (NNPCL) and those recorded by the Central Bank of Nigeria (CBN) for 2016 and 2017.

It added that its review of crude oil sales from 2015 to date, supported by investigations from international consultants, projected that over $200bn proceeds from crude oil sales remained unaccounted for globally.

The ad hoc committee traced the problem to faulty measurement systems, weak regulatory oversight and poor coordination among government agencies in the oil value chain.

It identified the use of unverified measuring instruments, lack of metrological control, ineffective interagency collaboration and uncoordinated enforcement mechanisms as major enablers of crude oil theft and revenue leakages.

The panel specifically faulted the suspension of the Weights and Measures Department’s activities in the upstream sector under the Petroleum Industry Act (PIA) 2021, describing the decision as one that undermined accountability and accurate measurement in crude oil operations.

The committee noted that accurate measurement at production sites and export terminals is a critical first step in tracking crude volumes and ensuring that all proceeds are properly accounted for.