Nigerian businessman Tony Elumelu believes the government and security authorities in Nigeria should be able to identify Nigerians who steal the country’s crude oil, particularly those who use vessels that travel through territorial seas.
Elumelu mentioned this in an interview with the Financial Times on Friday. Elumelu, who fears oil theft, stated that the threat contributed to the departure of multinational oil firms from Nigeria.
He claimed he discovered firsthand why foreign oil firms were partially divesting from onshore assets when criminal gangs began stealing crude from his pipelines.
In 2022, when his company was forced to halt production, Elumelu went to social media, saying, “How can we be losing over 95% of oil production to thieves?Consider the Bonny Terminal, which should receive over 200,000 barrels of crude oil per day but receives fewer than 3,000 barrels, prompting the operator, Shell, to declare force majeure.
Nigeria’s failure to reach its OPEC production limit is due to theft, not a lack of investment. “Meanwhile, oil-producing countries are happy because their foreign reserves are increasing. What is Nigeria’s problem?”We need to hold our leaders accountable!”
Elumelu expressed confidence in an interview with the Financial Times, but added that oil thieves continue to steal 18% of his field’s crude.
“42,000 barrels of crude are pumped out daily. He indicated that theft continues to account for approximately 18% of total production. When asked who was behind the crime, he responded, “This is oil theft; we’re not talking about stealing a bottle of Coke to put in your pocket. The government should know, and they should inform us. Look at America – Donald Trump was shot, and they swiftly discovered who shot him. Our security authorities should inform us who is stealing our oil. You bring vessels into our territorial waters and we don’t know?”
The 61-year-old founder of Heirs Holdings described how the former administration of President Muhammadu Buhari reportedly prevented him from acquiring an oilfield. He revealed that Heirs Holdings has been searching to buy the oilfield since 2017, after raising $2.5 billion to buy another one. In a twist, he claimed that former President Buhari and his late Chief of Staff, Abba Kyari, had vetoed the agreement. He claimed he was warned that Nigeria could not allow something of such strategic importance to slip into the hands of a private company. “This defied logic,” he said, since he would have bought it from a foreign corporation.
As one of the few Nigerians who made their fortunes outside of oil, Elumelu revealed that his decision to purchase a 45 percent stake in an oilfield three years ago, when international oil companies such as Shell, Total, and Eni were selling off their shallow water assets in Nigeria, was to provide the country with energy security in the face of low power supply
.”We intended to become a Fortune 500 firm, so we calculated what we required.It’s not naira; it’s a lot of dollars. “Energy security is critical for a country that does not produce enough electricity for its approximately 200 million citizens,” he said.
As one of the few Nigerians who made their fortunes outside of oil, Elumelu revealed that his decision to purchase a 45 percent stake in an oilfield three years ago, when international oil companies such as Shell, Total, and Eni were selling off their shallow water assets in Nigeria, was to provide the country with energy security in the face of low power supply.”We intended to become a Fortune 500 firm, so we calculated what we required.It’s not naira; it’s a lot of dollars.
“Energy security is critical for a country that does not produce enough electricity for its approximately 200 million citizens,” he said.
Speaking about the japa syndrome, Elumelu stated, “I completely support it.”I have no problem with somebody stating, ‘I’m going to Canada, the United Kingdom, or the United States.
‘’Unemployment is the betrayal of a generation. You have dreams and aspirations, but lack the opportunity to pursue them after attending school.
Nobody should prevent people from looking for solutions elsewhere.However, those that opt to stay should strive to make an effect and leave a legacy.
In Essence
Elumelu is calling for greater transparency and accountability from the government regarding crude oil theft. His assertion that the authorities should know and disclose who is behind these thefts points to a broader issue of governance and security. The fact that such large-scale thefts can occur without apparent repercussions suggests either complicity or a serious failure in the enforcement of laws.
The oil theft crisis has significant economic implications. Nigeria’s inability to meet its OPEC production quota due to theft is particularly troubling, as it directly affects national revenue. Elumelu’s comparison to other oil-producing nations, whose reserves are growing, shows the lost opportunities for Nigeria’s economic growth.
