Elumelu challenges Federal Gov’t to expose crude oil thieves
The Chairman United Bank for Africa, Chief Tony Elumelu, has urged the Federal Government and security agencies to reveal the identities of those responsible for the massive theft of crude oil in Nigeria, particularly through vessels moving in and out of the country’s territorial waters.
Elumelu made the appeal in an interview published by the British daily newspaper, Financial Times (FT), on Friday, highlighting the grave impact of oil theft on Nigeria’s economy and the exodus of international oil companies from the country.
Expressing his deep concerns, Elumelu described oil theft as a significant factor behind the divestment of international oil companies (IOCs) from Nigeria’s onshore assets. He shared his personal experience with the menace, recounting how criminal gangs began siphoning crude oil from his company’s pipelines, leading to a drastic reduction in production.
In 2022, as the situation reached a critical point, Elumelu took to social media to voice his frustration. “How can we be losing over 95 per cent of oil production to thieves? Look at the Bonny Terminal which should be receiving over 200,000 barrels of crude oil daily; instead, it receives less than 3,000 barrels, leading the operator Shell to declare force majeure. The reason Nigeria is unable to meet its OPEC production quota is not because of low investment but because of theft, pure and simple!” he had tweeted.
Elumelu further expressed his dismay at the failure of Nigerian authorities to curb the oil theft, contrasting the situation with the efficiency of security agencies in other countries. “This is oil theft, we’re not talking about stealing a bottle of Coke you can put in your pocket. The government should know, they should tell us. Look at America — Donald Trump was shot at and quickly they knew the background of who shot him. Our security agencies should tell us who is stealing our oil. You bring vessels to our territorial waters and we don’t know?” he questioned.
Despite the ongoing theft, which still claims about 18 per cent of his company’s daily production of 42,000 barrels, Elumelu remains optimistic. However, he remains critical of the government’s handling of the situation, recalling a past incident where the administration of former President Muhammadu Buhari allegedly blocked his attempt to acquire an oilfield. According to Elumelu, Heirs Holdings had raised $2.5 billion to purchase an oilfield since 2017, but the deal was thwarted by Buhari and his late Chief of Staff, Abba Kyari, on the grounds that such a strategic asset could not be sold to a private operator. “This defied logic,” Elumelu said, pointing out that the oilfield was being sold by a foreign company.
Elumelu, who made his fortune outside the oil industry, explained that his decision to purchase a 45 per cent stake in an oilfield three years ago, at a time when international oil companies were divesting from Nigeria’s shallow water assets, was driven by a desire to ensure energy security for the country. “We wanted to become a Fortune 500 company and we estimated what we needed. It’s not naira, it’s huge dollars. Energy security is crucial for a country that doesn’t produce enough electricity for its roughly 200 million citizens,” he noted.
Speaking on the increasing trend of Nigerians emigrating for better opportunities, known as the “japa syndrome,” Elumelu expressed his support for those seeking greener pastures abroad. “I support it, totally. I don’t have a problem with people saying ‘I’m going to Canada, UK or US.’ Joblessness is the betrayal of a generation. You’ve gone to school and come back with your dreams and aspirations and you don’t have the opportunity. For people who decide to find solutions elsewhere, no one should stop them. But for those who decide to stay, they should try to create an impact and build a legacy,” he declared.
