The House of Representatives has called for decisive action to end Nigeria’s staggering daily loss of $79.4 million to crude oil theft, describing it as a national economic sabotage that threatens revenue growth and investor confidence in the petroleum sector.
Speaking at the General Counsel and Legal Advisers’ Forum for Midstream and Downstream Petroleum Companies in Abuja, Deputy Speaker of the House, Benjamin Okezie Kalu, stressed that combating oil theft must remain a top priority for lawmakers. Represented by Hon. Ikenga Ugochinyere, Chairman, House Committee on Petroleum Resources (Downstream), Kalu said the persistent theft undermines the economic gains achieved under the Petroleum Industry Act (PIA).
“Continued legislative attention is absolutely required to address this crippling issue of oil theft, which costs Nigeria approximately $79.4 million daily. This is a battle we must win,” Kalu said.
Kalu highlighted the PIA’s remarkable achievements since its enactment, revealing that Nigeria has attracted $16 billion in new investment commitments, representing a 28,991% increase from the pre-PIA baseline of just $55 million in 2020.
He noted that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) generated ₦4.344 trillion in 2023, a 14.89% increase compared to 2022, attributing the growth to improved regulatory efficiency.
“These are not just numbers; they translate to jobs, infrastructure, and renewed confidence in Nigeria’s oil and gas sector,” he said, adding that the National Assembly will sustain its oversight role, strengthen security legislation, and ensure regulatory agencies receive the needed support.
Declaring the forum open, Engr. Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), emphasized the importance of regulatory compliance to safeguard investments. Represented by Ogbugo Ukuoha, Executive Director at NMDPRA, Ahmed described the midstream and downstream sector as a “key driver of revenue, energy access, and industrial growth.”
He explained that the sector, which spans hydrocarbon processing, wholesale marketing, storage, distribution, and retail, requires a “unified compliance culture rooted in transparency, accountability, and shared responsibility.”
Ahmed disclosed that NMDPRA is currently streamlining gazetted regulations to eliminate inconsistencies and encourage investments, adding that the Petroleum Industry Act (PIA) has significantly restructured the industry by creating clear regulatory mandates for upstream, midstream, and downstream operations.
The NMDPRA boss urged legal practitioners to play a critical role in ensuring full compliance with operational standards, warning that the market’s volatility and complexity demand strict adherence to regulatory guidelines.
He also assured stakeholders that the Authority is adopting an inclusive approach by consulting licensees to simplify regulations, improve ease of doing business, and attract long-term investments in the petroleum value chain.
The House of Representatives’ renewed push against oil theft comes as Nigeria battles to meet its OPEC quota, stabilize foreign exchange earnings, and attract foreign direct investment. Experts estimate that curbing oil theft could save Nigeria over $28 billion annually, strengthen the naira, and enhance infrastructure financing.
Industry watchers believe that with the ongoing security reforms, improved community relations, and stricter enforcement of PIA provisions, Nigeria could significantly reduce crude theft and reinforce its position as a leading oil producer in Africa.