The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mr. Bashir Bayo Ojulari, has revealed that crude oil theft in Nigeria and across Africa is being orchestrated by highly organised international criminal syndicates, not just local actors.
Ojulari made this disclosure on Monday, August 25, during his keynote address at the Africa Chiefs of Defence Staff Conference in Abuja, where he emphasised the urgent need for stronger regional and international collaboration to curb the menace.
According to Ojulari, the scale and sophistication of crude oil theft operations prove that they are not merely the work of local vandals.
The Growing Crisis of Crude Oil Theft in Nigeria
Instead, they are well-funded and technologically advanced international cartels exploiting gaps in security systems across the continent.
“Crude oil theft and its attendant illegal activities are by no means a purely localised occurrence; rather, these operations involve specialised international syndicates that take advantage of lapses within state, national, and continental security frameworks,” Ojulari said.
He noted that while Nigeria has been the hardest hit—particularly in the Niger Delta region—the impact stretches beyond the country, threatening energy security, government revenue, and investor confidence across Africa.
Crude oil remains Nigeria’s top export and a major source of foreign exchange, contributing about 90% of the country’s total export revenue.
However, oil theft has slashed daily production figures, sometimes cutting Nigeria’s crude output by as much as 200,000 to 400,000 barrels per day, according to industry estimates.
At current international oil prices, this translates to a loss of over $3 billion annually—funds that could have been deployed to boost infrastructure, healthcare, education, and social welfare.
Ojulari stressed that crude oil theft not only robs the Nigerian government of vital resources but also undermines national energy security, discourages international oil companies from investing in the country, and affects the global energy market.
Ojulari acknowledged that the Nigerian military, security agencies, and community-based surveillance groups have made progress in clamping down on illegal oil bunkering and pipeline vandalism.
He commended their collaboration with the NNPCL, noting that the partnership has led to a more secure operational environment.
He added, “Security forms a key pillar of the energy business and therefore plays a very important and strategic role in achieving national, regional, and continental energy security goals.”
He urged African governments to integrate advanced technology such as drones, satellite surveillance, and data analytics into security operations to track oil theft networks and strengthen border monitoring.
Industry experts have long pointed out that stolen Nigerian crude oil often ends up in international black markets, smuggled by well-connected networks with access to ships, foreign buyers, and financial laundering systems.
By tying the oil theft to international syndicates, Ojulari reinforced calls for cross-border law enforcement partnerships with Interpol, maritime authorities, and international financial watchdogs to trace illicit trade routes and dismantle these cartels.
The NNPCL boss also highlighted the positive impact of recent reforms in Nigeria’s oil and gas sector, including the Petroleum Industry Act (PIA) and the company’s transition into a commercial entity.
“We have seen the benefit of collaboration within the energy space, with significant improvement in our operating environment,” he said, while assuring stakeholders that the company remains committed to transparency, accountability, and innovation.
Ojulari further called on African leaders to use forums such as the Defence Staff Conference to design unified continental strategies against crude theft, insisting that energy security must be prioritised alongside national defence.
Analysts note that oil theft is not unique to Nigeria, as countries like Angola, Libya, and Venezuela also battle similar challenges.
However, Nigeria’s strategic position as Africa’s largest oil producer makes its case particularly urgent.
Experts suggest that solving the problem requires a three-pronged approach:
Strengthening local security around pipelines and export terminals.
International cooperation to intercept stolen crude in global shipping lanes.
Community engagement to reduce local participation in illegal bunkering by providing alternative livelihoods.
With Nigeria seeking to boost crude production to meet OPEC quotas and attract foreign investment, tackling oil theft has become a national priority.
The revelations by the NNPCL boss underscore that crude theft is not just a Nigerian challenge but a continental and global security threat that requires urgent multilateral action.
As Ojulari affirmed, “Only through sustained collaboration, intelligence sharing, and enforcement can Africa secure its oil wealth for future generations.”