In a recent interview with the Financial Times, Tony Elumelu, Chairperson of United Bank of Africa, addressed the ongoing issue of oil theft in Nigeria. Elumelu emphasized the need for increased vigilance and accountability from both the government and security agencies. He highlighted the critical importance of identifying those responsible for stealing the country’s crude oil, particularly those using vessels to conduct these illegal activities within Nigerian territorial waters.
Elumelu expressed concern over the impact of this persistent problem, noting that it has contributed to the withdrawal of international oil companies from Nigeria. He underscored that while some progress has been made, the situation remains severe and requires immediate action from both the government and security agencies to curb these illicit activities.
In 2022, Elumelu took to Twitter (now X) to voice his frustrations about the state of the oil sector, revealing that his company had to shut down production due to theft. He pointed out that over 95 percent of oil production was being lost to thieves, citing the Bonny Terminal as a prime example where daily crude oil receipts fell drastically from 200,000 barrels to less than 3,000 barrels, prompting Shell to declare force majeure.
Despite Nigeria’s oil wealth, the country struggles to meet its OPEC production quota, illustrating that the issues extend beyond resource availability to include factors like low investment and rampant theft. Elumelu’s remarks underscore the urgent need for a unified national effort to address these challenges and restore stability to the oil sector.
