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Buhari urged to unveil policy on oil theft

By Editor
21 July 2015   |   12:52 am
PRESIDENT Muhammadu Buhari has been urged to urgently unveil a policy direction and action his government will take to eradicate oil theft. An anti-oil theft initiative, ‘Seal the Crude,’ which made the call in a statement by its Programme Officer, Stephen Hemba, said the problem was no longer ‎tolerable and since it is a recurring…
President Muhammadu Buhari

President Muhammadu Buhari

PRESIDENT Muhammadu Buhari has been urged to urgently unveil a policy direction and action his government will take to eradicate oil theft.

An anti-oil theft initiative, ‘Seal the Crude,’ which made the call in a statement by its Programme Officer, Stephen Hemba, said the problem was no longer ‎tolerable and since it is a recurring issue passed on to the Buhari administration, the President must waste no time in outlining a policy thrust to address it.

The statement said such has become necessary due to the economic downturn bedeviling the country with states not being able to pay workers’ wages let alone provide social and developmental services to Nigerians.

“The President Muhammadu Buhari administration must approach this menace with a policy direction and action to strategically address the local and international dimensions of this economic crime,” the organisation said adding that, “addressing this problem now puts more money on the table for the new government, increases its capacity to finance its programmes and improves its image in driving a change and badly needed reforms in the oil industry.

It continued:‎ “It is no longer doubtful that crude oil theft gravely threatens the economic survival of Nigeria. Oil thieves tap into crude oil pipelines and draw crude away. Sometimes crude oil is stolen at the export terminals, allegedly facilitated by officials and security personnel responsible for protecting the exploration infrastructures. Some of this crude is refined illegally through local processes across the Niger-Delta and the rest is sold illegally in the international market. Through this process, an estimated 400,000 barrels of crude oil is lost daily and this translates to Naira value in trillions yearly.

“The theft, transportation, sale and handling of proceeds from this illegal activity through formal, local and global financial institutions without challenge in spite of security apparati suggest it is a well-coordinated syndicate collaborated by state officials and international actors. This unwholesome practice poses a great threat because Nigeria’s economy largely depends on revenue from the sale of crude oil.”

The body added: “The activities of crude oil thieves deprive the Nigerian people of revenue to finance development. It is partly responsible for the reduction in the revenue available to the states according to official sources. Many states cannot pay salaries of their workforce and obviously cannot provide basic services like, healthcare, education etc. Also, proceeds from the sale of stolen crude are used to sponsor criminal gangs, including militant groups which increase insecurity and threatens investment opportunities. The activities of militants and other deviants may be diversionary and used as decoy to weaken government security apparatus set up to effectively tackle the crime. It also creates an insecure environment within which oil theft thrives.

“The breaking of oil pipelines to steal crude spills the oil and further damages the already degraded environment of the Niger Delta. This affects the health and the economic survival of the Niger Delta communities and significantly depreciates the nation’s biodiversity resources.

“Efforts by previous Nigerian governments to stop this assault on the economy and citizens apparently yielded no significant impact. Rather than the situation abating, it appears to have assumed very a disturbing dimension before the exit of the immediate past government. It has now been passed on and stares this government in the face.

“Something must be done urgently and differently. The President Muhammadu Buhari administration must approach this menace with a policy direction and action to strategically address the local and international dimensions of this economic crime.
Addressing this problem now puts more money on the table for the new government, increases its capacity to finance its programmes and improves its image in driving a change and badly needed reforms in the oil industry, “ Seal the Crude charged.

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