The Energy and Natural Resources subcommittees of President Bola Tinubu’s Advisory Council revealed that Nigeria lost Ksh6.4 trillion to crude oil theft between the years of 2009 and 2020. It also lost Ksh1.49 trillion in yearly subsidies on petrol.
The Policy Advisory Council Report that was compiled while Bola Tinubu was still President-elect states that the government has lost Ksh7.9 trillion due to oil theft and subsidies.
A total of Ksh 9.7 trillion in investments were wasted in the petroleum industry since 2011 due to the absence of the Petroleum Industry Act (PIA) as per the report.
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The PIA was signed into law by former President Muhammadu Buhari after a struggle in the National Assembly for decades. The report also noted the country’s income to Gross Domestic Product ratio was among the five lowest in the world at seven per cent.
“Insecurity is a major sector challenge, Ksh 6.49 trillion was lost to crude oil theft between 2009 and 2020. Ksh 1.49 trillion is lost annually to PMS subsidies and inefficiencies associated with the purchase, distribution and sale of PMS. Governance and regulatory concerns have eroded investor confidence, diverting private capital needed for the development of critical oil and gas infrastructure,” the report stated.
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The need to unify the exchange rate window and reorganize the Nigeria upstream Petroleum Regulatory Commission has been identified as a specific priority for the president to pursue between his first 100 days.
