Nigerian businessman and philanthropist, Tony Elumelu, has urged the government and security agencies in Nigeria to reveal those responsible for the theft of the nation’s crude oil, particularly through vessels that pass through the country’s territorial waters. Speaking in an interview with the Financial Times on Friday, Elumelu expressed deep concerns over the scale of oil theft, which he believes has significantly contributed to the divestment of international oil companies (IOCs) from Nigeria.
Elumelu, who heads Heirs Holdings, highlighted the dire situation he faced due to oil theft. “How can we be losing over 95 per cent of oil production to thieves?” he asked, reflecting on a 2022 tweet that brought attention to the severity of the issue. He further explained that the Bonny Terminal, which should be receiving over 200,000 barrels of crude oil daily, was receiving less than 3,000 barrels, forcing Shell, the operator, to declare force majeure.
He attributed Nigeria’s inability to meet its OPEC production quota to rampant oil theft, stating, “The reason Nigeria is unable to meet its OPEC production quota is not because of low investment but because of theft, pure and simple!”
Despite the ongoing theft, Elumelu remains optimistic, though he noted that about 18 percent of the crude oil pumped from his field, which produces 42,000 barrels daily, is still stolen. “This is oil theft, we’re not talking about stealing a bottle of Coke you can put in your pocket. The government should know, they should tell us,” he urged.
Drawing a comparison to the efficiency of law enforcement in other countries, Elumelu questioned the capabilities of Nigeria’s security agencies. “Look at America — Donald Trump was shot at and quickly they knew the background of who shot him. Our security agencies should tell us who is stealing our oil. You bring vessels to our territorial waters and we don’t know?” he queried.
The 61-year-old businessman also recounted a missed opportunity to acquire an oilfield during the administration of former President Muhammadu Buhari. Elumelu revealed that despite raising $2.5 billion to purchase the oilfield, the deal was blocked by the former president and his late Chief of Staff, Abba Kyari, who argued that Nigeria could not allow something of such strategic importance to fall into the hands of a private operator. “This defied logic,” Elumelu remarked, noting that he would have been purchasing it from a foreign company.
Elumelu’s venture into the oil sector, including his acquisition of a 45 percent stake in an oilfield three years ago, was driven by a desire to enhance Nigeria’s energy security. He emphasized the importance of this move for a country that struggles to produce enough electricity for its 200 million citizens. “Energy security is crucial for a country that doesn’t produce enough electricity for its roughly 200 million citizens,” he stated.
On a different note, Elumelu shared his views on the “japa syndrome,” where young Nigerians seek opportunities abroad due to domestic challenges. “I support it, totally,” he declared, adding that joblessness is a betrayal of a generation. However, he encouraged those who remain in the country to strive to create an impact and build a legacy.
