Experts warn Nigeria is losing billions daily to crude oil theft, vandalism and inefficiency.
They urge swift digital monitoring and tougher enforcement to protect national revenue and restore investor confidence.
Industry experts have raised alarm that Nigeria is losing billions of dollars each day because of crude oil theft, vandalism and waste. They are urging the government and oil companies to adopt digital monitoring systems immediately to protect the economy.
Speaking at a leadership forum in Houston, U.S., petroleum engineer Charles Deigh of Nigerian Agip Oil Company and mechanical engineer Dr. Oluwatoyin Gbadeyan said Nigeria’s oil validation system is “outdated and opaque,” making theft and inefficiency easier. They stressed that each barrel of oil should benefit the country but losses from sabotage and weak accountability continue to drain government revenue.
“This is not just unfortunate. It is unacceptable. Nigeria cannot afford to let another barrel go to waste,” the experts said.
They praised efforts by the Nigerian Upstream Petroleum Regulatory Commission, including the Nigeria Upstream Measurement System, the Automated Hydrocarbon Accounting System and the metering provisions of the Petroleum Industry Act 2021. However, they warned that without strict enforcement these initiatives may end up as “empty gestures rather than game changers.”
Oil theft, spillage and waste have long been problems in Nigeria. The United Nations estimates that at least 13 million barrels of crude oil have been spilled since 1958 in more than 7,000 incidents. Government officials say international and regional gangs are taking advantage of security gaps to steal oil across Africa.
Bashir Ojulari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, said in August that oil theft is a complex cross-border crime requiring collaboration among governments to stop it.
The experts advised using digital tools such as Internet of Things sensors, drones, satellites, blockchain tracking and artificial intelligence to monitor oil facilities. They said these measures could help reduce the estimated 200,000 barrels lost every day, restore investor confidence, improve transparency and free up funds for schools, hospitals and infrastructure.
They added that technology alone will not solve the problem unless backed by government action, full implementation of the PIA and penalties for offenders. Oil companies should invest in permanent monitoring systems, while host communities should embrace transparency for shared benefits.
“Nigeria stands at the crossroads of opportunity and decline. Oil theft and inefficiency are not inevitable, they are the consequences of inaction and neglect,” the experts stated, warning that without decisive steps the country will continue to lose revenue, while urgent digitalization could drive growth and stability.
