Energy experts have raised alarm that Nigeria is losing billions of dollars daily to crude oil theft, vandalism and wastage. They called for urgent digitalisation of production and monitoring systems to protect the economy.
Presenting a joint paper at a leadership forum in Houston, U.S., petroleum engineer Charles Deigh of Nigerian Agip Oil Company (NAOC) and mechanical engineer Dr. Oluwatoyin Gbadeyan said the country’s oil accountability system was outdated and opaque, leaving room for theft and inefficiency.
They stressed that every barrel of oil should benefit the nation, but sabotage and poor accountability were undermining government revenue and development.
The experts urged full enforcement of reforms by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), including the Nigeria Upstream Measurement System (NUMS), the Automated Hydrocarbon Accounting System (AHAS) and the metering provisions of the Petroleum Industry Act (PIA) 2021.
They also recommended deploying Internet of Things (IoT) sensors, drones, satellites, blockchain and artificial intelligence across oil infrastructure to curb leakages.
According to them, such technologies could help reduce the estimated 200,000 barrels lost daily, boost investor confidence, improve transparency and free funds for schools, hospitals and infrastructure.
They emphasised that technology must be backed by strong political will, strict enforcement of the PIA and sanctions for non-compliance.
“Nigeria is at a turning point. Crude theft and inefficiency are the result of inaction, not inevitability,” the experts warned.
They cautioned that failure to act decisively would prolong revenue losses, while urgent reforms could drive stability, growth and economic diversification.