Reps panel mulls laws to tackle crude oil theft

The house of representatives committee on petroleum resources (upstream) and the special committee on crude oil theft are considering introducing five bills to address crude oil theft.

Speaking at the joint session on Tuesday, Alhassan Doguwa, chairman of the committee on petroleum resources (upstream), said legislative intervention is needed to protect national assets in the oil and gas sector.

Doguwa explained that one of the bills intends to establish a national commission to prosecute pipeline vandalism, among other crimes.

“The committees and indeed the entire house are deeply concerned about the increasing insecurity and criminal activities around oil-producing areas,” Doguwa said.

“This intervention is a legislative response intended to complement government efforts in protecting these critical national assets.

“In my view, these two committees essentially deal with the same core issue: Crude oil. While one focuses on theft and security, the other covers the drilling and export processes.

“That is why we have decided to meet jointly and work together on these legislative proposals.”

Doguwa said one of the bills before the session, spearheaded by Tajudeen Abbas, speaker of the house, proposes the creation of a commission to oversee the decommissioning of oil assets, which has raised concerns among host communities.

“The decommissioning process is a major policy priority of the current administration, but there are gaps in oversight,” he said.

“That’s why the speaker and other leaders of the house have shown interest in backing legislation that provides statutory authority and legal framework for a commission to manage this process, while also ensuring that the interests of host communities are taken into account.”

Crude oil theft has cost Nigeria billions in lost revenue.

In 2022, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said Nigeria lost $1 billion in the first quarter of that year due to oil theft.