Experts Warn Nigeria Losing Billions Daily to Oil Theft, Call for Digital Overhaul

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Industry experts have warned that Nigeria is losing billions of dollars every day to crude oil theft, vandalism, and wastage, urging urgent digitalisation of production and monitoring systems to safeguard the economy.

In a joint presentation at a leadership forum in Houston, petroleum engineer Charles Deigh of the Nigerian Agip Oil Company and Dr. Oluwatoyin Gbadeyan, a mechanical engineer and researcher in composites and energy systems, described Nigeria’s current oil validation process as “outdated and opaque.”

They argued that loopholes in accountability continue to enable sabotage, theft, and inefficiency.
“Every barrel of oil should represent national prosperity, but losses are eroding government revenue and development,” they said. “This is not just unfortunate — it is unacceptable. Nigeria cannot afford to let another barrel go to waste. We need bold, transformative action.”

Commendation and Caution

The experts acknowledged recent initiatives by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), including the Nigeria Upstream Measurement System, the Automated Hydrocarbon Accounting System, and the metering provisions of the Petroleum Industry Act (PIA) 2021.

However, they cautioned that without strict enforcement, these measures risk becoming “empty gestures rather than game-changers.”

Scale of the Problem

Oil theft, spillage, and wastage remain a persistent challenge in Nigeria, with both economic and environmental consequences. According to the United Nations, at least 13 million barrels of crude oil—equivalent to 1.5 million tonnes—have been spilt since 1958 in over 7,000 incidents.

While some incidents have been linked to oil corporations, the Nigerian government has identified international and continental criminal gangs as major players in organised crude oil theft.

In August, NNPCL Group Chief Executive Officer, Bashir Ojulari, told the Africa Chief of Defence Staff Conference in Abuja that oil theft “is not a localised crime but a sophisticated operation requiring cross-border collaboration.”

Digital Solutions Proposed

To stem the losses—estimated at 200,000 barrels per day—the experts recommended the deployment of advanced digital tools such as:

• Internet of Things (IoT) sensors

• Drones and satellite surveillance

• Blockchain tracking systems

• Artificial intelligence (AI) monitoring

According to them, these measures could enhance transparency, curb leakages, rebuild investor confidence, and free resources to fund schools, hospitals, and infrastructure.

Beyond Technology: Enforcement and Accountability

The experts stressed that technology alone will not solve the problem without strong political will, consistent enforcement of the PIA 2021, and strict consequences for non-compliance.

They also urged oil companies to invest in durable monitoring systems, while calling on host communities to embrace transparency as a pathway to shared prosperity.

“Nigeria stands at the crossroads of opportunity and decline,” they warned. “Oil theft and inefficiency are not inevitable — they are the consequences of inaction and neglect. Urgent digitalisation backed by enforcement can drive growth, stability, and diversification.”