Nigerian businessman Tony Elumelu has expressed concern over the impact of oil theft on Nigeria’s inability to meet its OPEC production quota. In an interview with the Financial Times, Elumelu called on the government and security agencies to identify those responsible for stealing the country’s crude oil, especially since the theft involves large vessels moving through Nigeria’s territorial waters.
Elumelu, who has firsthand experience with the issue, revealed that the rampant theft of crude oil contributed to the divestment of international oil companies from Nigeria. He shared that criminal gangs began siphoning crude from his pipelines, leading his company to shut down production in 2022. At that time, he took to social media to express his frustration, stating, “How can we be losing over 95 percent of oil production to thieves? The Bonny Terminal, which should receive over 200,000 barrels of crude oil daily, instead receives less than 3,000 barrels, forcing Shell to declare force majeure.”
He emphasized that Nigeria’s failure to meet its OPEC production quota is not due to a lack of investment but rather due to rampant theft. While other oil-producing countries are benefiting from rising foreign reserves, Nigeria continues to suffer because of this issue. Elumelu urged Nigerians to hold their leaders accountable.
Despite his concerns, Elumelu expressed some optimism, noting that oil theft still accounts for 18 percent of the crude from his fields. His operations pump out 42,000 barrels of crude daily, but theft continues to take a significant portion.
When asked who was behind the theft, Elumelu highlighted the scale of the crime, saying, “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 questioned how large vessels could enter Nigeria’s territorial waters undetected by security agencies.
Elumelu also recounted how the previous administration under President Muhammadu Buhari allegedly blocked him from acquiring an oilfield. He claimed that since 2017, Heirs Holdings had been trying to purchase the oilfield, having raised $2.5 billion for a different purchase. However, former President Buhari and his late Chief of Staff, Abba Kyari, allegedly prevented the deal from going through.
On the topic of the mass relocation of Nigerians abroad, Elumelu expressed his support, stating, “I support it totally. I don’t have a problem with people saying ‘I’m going to Canada, the UK, or the US.’” He acknowledged that joblessness is a significant issue, especially for those who have completed their education and returned home with dreams and aspirations, only to find limited opportunities. He believes that those who choose to seek opportunities abroad should not be discouraged, but those who remain should strive to create an impact and build a lasting legacy.