Industry experts have raised alarm that Nigeria is losing billions of dollars each day to crude oil theft, vandalism, and wastage, warning that the country’s economy could face deeper strain unless urgent reforms are implemented. Speaking at a leadership forum in Houston, United States, petroleum engineer Charles Deigh of the Nigerian Agip Oil Company and mechanical engineer and composites researcher Dr. Oluwatoyin Gbadeyan said Nigeria’s current oil monitoring and validation systems are “outdated and opaque,” creating loopholes that enable large-scale theft and inefficiency.
They argued that crude oil, which should serve as a pillar of national prosperity, is instead becoming a source of massive financial leakage. “Every barrel stolen or wasted represents lost revenue for schools, hospitals, and infrastructure. This is not just unfortunate,it is unacceptable. Nigeria cannot afford to let another barrel go to waste. We need bold, transformative action,” the experts said in their joint paper.
The duo commended recent initiatives by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), such as the Nigeria Upstream Measurement System, the Automated Hydrocarbon Accounting System, and the metering provisions in the Petroleum Industry Act (PIA) 2021. However, they warned that without strict enforcement, these frameworks risk becoming symbolic rather than impactful.
Oil theft and wastage have long plagued Nigeria, both economically and environmentally. According to the United Nations, the country has lost at least 13 million barrels,about 1.5 million tonnes,of crude oil to spills across more than 7,000 incidents since 1958. While some of these incidents have been linked to oil companies’ negligence, the federal government maintains that theft is largely driven by well-coordinated international and continental criminal networks that exploit security gaps.
In August, Bashir Ojulari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), told military chiefs at the Africa Defence Staff Conference in Abuja that oil theft is far from a localised issue. He described it as a “sophisticated cross-border operation” that requires regional and global collaboration to dismantle.
To stem the losses, Deigh and Gbadeyan recommended the urgent deployment of advanced digital solutions across Nigeria’s oil infrastructure. These include Internet of Things (IoT) sensors to monitor pipelines in real time, drones and satellites for aerial surveillance, blockchain systems to enhance supply chain transparency, and artificial intelligence to predict and prevent leakages or sabotage.
According to them, such technologies could significantly reduce the estimated 200,000 barrels lost daily, restore investor confidence, and improve accountability within the industry. They added that increased transparency would not only boost government revenue but also allow resources to be redirected toward critical development needs like education, healthcare, and infrastructure.
However, they stressed that technology alone cannot resolve the crisis. Strong political will, strict enforcement of existing laws, and real consequences for non-compliance are equally essential. They urged oil companies to adopt permanent monitoring mechanisms rather than temporary fixes and encouraged host communities to support transparency as a pathway to shared prosperity.
“Nigeria stands at a crossroads of opportunity and decline. Oil theft and inefficiency are not inevitable,they are the consequences of inaction and neglect. With decisive action and full digitalisation, Nigeria can reverse the losses, safeguard its economy, and drive sustainable growth,” they concluded.
