Billionaire businessman Tony Elumelu has called on Nigerian security agencies to identify and expose those responsible for stealing the country’s crude oil, particularly through the use of large vessels operating in Nigerian waters. Elumelu’s comments, made during an interview with the Financial Times, underscore the ongoing issue of oil theft, which he claims has significantly contributed to the withdrawal of foreign oil companies from Nigeria.
Elumelu, who leads Heirs Holdings, has personally experienced the impact of crude oil theft. He recounted how, in 2022, his company had to halt production due to rampant theft, which saw over 95% of their oil output stolen. “How can we be losing over 95 percent of oil production to thieves?” he questioned. He cited the example of the Bonny Terminal, which should receive over 200,000 barrels of crude oil daily but instead got less than 3,000 barrels, leading Shell to declare force majeure.
Despite these challenges, oil theft continues to plague his operations. Elumelu revealed that even now, 18 percent of the crude pumped from his fields is stolen. “42,000 barrels of crude are pumped out daily. Theft still takes away about 18 percent of production,” he stated.
Elumelu criticized the lack of accountability and transparency in addressing this issue. He expressed frustration that the security agencies have not yet identified those behind the thefts, noting that such large-scale operations require significant resources and planning. “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 demanded.
In addition to oil theft, Elumelu also discussed the challenges he faced under the previous administration of President Muhammadu Buhari. He revealed that a deal to acquire an oilfield was blocked by Buhari and his late Chief of Staff, Abba Kyari, despite his company’s $2.5 billion bid. Elumelu described the decision as illogical, especially since the purchase would have been from a foreign company.
Reflecting on his investment in Nigeria’s oil sector, Elumelu explained that his decision to buy a 45 percent stake in an oilfield three years ago was driven by a desire to ensure energy security for the country. “Energy security is crucial for a country that doesn’t produce enough electricity for its roughly 200 million citizens,” he said.
Elumelu also touched on the phenomenon known as the “japa syndrome,” where young Nigerians leave the country in search of better opportunities abroad. He expressed support for those who choose to seek opportunities elsewhere due to the lack of job prospects at home, while also encouraging those who remain to strive to make a lasting impact.
As Nigeria continues to grapple with the twin challenges of oil theft and economic instability, Elumelu’s remarks highlight the urgent need for effective governance and accountability to secure the nation’s resources and future.
