Industry specialists have sounded the alarm over Nigeria’s daily losses from crude oil theft, pipeline vandalism, and inefficient management, urging the country to adopt digital technologies to better protect its oil resources.
At a leadership forum in Houston, U.S., petroleum engineer Charles Deigh of Nigerian Agip Oil Company and mechanical engineer Dr. Oluwatoyin Gbadeyan pointed out that Nigeria’s current oil monitoring systems are outdated and lack transparency, creating loopholes that encourage theft and waste. They stressed that each barrel of oil should contribute to national development, but ongoing inefficiencies are undermining government revenue.
“This is more than unfortunate — it is unacceptable. Nigeria must act decisively to stop wasting its resources,” the experts said.
They acknowledged initiatives by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), such as the Nigeria Upstream Measurement System, the Automated Hydrocarbon Accounting System, and the Petroleum Industry Act 2021 metering provisions. However, they warned that without strict enforcement, these measures could fail to make a meaningful impact.
Oil theft and spills have long been a problem in Nigeria. The United Nations reports that over 13 million barrels of oil have spilled in at least 7,000 incidents since 1958. Many cases are linked to international and regional criminal networks exploiting security gaps.
Bashir Ojulari, Group CEO of the Nigerian National Petroleum Company Limited, emphasized that oil theft is a sophisticated, cross-border crime that requires coordinated efforts to address.
Experts recommended the immediate use of digital technologies such as IoT sensors, drones, satellites, blockchain tracking, and AI to monitor oil infrastructure and reduce losses. With around 200,000 barrels reportedly lost each day, they said these measures could boost transparency, restore investor confidence, and free up resources for critical sectors like education, healthcare, and infrastructure.
They stressed that technology alone is insufficient without strong government enforcement and called on oil companies and host communities to embrace accountability. “Nigeria stands at a crucial crossroads. Oil theft and inefficiency are preventable — they are the result of neglect and inaction,” the experts concluded.
