Nigerian billionaire Tony Elumelu believes that Nigerians who steal the nation’s crude oil, particularly through vessels that go through its territorial seas, should be apprehended by the government and security agencies in Nigeria. This was said by Elumelu in an interview that the Financial Times released on Friday. Elumelu, who fears oil theft, claimed that the threat was a factor in foreign oil corporations pulling out of Nigeria. He added that once criminal gangs started stealing crude from his pipelines, he personally witnessed why major oil firms were partially withdrawing from their onshore holdings.
When Elumelu’s company was forced to halt production in 2022, he resorted to social media and tweeted, asking how it was that over 95% of oil production was going to thieves. Consider the Bonny Terminal, which should receive more than 200,000 barrels of crude oil per day but only receives 3,000 barrels, forcing the operator, Shell, to issue a force majeure statement. Nigeria’s inability to reach its output quota for OPEC is not due to a lack of investment, but rather to outright theft! Oil-producing nations are grinning in the interim as their foreign reserves grow. What issue does Nigeria have? Our leaders must be held more responsible.
Elumelu, in an interview with Financial Times, expressed hope but also noted that 18% of the crude extracted from his field is still taken by oil thieves. Every day, 42,000 barrels of crude are pumped out. According to him, theft still accounts for roughly 18% of production. When asked who was responsible for the crime, he said, “This is not about stealing a bottle of Coke you can put in your pocket; this is about oil theft.” The government ought to be aware of this and inform us. Take a look at America – after Donald Trump was shot, the identity of the shooter was rapidly discovered. We should find out from our security services who is stealing our oil. You enter our territorial seas with boats, and we have no idea why?
The 61-year-old founder of Heirs Holdings recalled how the previous administration of President Muhammadu Buhari allegedly stopped him from acquiring an oilfield.
He disclosed that Heirs Holdings had been looking to purchase the oilfield since 2017, having raised $2.5bn to purchase a different one.
But in a twist, he claimed that former president Buhari and his late Chief of Staff, Abba Kyari, blocked the deal.
He said he was told Nigeria could not allow something of such strategic importance to fall into the hands of a private operator.
“This defied logic,” he added since he would have been purchasing it from a foreign company.
As one of the few Nigerians who made their fortunes outside of oil, Elumelu revealed that his decision to buy a 45 per cent stake in an oilfield three years ago when international oil companies such as Shell, Total and Eni were selling off their shallow water assets in Nigeria was to give the country energy security in the face of low power supply.
“We wanted to become a Fortune 500 company and we estimated what we needed. It’s not naira, it’s huge dollars. Energy security is crucial for a country that doesn’t produce enough electricity for its roughly 200 million citizens,” he added.
Speaking on the japa syndrome, Elumelu declared, “I support it, totally. “I don’t have a problem with people saying ‘I’m going to Canada, UK or US.’
“Joblessness is the betrayal of a generation. You’ve gone to school and come back with your dreams and aspirations and you don’t have the opportunity . For people who decide to find solutions elsewhere, no one should stop them. But for those who decide to stay, they should try to create an impact and build a legacy.”