Ubogu Advocates Good Governance As Strategic Tool In Preventing Oil Theft, Pipeline Vandalism

The country director of Network of Professionals for Good Governance (NPGG), Prof Rowell Ubogu, an academic, training and entrepreneur consultant has highlighted that the Niger Delta region is experiencing the worst environmental degradation due to the activities of the legal and illegal crude oil operations.

Professor Ubogu stated this at the public hearing on the Investigation of the Incessant and Nefarious Acts of Crude Oil Theft in the Niger Delta and the Actors.

The event was organized by the AD-HOC Committee on Incessant Crude Oil Theft in Abuja.

In his opening remarks, the Deputy President of the Nigerian Senate, Senator Barau Jibrin, decried the escalating incidents of oil theft in the Niger Delta, describing it as an “economic sabotage of the highest order.”

He called for greater accountability from security agencies, the Nigerian National Petroleum Company Limited (NNPCL), and all stakeholders in the oil and gas sector, including private pipeline surveillance contractors.

Senator Jibrin also hinted at the possibility of legislative reforms aimed at strengthening oil infrastructure monitoring, increasing penalties for oil theft, and fostering better collaboration between communities and federal agencies.

Senator Ned Nwoko, the Chairman of the AD-HOC Committee also delivered a strong message on the need to urgently address the crisis.

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He described oil theft as a “national economic sabotage,” costing Nigeria billions in lost revenue annually and severely undermining development efforts.

According to him, ” Oil theft must stop — it’s killing our economy from within.”

Speaking shortly after, Professor Ubogu said that these illicit activities have become deeply entrenched problems with serious implications for the nation’s economy, environment and security.

Recent statistics in 2025, indicate that Nigeria reportedly loses 90,000 to 120,000 barrels to oil theft, while estimated financial losses are over $1 billion USD in the first quarter of 2025 alone due to the theft and pipeline damage.

Also, over 270 pipeline vandalism incidents were recorded between January and April 2025, mainly in Rivers, Bayelsa and Delta States.

The Country Director of NPGG lamented that the causes of oil theft in Nigeria are complex and multi- faceted. Among them are poverty and unemployment in oil producing communities, corruption in Nigeria’s oil industry, aging infrastructure, collusion and complicity among security personnel and government officials and also lack of community benefits.

He emphasized that good governance is a critical factor in preventing oil theft and pipeline vandalism.

“Effective governance can help address the root causes of these issues, promote transparency and accountability, and ensure that the oil industry operates in a sustainable and responsible manner”.

Furthermore, Prof Ubogu assured that if the Petroleum Industry Act (PIA) of 2021 is well implemented, the oil and gas industry will be revitalized.

Among other things, the Act aims to foster sustainable prosperity within the Host Communities providing them with direct social and economic benefits. In addition to the PIA, the two key projects, the Deep Blue Project and the Falcon Eye Project launched for maritime surveillance should be implemented for sustainability. Both projects involving maritime surveillance that were designed to provide actionable intelligence information in times of maritime security threats should be fully in operation.

“Some other key aspects of good governance are to ensure that the benefits of oil production are shared equitably among stakeholders, severe legal reforms, using satellite technology to track ships carrying stolen crude, engagement of private security firms and anti-money laundering activities such as involving the commercial banks to act as whistle blowers if they observe signs of illegal funds transfers.

“There are no easy fixes for Nigeria’s crude oil theft problem. But there are options to help reduce the problem, which could, if managed well, have positive effects for curbing and reducing the huge losses of the nation’s major source of revenue.”