Nigerian businessman and philanthropist Tony Elumelu has urged the federal government and security agencies to expose those responsible for the rampant crude oil theft plaguing the nation.
In an interview published by the Financial Times on Friday, Elumelu stressed the devastating effect of this theft on Nigeria’s economy, which has contributed to the exodus of international oil companies (IOCs) from the country.
Expressing his alarm, Elumelu identified oil theft as a major factor driving IOCs to divest from Nigeria’s onshore assets. He shared his own experience, revealing that criminal syndicates had siphoned off crude oil from his company’s pipelines, leading to a significant drop in production.
Elumelu had previously voiced his frustration with the situation in 2022, when the problem worsened. In a tweet, he lamented, “How can we be losing over 95 percent of oil production to thieves? The Bonny Terminal should be receiving over 200,000 barrels of crude oil daily, but it receives less than 3,000 barrels, forcing Shell to declare force majeure. Nigeria’s failure to meet its OPEC production quota is not due to low investment, but theft.”
Criticizing the Nigerian authorities for their failure to address the issue, Elumelu compared their inefficiency to the swift action taken by security agencies in other countries. He questioned, “This is oil theft, not stealing a bottle of Coke you can put in your pocket. The government should know who is behind this. Look at America — when Donald Trump was shot at, they quickly identified the shooter. Our security agencies should tell us who is stealing our oil. You bring vessels into our territorial waters, and we don’t know?”
Despite ongoing theft, which continues to affect about 18 percent of his company’s daily production of 42,000 barrels, Elumelu remains cautiously optimistic but critical of the government’s efforts. He also recalled a previous incident involving the administration of former President Muhammadu Buhari, which allegedly blocked his attempt to acquire an oilfield.
Elumelu revealed that in 2017, Heirs Holdings had raised $2.5 billion to purchase the oilfield, but the deal was halted by Buhari and his late Chief of Staff, Abba Kyari, who argued that such a strategic asset could not be sold to a private operator. Elumelu criticized this decision as illogical, noting that the oilfield was being sold by a foreign company.
Elumelu, who amassed his wealth outside the oil industry, explained that his decision to purchase a 45 percent stake in an oilfield three years ago, coinciding with IOCs’ divestment from Nigeria’s shallow water assets, was driven by a commitment to ensure the country’s energy security. “We wanted to become a Fortune 500 company and calculated 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 said.
Addressing the growing trend of Nigerians emigrating in search of better opportunities, known as the “japa syndrome,” Elumelu voiced his support for those seeking greener pastures abroad. “I support it, totally. I don’t have a problem with people saying, ‘I’m going to Canada, the UK, or the US.’ Joblessness is the betrayal of a generation. You’ve gone to school and returned with your dreams and aspirations, only to find no opportunities. For those who choose to find solutions elsewhere, no one should stop them. But for those who stay, they should strive to create an impact and build a legacy,” he stated.
