By Emeka Ononamadu
Listening to the insightful and candid interview of Dr. Orji Ogbonnaya Orji, the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), on Signature TV was both enlightening and deeply concerning. His frank and objective analysis of Nigeria’s crude oil production challenges echoes longstanding concerns raised as far back as 2001. The fundamental issue remains entrenched corruption, which has persistently prevented Nigeria from providing real-time crude production data, a standard practice in countries like Saudi Arabia, where ARAMCO maintains transparent and accurate figures.
The common excuse given by successive governments—that Nigeria lacks the technology to meter crude oil production—is a weak and unacceptable justification. Metering oil wellheads is not rocket science. It is a globally available technology already adopted by many oil-producing nations. If Saudi Arabia, Norway, and even smaller oil-producing nations can accurately track their crude oil production, why has Nigeria consistently failed to do so? The unfortunate reality is that the figures we receive on crude production are those handed down to us, leaving the Nigerian economy vulnerable to manipulation, fraud, and large-scale theft. This lack of transparency has turned Nigeria’s energy sector—supposedly the backbone of the economy—into a black hole of uncertainty and corruption.
As long as Nigeria lacks real-time production data, corruption in the oil sector will persist indefinitely. The consequences of this systemic failure are devastating. Oil theft and mismanagement continue to drain the national treasury, depriving ordinary Nigerians of the benefits of their own natural resources. The greatest victims are the host communities, who suffer from environmental degradation, loss of livelihoods, and increased poverty, while corrupt government officials, international oil companies (IOCs), and non-state actors siphon the wealth of the nation.
The Questionable $800 Billion Oil Earnings and Nigeria’s Rising Debt
Nigeria’s earnings from crude oil since 1999 are estimated to be around $800 billion. However, this figure is highly questionable because real production quantities have never been accurately recorded due to the absence of metering systems at oil wellheads. If Nigeria does not know its true production levels, how can it accurately account for its revenue? This uncertainty makes it easier for oil theft, mismanagement, and corruption to flourish, while leaving the country in perpetual economic distress.
Despite earning this massive sum from crude oil sales, successive governments have continuously resorted to borrowing, plunging Nigeria into unsustainable debt. Today, Nigeria is one of the most indebted nations in the world, particularly in relation to its GDP. Our national foreign and domestic debt is approaching one trillion dollars, a financial burden that was previously cleared by the Obasanjo administration. The reckless accumulation of debt, despite huge oil earnings, further highlights the mismanagement and leakage of funds within the sector.
If wellhead metering had been installed across the country’s oil fields, it would have been possible to determine the total amount lost to oil theft and spillages. The inability or unwillingness of Nigeria’s security agencies to safeguard the country’s collective wealth is a national disgrace. The recent revelation by Senator Adams Oshiomhole that illegal solid mineral merchants operate openly and are backed by retired military officials further exposes the deep corruption within the system. Similarly, the private crude oil security contractor, King Tompolo, has made similar allegations against the Nigerian military regarding crude oil theft. This means that identifying the culprits behind oil and mineral theft is not the issue; the real problem is the political will to address it head-on.
Who Opposes Oil Metering?
The question that remains unanswered is: Who is resisting the metering of Nigeria’s crude oil production? Is it the Nigerian government officials, the IOCs, or the non-state actor thieves? The refusal to install metering systems at oil wellheads raises serious concerns about the complicity of various stakeholders in the sector. If any IOC refuses to comply with metering, they should be shown the exit door. They have neither a moral nor legal right to resist the installation of meters. Their refusal would only confirm their involvement in fraudulent activities.
The government’s claim that oil theft has reduced but not been eliminated also requires further scrutiny. Without a proper metering system, how can we independently verify such claims? Oil theft does not affect the elites who manipulate the system for personal gain—it is the poor and defenseless Nigerians who bear the brunt of these crimes. The stolen wealth of the nation is funneled into the pockets of the executive, legislature, and judiciary, while ordinary citizens struggle with rising inflation, higher taxes, and worsening economic conditions.
At a time when the government should be urgently addressing these revenue losses, it has instead shifted the burden of economic reforms onto innocent citizens who have no direct or indirect relationship with the corruption in the oil sector. Tariff hikes, higher taxes, increased electricity bills, soaring telecom costs, and inflated prices of goods and services are all being imposed on struggling Nigerians, while the real criminals responsible for the economic downturn remain untouched. Why has the government neglected oil wellhead metering, despite it being the fastest means of reviving the economy?
The Persistent Menace of Gas Flaring: Another Face of Corruption
One of the most glaring forms of environmental and economic corruption in Nigeria’s extractive sector is the persistent gas flaring, a practice that has been successfully eradicated in many other oil-producing nations. In developed oil economies, gas is a major economic asset, harnessed for domestic and industrial use. Yet, in Nigeria, gas flaring has continued for decades, destroying farmlands, polluting the air, and causing severe health problems for host communities.
The courageous Obasanjo administration made initial attempts to address gas flaring but ultimately backed down, signing agreements that provided more of an escape route for oil companies rather than a real solution. The result? Decades later, Nigeria remains one of the world’s top gas-flaring nations, losing billions of dollars annually while communities suffer. The question is: Why has Nigeria failed to end gas flaring when others have? Who benefits from this reckless environmental and economic sabotage?
The answer is simple: corrupt government officials and oil companies that refuse to invest in gas utilization infrastructure. Rather than compel oil companies to capture and utilize gas for power generation and domestic use, Nigeria has allowed them to continue wasting this valuable resource. The lack of strict enforcement and accountability means that despite multiple deadlines set for eliminating gas flaring, nothing has changed.
If Nigeria truly wants to revamp its economy, it must take a firm stance against gas flaring. The gas being wasted daily could be used to power industries, reduce electricity shortages, and even generate revenue through exportation. The continued flaring of gas is not just an environmental crime but an economic suicide that must be stopped immediately.
Recommendations for Action
To address these pressing issues, the following steps should be taken immediately:
1. Citizens and Host Communities
• Demand full metering of crude oil wellheads to ensure accountability.
• Organize protests and advocacy campaigns to pressure the government into action.
• Demand an end to gas flaring and insist on investment in gas utilization projects.
2. Civil Society Organizations (CSOs)
• Launch sustained advocacy for oil sector reforms, including real-time metering.
• Engage international partners to demand transparency from IOCs and hold them accountable.
• Pressure the government to enforce existing gas-flaring laws without exemptions.
3. Media
• Investigate and report on the discrepancies in oil revenue and production data.
• Expose oil companies and government officials responsible for delaying gas utilization projects.
4. Government
• Mandate the immediate installation of meters at all oil wellheads.
• Enforce an outright ban on gas flaring with heavy penalties for defaulters.
Conclusion
The corruption in Nigeria’s oil sector has left millions in poverty while enriching a few. Until Nigerians demand real accountability, these problems will persist.
Ononamadu can be reached through ononamadu@yahoo.com
