Abbas: weak enforcement, desperate communities responsible for instability in oil sector
House of Representatives Speaker Tajudeen Abbas has said desperate communities and weak enforcement structures cause instability in the oil sector with dire consequences. The Speaker called for collaboration to enforce
House of Representatives Speaker Tajudeen Abbas has said desperate communities and weak enforcement structures cause instability in the oil sector with dire consequences.
The Speaker called for collaboration to enforce surveillance over the nation’s critical assets,
He hailed Tantita Security Services Nigeria Limited for the successes it has recorded in pipeline surveillance.
The Speaker noted that the security company’s efforts have helped the nation to increase its crude oil production.
Abbas spoke yesterday in Abuja at a parliamentary roundtable on pipeline surveillance contract, crude oil theft and the celebration of success stories organised by the National Assembly Joint Committees on Petroleum Resources.
The Speaker noted that despite the ongoing tensions in the Middle East and the protracted conflict involving Russia and Ukraine, the need for valiant efforts at finding alternative energy sources has become necessary.
He said crude oil still remains the largest source of primary energy in the world, especially for the transport sector, where it still powers 95 per cent of all vehicles, aircraft, and ships.
Abbas said the current crises, particularly with the closure of the Strait of Hormuz in Iran, has resulted in price surges and supply shortages, with consequential impact on the nation’s economic survival.
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He said: “As a nation, we must rise to the challenge. This roundtable is a clear indication that the National Assembly is ready to lead the way.”
Abbas stressed that for everyone to understand why the surveillance contract became necessary, “we must remember that Nigeria’s journey as an oil-producing nation has been a very challenging one”.
He added: “The discovery of petroleum has both earned us massive foreign exchange and resulted in environmental degradation and despair. As a result, the Niger Delta has witnessed profound agitations over the years, which often resulted in pipeline vandalism, crude oil theft, and illegal refining activities.
“Desperate communities and weak enforcement structures created a climate of instability in the oil sector with staggering consequences.
“At some point, Nigeria was losing billions of dollars annually as between 10 to 30 per cent of crude oil production was lost to theft, undermining national revenue and questioning our capacity to remain a reliable oil producer.
“It was within this context that the Federal Government introduced the pipeline surveillance contract, including the engagement of private security actors and community-based structures.
“These interventions were designed to provide security to our oil facilities, with the understanding that without the help of the communities, where these pipelines and other infrastructure were located, the job of securing them would be impossible.
“In the end, the synergy of private surveillance providers, our security agencies, and community engagement led to remarkable improvements in our daily production quotas.”
The Speaker also said there had been clear undeniable and compelling success stories in the nation’s oil sector.
He said: “Recent reports indicate that most of the illegal tapping points have been dismantled, production levels have improved significantly and oil receipts are approaching near-total delivery to export terminals, compared to the alarming losses of previous years when production sometimes plummeted to about 700 barrels per day.
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“Today, largely due to these surveillance/security efforts, we have been able to ramp up production to about 1.8 million barrels per day. Importantly, the surveillance contract has been able to create direct employment for thousands of Niger Delta youths who were formerly agitators, providing a legitimate
alternative to crime, and placing security back in the hands of the people who host the facilities.
“There is no doubt that we can do better. There are still several challenges, particularly as they concern accountability, transparency, and the effectiveness of certain surveillance frameworks.
“Recent public discourse suggests that crude oil theft still occurs at concerning levels, sometimes even under existing security arrangements. This underscores the need for continuous oversight and reform.”
The Speaker stated that the National Assembly has remained at the forefront of confronting the challenges in the oil sector and has, through legislation, oversight, and appropriation, taken deliberate steps to strengthen Nigeria’s response to threats to our oil industry.
He said: “We have enacted and reviewed laws such as the Petroleum Production and Distribution (Anti-Sabotage) Act and other relevant statutes aimed at deterring pipeline vandalism while enforcing stringent penalties.
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“We have also worked to strengthen institutions like the National Oil Spill Detection and Response Agency (NOSDRA), recognising the need for improved monitoring and environmental accountability.
“Both are the fruits of comprehensive and deliberate policy actions that were enabled by the passing of the landmark Petroleum Industry Act (PIA). Some of the provisions of this act, like the Host Community Development Trust, made Corporate Social Responsibility a legal mandate and gave host communities a direct financial stake in the profitability of the oil sector.
“Moreover, by legislating that communities forfeit their entitlement for the year if vandalism occurs in their domain, the law operationalized the concept of ‘shared responsibility’. “Communities now police their own areas, knowing that an attack on a pipeline becomes an attack on their trust fund.
“The 10th National Assembly has continued to take bold legislative steps to institutionalise the gains of the PIA. From maintaining a rigorous oversight of the Act to ensure steady implementation, to our recent investigative hearings on oil theft, we are closing the legal loopholes that once allowed criminals to thrive.
“Furthermore, this Assembly has exercised its constitutional mandate by probing aspects of the surveillance contract, approving critical funding for pipeline security, and insisting that crude oil theft be treated not just as an economic crime, but as a national security threat requiring coordinated action across agencies.
“In summary, we have consistently emphasized that curbing crude oil theft must be a collective responsibility, involving government, host communities, security agencies, and private operators alike.”
Abbas noted that the event was an opportunity to advance the fortunes of the oil industry by capitalising on the gains made so far from the surveillance contract.
