Nigeria Losing Billions to Oil Theft daily due to sabotage and outdated systems. Experts call for urgent digitalisation and policy enforcement

Nigeria Losing Billions to Oil Theft, Experts Warn Nigeria Losing Billions to Oil Theft every day due to outdated monitoring systems, sabotage, and policy inefficiencies, according to industry experts who have called for urgent digital transformation of the oil and gas sector.

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Speaking at a leadership forum in Houston, U.S., Charles Deigh, a petroleum engineer at the Nigerian Agip Oil Company, and Dr Oluwatoyin Gbadeyan, a mechanical engineer and researcher, described Nigeria’s current oil validation system as “opaque and outdated”, leaving the economy vulnerable to theft and massive revenue loss.

“This is not just unfortunate — it is unacceptable. Nigeria cannot afford to let another barrel go to waste. We need bold, transformative action,” they declared in a joint paper.

They estimated that Nigeria loses up to 200,000 barrels of crude oil daily, a figure that severely hampers national development, drains foreign reserves, and worsens the country’s economic outlook.

The experts commended regulatory steps taken by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), such as the Nigeria Upstream Measurement System, Automated Hydrocarbon Accounting, and key provisions of the Petroleum Industry Act (PIA) 2021.

However, they warned that these tools would remain “empty gestures” without full implementation and strict enforcement.

The United Nations estimates that at least 13 million barrels of oil have been spilt in Nigeria since 1958 across over 7,000 incidents, making oil loss not just an economic tragedy but an environmental crisis.

Adding to the complexity, the NNPC Ltd CEO, Bashir Ojulari, recently described oil theft as a “sophisticated, transnational crime” involving international and African syndicates who exploit local security gaps.

As a solution, Deigh and Gbadeyan proposed immediate deployment of advanced technologies including Internet of Things (IoT) sensors, drones, satellites, AI, and blockchain tracking systems across Nigeria’s oil infrastructure.

These tools, they argued, would not only curb theft but boost transparency, rebuild investor confidence, and recover vital funds for healthcare, education, and infrastructure.

“Technology alone will not fix this,” they warned. “Strong government will, strict enforcement of the PIA, and accountability are equally critical.”

They also called on oil companies to invest in long-term digital monitoring systems and urged host communities to view transparency as a pathway to shared prosperity rather than suspicion.

“Nigeria stands at the crossroads of opportunity and decline.

Oil theft and inefficiency are not inevitable — they are the consequences of inaction and neglect,” the experts concluded.

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Without urgent action, they warned, Nigeria risks remaining trapped in cycles of revenue loss, while bold digital reform could offer a path to growth, diversification, and national stability.