Nigeria’s oil workers’ union has urged President Bola Tinubu to deploy more troops, including military chiefs, to combat oil theft and boost output to help Africa’s largest economy tackle dollar shortages, an official said on Friday.
Large-scale oil theft from pipelines and wells has been cited as one of Tinubu’s biggest challenges in recent years, damaging government finances and limiting the country’s output and exports.
Nigeria, Africa’s top oil producer, relies on the commodity for more than two-thirds of its earnings and about 90% of foreign exchange income. It has struggled to raise output as theft and sabotage have compelled oil majors including Shell and Exxon Mobil to divest all their onshore assets.
Oil output reached 1.48 million barrels per day (bpd) in February, according to data from the Organization of the Petroleum Exporting Countries (OPEC). While oil production is gradually rebounding, it still falls short of a budget target of 1.78 million bpd.
“The simplest and fastest way to address this foreign exchange problem is to increase oil production,” said Festus Osifo, president of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
“We urge the government of President Tinubu to redeploy military commanders to the Niger Delta region to ensure that this menace of oil theft is halted, and we can generate more revenues in the end,” Osifo added.
‘’Though refined fuels from the newly operational Dangote Refinery have started flowing into the domestic market, prices could have been lower if the exchange rate were lower,’’ he remarked.
In the past week, troops combating oil theft apprehended 25 suspected oil thieves and recovered 565,200 litres of stolen crude, 22,500 litres of illegally refined diesel, and 8,000 litres of petrol.
Defence spokesperson Major-General Edward Buba stated on Thursday that troops uncovered 16 illegal oil refining sites and demolished six dugout pits, 33 boats, and 18 storage tanks.
