Nigeria lost N2.1 trillion to militants, vandals in 2016 - NNPC

A total of $7 billion (N2.1 trillion) is said to have been lost to the activities of

This revelation was made known by The Group Managing Director of NNPC, Maikanti Baru, on Friday, October 28, 2016.

At the 2016 Fiscal Liquidity Assessment Committee Retreat in Abuja, Baru said the Nigerian National Petroleum Corporation and Nigerian Government lost the sum to the activities of militancy groups and oil pipeline vandals.

Baru also said that apart from security challenges in the region, politics, judiciary, oil prices and production cost continued to impact negatively on the oil industry.

In his words: “Over 7000kpd of crude oil has been lost due to vandalism this year. A bulk of the loss is from JV assets. This implies that 60 per cent of oil production lost is NNPC-FGN equity.

“At an estimated price of $45 per barrel, the total 2016 revenue loss to the Federation Account translates to about $7 billion. This is money that the government could have used to achieve major infrastructural milestones.

“ This loss is equivalent to a new 7,000mw power plant; new 350kpd refinery; over 30 per cent of National budget; and a new 1,700 kilometre pipeline,’’ he said.

Proffering solution, Baru said the NNPC planned to increase security of oil and gas assets, improve its community social responsibility and the Amnesty programme.

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He also said the NNPC planned to renegotiate terms of Production Sharing Contract with deep offshore operating companies because with the current agreement, only 17.7 per cent of total revenue comes to government.