In a bid to combat the rampant crude oil theft in Nigeria, the Economic and Financial Crimes Commission (EFCC) has advocated for the creation of specialized courts dedicated to the prosecution of oil theft cases.
This call was made by Mr. Michael Uzokwe, Chief of Staff to the EFCC Chairman, Mr. Ola Olukoyede, during an investigative hearing in Abuja.
Specialized Courts as a Solution
Mr. Uzokwe highlighted the challenges faced in prosecuting oil theft cases through the regular court system, citing delays and inefficiencies that have hindered efforts to curb oil theft and related financial crimes.
He stressed the need for specialized courts to expedite the prosecution process and ensure swift justice.
“The delay in prosecution through regular courts is hampering prosecution and militating against the elimination of crude oil theft and other financial crimes,” Uzokwe stated.
“Establishing specialized courts to handle these cases will facilitate recoveries and serve as a deterrent to potential offenders.”
Scrutiny of Molecular Power System Detection
In a related development, the Chairman of the Special Committee on Crude Oil Theft, Rep. Alhassan Ado-Doguwa, announced the formation of a sub-committee to evaluate the effectiveness of the Molecular Power System (MPS) oil theft detection system.
The decision was prompted by the lack of recoveries from the multi-million-dollar contract, which includes a retainer-ship fee of $5 million.
“The setting up of the sub-investigative panel became necessary due to zero level of recovery recorded so far from the multi-million-dollar contract,” Ado-Doguwa explained.
“We need to assess the desirability or otherwise of continuing with this system.”
Questioning the MPS System’s Effectiveness
Rep. Sada Soli, who spoke on behalf of Ado-Doguwa, raised concerns about the continued use of the costly MPS detection system.
Soli pointed out that despite the significant investment, the system has not produced any meaningful results in curbing oil theft.
“The MPS detection system has not yielded any success since its deployment,” Soli remarked. “Some powerful lawyers, already enjoying the retainership largesse, are putting up stiff resistance to the system’s discontinuation, not wanting to lose the easy money coming their way.”
Attorney-General’s Controversial Instruction
Soli also questioned the directive from the Attorney-General that the retainership of Nigerian lawyers practicing in Nigeria be paid in dollars, suggesting that this move could be tied to the vested interests of those benefiting from the system.
The Alarming Cost of Oil Theft
A report released by the Nigeria Extractive Industries Transparency Initiative (NEITI) has brought to light the staggering financial losses Nigeria faces due to oil theft.
According to NEITI, Nigeria lost 619 barrels worth $46.16 billion (N16.25 trillion) to oil theft in 2022 alone. NEITI’s audit reports, covering twelve years, indicate that the country loses an average of more than 140,000 barrels of crude oil per day.
The Need for Urgent Action
With the mounting financial losses and the ineffective measures currently in place, the calls for specialized courts and a reevaluation of the MPS detection system underscore the urgent need for more effective strategies to combat oil theft in Nigeria.
