Nigeria lost N2.1 trillion to oil vandalism in 10 months – Baru

The Nigerian National Petroleum Corporation,
NNPC, said from January 2016 till date,
government lost $7bn, about N2.1tn, to the
activities of militancy groups and oil pipeline
vandals in the Niger Delta region.
The Group Managing Director of NNPC, Dr
Maikanti Baru, said this on Friday in Abuja at the
2016 Fiscal Liquidity Assessment Committee
Retreat.
Baru made a presentation on “Global Oil Prices,
Militancy and Terrorism and its Impact on
Government Revenue in Nigeria’’.
He said that apart from security challenges in the
region, politics, judiciary, oil prices and production
cost continued to impact negatively on the oil
industry.
“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 dollars per barrel,
the total 2016 revenue loss to the Federation
Account translates to about 7 billion dollars.