Nigeria's Buhari worried over large scale crude oil theft



By Felix Onuah

ABUJA, Aug 19 (Reuters) - Nigeria's President Muhammadu Buhari expressed concern on Friday over large-scale crude oil theft, saying it was affecting the country's revenues "enormously".

Nigeria lost $1 billion in revenue during the first quarter of this year due to crude theft, the oil regulator has said.

Nigeria is unable to meet some of its financial obligations to its citizens due to the oil theft, Buhari told government workers who are requesting a pay increase to help deal with double-digit inflation.

"On your request for a salary review, I wish to urge you to appreciate the revenue constraints being presently faced by government which is caused mainly by the activities of unscrupulous citizens through the theft of our crude oil, a major contributor to our revenue base," Buhari said.

Crude theft poses an existential threat to Nigeria's oil industry, the local head of Shell SHEL.L has said, resulting in the shutdown of two of its major pipelines.

Nigeria is currently battling to stabilise its ailing currency NGN= , to curb surging inflation and boost growth after the economic disruption caused by the COVID-19 pandemic.

Annual inflation NGCPIY=ECI in Nigeria hit a 17-year high in July, data showed on Monday.

Buhari also blamed the war in Ukraine for the rise in global food prices and high transportation costs for goods and services.

He instructed security agencies to speedily clamp down on those involved in oil theft in the Niger Delta, adding that Nigeria was also strengthening cooperation with its neighbours to stop criminals syphoning away stolen crude by sea.

"We will not allow a few criminals to have unfettered access to the nation's oil supply," Buhari said.
Reporting by Felix Onuah Editing by Gareth Jones Writing by Chijioke Ohuocha; Editing by Susan Fenton and Gareth Jones

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.