Market News

By Sami Tunji

Nigeria has achieved a significant breakthrough in curbing crude oil theft and losses, with figures from the Nigerian Upstream Petroleum Regulatory Commission showing a 50.2 per cent reduction in losses during the first seven months of 2025.

According to a statement issued on Thursday by the Head of Media and Strategic Communications at the NUPRC, Eniola Akinkuotu, the country lost 2.04 million barrels of crude between January and July 2025, averaging 9,600 barrels per day. This is the lowest level since 2009, when daily losses stood at 8,500 barrels.

By comparison, Nigeria lost 4.1 million barrels in the whole of 2024, averaging 11,300 barrels per day. The new figures also represent a dramatic improvement from 2021, when the country suffered its highest-ever losses of 37.6 million barrels at an average of 102,900 barrels per day. The latest results amount to a 94.57 per cent reduction compared with the 2021 peak.

The NUPRC attributed the gains to a mix of stronger regulatory oversight, security collaboration, and community engagement. “Between January and July 2025, crude oil losses were contained at 2.04 million barrels, averaging 9,600 barrels per day over the seven-month period. This marks a clear departure from the high-loss years that have long plagued the industry,” the statement read.

The commission explained that its metering audit initiative, designed to ensure accurate measurement of production and exports, has been central to eliminating discrepancies.

Furthermore, the implementation of the Petroleum Industry Act in 2021 has provided a stronger framework for industry regulation, contributing significantly to the downward trend. In 2021, Nigeria lost 37.6 million barrels at a daily average of 102,900. This fell to 20.9 million barrels in 2022 at 57,200 barrels per day. By 2023, the figure had dropped to 4.3 million barrels, averaging 11,900 barrels daily, and further reduced to 4.1 million barrels in 2024.

To consolidate progress, the NUPRC, under the leadership of Chief Executive Gbenga Komolafe, has approved 37 new crude oil evacuation routes to tackle theft.

The commission said it has adopted both kinetic and non-kinetic measures. On the kinetic side, NUPRC has deepened cooperation with security agencies, oil operators, and host communities to secure oil infrastructure. On the non-kinetic side, regulatory measures such as audits and system reviews have been implemented to close loopholes.

“The commission has adopted a balanced mix of kinetic and non-kinetic strategies in tackling oil losses. On the kinetic front, we continue to work with security agencies, operators, and communities. On the non-kinetic front, we have tightened regulations and introduced strategic initiatives like metering audits across upstream facilities,” the statement explained.

Industry players have acknowledged the progress. In June 2025, the Executive Coordinator of the Independent Petroleum Producers Group, Oyeleke Banmeke, confirmed that crude oil theft had dropped significantly compared with levels recorded two to three years ago.

Banmeke commended President Bola Tinubu’s administration for strengthening security in oil-producing areas, especially in the Niger Delta, which has historically been the hotspot for crude theft. Analysts say the reduction in losses is a positive signal for Nigeria’s oil sector, boosting investor confidence and improving government revenue at a time of pressing fiscal challenges.

With oil losses trending downward and new evacuation routes set to strengthen monitoring, Nigeria appears on track to sustain the momentum in protecting its most critical economic resource.