Tony Elumelu Explains The Reasons Behind IOC Withdrawals From Nigeria

Tony Elumelu Explains The Reasons Behind IOC Withdrawals From Nigeria

Nigerian entrepreneur and Chairman of Heir Holdings, Tony Elumelu, has identified oil theft as a major reason why International Oil Companies (IOCs) are pulling their investments from Nigeria and relocating to other regions. In an interview with the Financial Times, Elumelu stressed the need for the Nigerian government and security agencies to take more decisive action in identifying and holding accountable those responsible for the extensive theft of the country’s crude oil……. CONTINUE READING 

Elumelu’s comments align with his previous 2022 statements, where he underscored Nigeria’s significant losses due to oil theft through a series of tweets. He pointed to the Bonny Terminal as a case in point, which was meant to process over 200,000 barrels of crude oil daily but was only receiving fewer than 3,000 barrels, leading Shell to declare force majeure.

Elumelu argued that Nigeria’s inability to meet its OPEC production quota was not due to insufficient investment but rather the rampant theft of oil. He revealed that in his own operations, approximately 18 percent of the 42,000 barrels of crude oil extracted daily are lost to theft.

When questioned about the perpetrators, Elumelu commented, “This is oil theft; we’re not talking about stealing a bottle of Coke you can put in your pocket. The government should know who’s behind it; they should inform us.” He expressed frustration over the lack of identification of those responsible and questioned the effectiveness of the country’s security measures.

Elumelu also recounted his attempts to acquire an oilfield, which he claimed were thwarted by former President Muhammadu Buhari’s administration. According to Elumelu, Heirs Holdings had sought to purchase the oilfield since 2017 and had raised $2.5 billion for a different acquisition, but the deal was blocked by Buhari and his late Chief of Staff, Abba Kyari.

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