Why IOCs Are Withdrawing Investments In Nigeria — Tony Elumelu

Nigerian entrepreneur and the Chairman of Heir Holdings, Tony Elumelu, has pointed to oil theft as a significant factor driving International Oil Companies (IOCs) to withdraw their investments from Nigeria and shift to other regions.

In an interview with the Financial Times, Elumelu emphasized that the Nigerian government and security agencies should be more proactive in identifying and holding accountable those responsible for the massive theft of the country’s crude oil.

Elumelu’s recent comments echo his 2022 outcry, where he highlighted Nigeria’s severe losses due to oil theft through a series of tweets.

He cited the example of the Bonny Terminal, which was supposed to receive over 200,000 barrels of crude oil daily but was getting less than 3,000 barrels due to theft, leading operator Shell to declare force majeure.

Elumelu argued that the country’s failure to meet its OPEC production quota was not due to a lack of investment but because of rampant oil theft.

Speaking to the Financial Times, Elumelu revealed that even in his operations, about 18 percent of the 42,000 barrels of crude pumped daily from his field are lost to theft.

When asked who is behind the theft, he remarked, “This is oil theft; we’re not talking about stealing a bottle of Coke you can put in your pocket. The government should know; they should tell us.”

He expressed frustration that such large-scale theft could occur without the authorities identifying the culprits, questioning the effectiveness of the country’s security measures.

Elumelu also recounted how former President Muhammadu Buhari’s administration allegedly blocked his attempt to acquire an oilfield.

He claimed that Heirs Holdings had been trying to purchase the oilfield since 2017, having raised $2.5 billion for a different acquisition, but the deal was obstructed by Buhari and his late Chief of Staff, Abba Kyari.