Oil theft decline boosts Nigeria’s crude production

Nigeria’s declining oil theft has coincided with stronger crude production, as improved pipeline surveillance and security measures help restore output and protect revenues, DARE OLAWIN reports

Oil losses to theft and sabotage have fallen sharply in recent years, while Nigeria’s crude production has recovered to the quota approved for the country by the Organisation of Petroleum Exporting Countries, according to industry data.

Data from the Nigerian Upstream Petroleum Regulatory Commission showed that Nigeria produced 1,677,777 barrels of crude oil and condensate per day in August 2026, while crude oil production alone stood at 1,500,190 barrels per day. The figure marked the fourth consecutive month in which Nigeria met its 1.5 million barrels-per-day OPEC quota.

Nigeria relies heavily on crude oil exports for foreign exchange earnings, making the protection of production infrastructure important to government revenue and the wider economy.

The Nigeria Extractive Industries Transparency Initiative has reported significant crude losses from theft and sabotage in previous years. NEITI maintains oil and gas audit records covering production validation and crude losses.

The decline in oil theft has been linked by industry stakeholders to increased use of technology and personnel in monitoring pipelines and other petroleum assets.

The Nigerian National Petroleum Company Limited engaged Tantita Security Services Nigeria Limited in August 2022 through a pipeline surveillance contract.

Tantita was founded by High Chief Government Ekpemupolo, popularly known as Tompolo, with the approach of using people familiar with the Niger Delta terrain, including fishermen, boat operators, and former militants.

The company’s personnel monitor export pipelines, trace illegal connections, identify crude theft points, and report suspected illegal refining activities to security agencies for enforcement.

Tantita employs about 136,000 people directly in pipeline-related work, with indirect employment extending to more than 300,000 others.

The company has also partnered with the Stakeholders Development Network and Ecosus Pro Nigeria Limited on the Tantita Sustainable Rice Farming Initiative, aimed at moving communities previously involved in illegal oil activities into large-scale rice farming.

Technology and surveillance

Tantita Security Services Nigeria Limited said it integrates technology into its security operations to provide real-time monitoring, threat detection and communication.

The company deploys surveillance systems to protect infrastructure from vandalism, theft and unauthorised access. Its systems include high-resolution cameras with night vision and thermal imaging, remote monitoring, motion sensors and artificial intelligence capabilities.

It also uses access-control systems, including fingerprint scanners, facial recognition, retina scanners and RFID smart cards, to restrict access to critical areas.

“Systems such as fingerprint scanners, facial recognition, and retina scanners ensure secure and efficient access management. RFID Smart Card Systems allow for restricted access to key areas and provide a record of entry logs for enhanced accountability,” it said.

The company said it also uses turnstile gates and automated barriers to control access points at high-security facilities.

“Early detection of potential threats is crucial for preventing damage and ensuring timely responses. Our integrated alarm systems are designed to detect and notify security teams of intrusions instantly. Our perimeter Intrusion Detection Systems (PIDS) detect breaches along fences or walls, issuing immediate alerts,” it said.

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Tantita added that its systems could notify security personnel through mobile devices and support communication among security teams.

“Our advanced radio systems ensure uninterrupted communication across facilities, even in remote locations. We design and equip control rooms with video walls and communication consoles, providing centralized oversight for large-scale operations. Emergency Notification Systems enable quick dissemination of alerts to relevant stakeholders during emergencies, minimising confusion and delays,” it stated.

Oil earnings

The PUNCH recently reported that crude oil remained Nigeria’s largest single export commodity in the second quarter of 2026, generating N12.91tn and accounting for 47.79 per cent of the country’s total exports, according to data from the National Bureau of Statistics.

The development came amid a sharp rise in global oil prices, with crude trading around $98 per barrel as the ongoing war between the United States and Iran heightened concerns about possible disruptions to key oil transit routes.

For Nigeria, the increase in international crude prices is already translating into higher export proceeds, reflected in the country’s second-quarter trade performance.

The N12.91tn generated from crude exports contributed to Nigeria’s sizeable merchandise trade surplus during the quarter, with total exports substantially exceeding imports.

The NBS data showed that Asia was Nigeria’s largest export market during the period, receiving goods worth N8.72tn, representing 32.29 per cent of total exports.

Europe followed with N8.07tn, or 29.87 per cent, while exports to Africa stood at N6.65tn, representing 24.62 per cent. Exports to the Americas were valued at N3.11tn, or 11.52 per cent, while Oceania accounted for N459.96bn, representing 1.70 per cent.

Within Africa, ECOWAS member states accounted for N3.75tn, representing 56.39 per cent of Nigeria’s exports to the continent. India was Nigeria’s largest individual export destination in the quarter, receiving goods valued at N3.29tn, equivalent to 12.17 per cent of total exports.

With Brent crude trading above $90 per barrel, significantly higher than Nigeria’s 2026 federal budget benchmark of $64.85, the rally could strengthen government revenues, foreign exchange reserves and exchange rate stability.

Analysts, however, have warned that a further escalation of the conflict could push crude prices well above $100 per barrel, particularly if the Strait of Hormuz, a major route for global oil shipments, is disrupted.

“Higher oil prices typically strengthen Nigeria’s current account balance, improve foreign exchange liquidity and export proceeds,” the Chief Executive Officer, Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, stated in a recent policy brief titled ‘Implications of the Iran–US–Israel Conflict on the Nigerian Economy’.

“This could reduce short-term pressure on the naira and reinforce investor confidence,” Yusuf, a renowned economist, further explained. A sustained increase in crude prices could therefore support stronger export earnings and improve Nigeria’s external balances.

Stakeholders back surveillance

Calls to restructure the pipeline surveillance contract have drawn opposition from some traditional rulers, host-community representatives and other stakeholders in the Niger Delta.

Former House of Representatives member Oghene Egoh said indigenous security companies involved in pipeline surveillance had improved security around oil infrastructure and helped increase production by curtailing pipeline vandalism, illegal bunkering and crude theft.

In March, Dr Blessing Agbomhere, a legal practitioner and security expert, described the pipeline surveillance framework coordinated by Tantita and other indigenous firms as a “strategic national instrument” with implications for Nigeria’s economic stability and security.