Nigerian businessman and Chairman of Heirs Holdings, Tony Elumelu, has said oil theft losses affecting his company’s production have fallen dramatically from 97 per cent before 2023 to about two per cent, describing the development as a major improvement in Nigeria’s oil sector.
Elumelu made the disclosure while highlighting developments in the country’s petroleum industry, saying his company now retains approximately 98 per cent of the crude oil it produces, compared with the significant losses recorded before 2023.
According to him, the company was previously losing as much as 97 per cent of its production to crude oil theft and related disruptions. The situation, he said, has changed considerably, with the company now producing more than 58,000 barrels of crude oil per day while recording minimal losses.
Elumelu cited June 2026 figures to illustrate the scale of the improvement, arguing that the decline in oil theft demonstrates that Nigeria’s long-running challenge of crude theft can be tackled when there is sustained collaboration between operators and security agencies.
The development comes against the backdrop of years of significant crude oil theft in the Niger Delta, which has reduced government revenues, affected oil production and discouraged investment in the sector.
Nigeria has historically struggled with illegal tapping of pipelines, crude theft and vandalism of oil infrastructure. The problem became particularly severe in previous years, with the country losing substantial volumes of crude before the oil reached export terminals.
However, broader industry data suggest that crude losses have declined significantly.
Figures from the Nigerian Upstream Petroleum Regulatory Commission showed that national crude oil losses averaged about 9,600 barrels per day during the early part of 2025, reportedly the lowest level recorded in about 16 years.
That represented a major reduction from the more than 100,000 barrels per day lost to theft and other related problems in 2021.
The improvement has been welcomed by stakeholders in the petroleum industry, who argue that reducing crude theft is essential to increasing production and improving government revenue.
The development has also been linked by supporters to the security measures and reforms implemented under the current administration.
Improved surveillance, greater cooperation between oil companies and security agencies, and efforts to protect pipelines and production facilities have all been identified as factors contributing to the reduction in losses.
For Elumelu, the experience of his company demonstrates what can be achieved when crude-producing assets are effectively protected.
The businessman has previously spoken publicly about the enormous impact of oil theft on Nigerian producers, arguing that companies cannot sustainably invest in production when significant volumes of crude are stolen before reaching the market.
Despite the reported progress, however, questions remain about whether the reduction in oil theft has translated into a significant increase in Nigeria’s overall crude production and improved living conditions for citizens.
Critics argue that lower crude losses are welcome but should ultimately result in stronger government revenues, improved public services and better economic conditions for Nigerians.
The country continues to face high living costs, inflationary pressures and widespread concerns over household purchasing power.
There are also questions about Nigeria’s overall production capacity, with observers noting that reducing losses does not automatically guarantee a substantial increase in total crude output.
Nevertheless, the reported decline represents an important development for an industry that has struggled with oil theft for decades.
If sustained, lower crude losses could provide oil producers with greater confidence to invest in production while increasing the volume of petroleum revenue available to the government.
The challenge for policymakers will now be to ensure that the gains are maintained, production capacity is expanded and the financial benefits of a more secure oil industry translate into tangible improvements in the Nigerian economy.
Elumelu’s figures therefore provide a positive assessment of progress in the fight against crude theft, while also raising a broader question: can Nigeria convert reduced oil losses into higher production, stronger public revenue and better living standards for ordinary Nigerians?
