The Chairman, Senate Committee on Ecology and Environment, Dr. Bukola Saraki, has said that the rate of crude oil theft and vandalism in the country can threaten the nation's economy and the implementation of budgets of the federal, state and local governments.

The Chairman, Nigerian Extractive Industries Transparent Initiative, Mr. Ledum Mitee, had  said  that Nigeria lost over $11bn to crude oil theft and pipeline vandalism between 2009 and 2011.

Mitee, disclosed this at the public presentation of NEITI Audit reports for the Oil and Gas sector for 2009 to 2011, and the Solid Minerals Sector Audit for 2007-2010.

Saraki, in an interview with journalists in Ilorin on Sunday, said the whopping amount of money the nation was losing was capable of negatively affecting the oil and gas industry and the entire economy.

He stated that it was imperative for Nigeria to diversify its economy to avoid a mono economy or being dependent on oil revenue for its financial obligations.

He added that there was the need to muster enough political will to confront oil thefts, adding that it had become urgent, giving the colossal loss and its negative impact on the economy.

"Definitely, the huge amount of money being lost to oil theft could make the economy not sustainable. It is not acceptable and it is a danger to the entire economy.  If you look at the figures they are talking about, which is close to 20 per cent of the total production, then it is something that calls for alarm. The level of oil theft is not sustainable and definitely it is an inherent danger to our economy and to all our budget implementation

"The major issue on the oil theft is that we need to diversify our economy.

‘One of the key issues is that we cannot continue to be a mono product economy. There is need for us to look at other resources of revenue.  Be that as it may, I believe also that we need to have the political will to confront head on some of these abuses and some of these sabotages and thefts that are going on.  I believe that the agencies should do the job required of them," he said.

Saraki, who is a former governor of Kwara State said there was the need to look at the laws and ascertain whether the laws needed review or whether there should be more sanctions for oil thieves.

He however said that government was making efforts to address the malaise in the oil and gas sector.

"A lot has been done at that level in the last one month.  Government at different levels and the Economic Council have set up some committees to look at the oil theft.

"The Federal Government is also addressing the interaction with oil companies.  Let us see how the impact that will make over the couple of weeks to see where we are. If there is still lawmaking, then we need to come out with stricter or more stringent approach to the process," Saraki said.

He also attributed the major cause of illegal mining to poverty, adding that even though the perpetrators were aware of the inherent dangers posed, they preferred to risk their lives instead of starving.

He said there should be guidelines, laws and procedures to ensure safer mining to address the consequential dangers and fire disasters that might arise as a result of illegal mining.

Saraki said, "The major cause of illegal mining has to do largely with the issue of poverty.  It is not that those who are carrying illegal mining or carrying out rudimentary processes do not know that the mining they are doing is dangerous and there are better ways of mining;  but because of the level of abject poverty they face, you find where mothers who are aware of the risk but they will tell you ‘look they will die of hunger anyway, so they better take their chances.'"

He added, "We need guidelines, laws and procedures that ensure a safer mining so that there will not be fire fighting.

"We should ensure that we have rules and guidelines that would dictate how people go about mining and we have also procedures and guidelines to help in ensuring that the mining is safer. I think these are the things we need to do on the long time.

"These are some of the things that we are looking at to see that the Ministry of Mines and Power and Solid Minerals can begin to address , so that there will be very clear guidelines on how mining should take place.

"Also the Ministry of Health should carry out its oversight functions to ensure that those conditions are safe for our people," Saraki said.