IMPACT OF METERING PRACTICES ON OIL THEFT AND REVENUE LOSS IN NIGERIA

Abstract

Oil metering inefficiencies in Nigeria contribute significantly to oil theft and revenue loss in the petroleum industry. This study investigated the adequacy and effectiveness of metering practices, their relationship with oil theft, and potential technological and policy interventions to improve accountability. A descriptive survey design was adopted, with 384 respondents drawn from oil sector personnel using stratified and simple random sampling techniques. Data were analyzed using frequencies, percentages, means, and standard deviations. Findings revealed that most respondents disagreed that current metering practices are adequate or effective, with deficiencies linked to increased oil theft and revenue loss. Respondents agreed that adopting modern metering technologies, strengthening institutional oversight, and implementing robust policy interventions could significantly improve petroleum accounting and reduce losses. The study concludes that comprehensive reforms combining technology, policy, and capacity building are crucial for enhancing accountability in Nigeria’s oil sector.