Perhaps, in response to the outcry of Nigerians, President Bola Ahmed Tinubu recently directed the Chief of Defence Staff (CDS), General Christopher Musa, to deal decisively with the menace of crude oil theft and pipeline vandalism in the Niger Delta region.
Media reports claim that the directive became necessary because the nation’s losses from oil theft and pipeline vandalism had become embarrassing and drained the resources needed to build the economy. The situation has caused the government revenue losses of billions of dollars annually. Nigerians demanded and still demand that the authorities deal with the powerful cartel believed to be behind the crime.
Notably, over the years, oil theft has continued to generate concerns because it persisted even with the deployment of security personnel drawn from the military and paramilitary organisations. The Niger Delta region, which accounts for the majority of Nigeria’s oil production installations, has been the epicentre of oil theft.
Powerful criminal gangs, who have become experts in the business, steal crude oil from pipelines and sell them on the black market
Oil theft is perceived as a collective enterprise involving many individuals and groups. It is often accomplished through joint efforts and cooperation among influential businessmen, politically exposed individuals, unscrupulous security forces, militia organisations, the local population, oil company employees and their foreign collaborators. Part of the crude stolen is also refined into petroleum products and sold at exorbitant prices. This illegal activity has become a significant source of income for those who engage in it.
To say that oil theft is compounding the economic woes besetting the country and exacerbating corruption will be stating the obvious. Each group in the criminal chain maintains a specific role in the trade, using hot-tapping and cold-tapping to perform oil bunkering and steal thousands of barrels of oil per day from installed pipelines.
These unpatriotic elements transport stolen crude oil products to the shipping terminals for export. Efforts to stem the tide led to stiff resistance and violence in the Niger Delta in the past. The consequences of oil theft are numerous and far-reaching as it denies the nation the much-needed revenue that could have been used to improve the country’s infrastructure, education, and healthcare systems.
Unfortunately, illicit trade adversely affects the nation, making it challenging to meet its international quota and its attendant adverse ripple effects of poor revenue yield and constriction of foreign exchange capabilities. Not to mention, the impact on the value of the nation’s currency makes it difficult for the government to fund its budget. In addition, the environmental impact of oil theft is devastating. The continuous oil spillage, a fallout from the trade, is destroying the environment, including farmlands and aquatic life.
The President issued this directive to the military in light of these challenges. This is not the first time, though. Former President Muhammadu Buhari issued several such orders. Yet, not much was achieved, fueling the allegation that the security operatives have become part of the problem and are benefiting from very lucrative criminal activity.
Still, we insist that the presidential directive must be implemented with renewed vigour because of its inherent benefits: increasing oil production and enabling the country to meet its OPEC quota. The military has been tasked with securing oil pipelines and arresting individuals involved in oil theft.
However, to succeed in this national task, the Chief of Defence Staff needs the coordination and cooperation of all Armed Forces and paramilitary agencies, as the country’s survival is at stake. We cannot achieve economic stability without restoring oil and gas production and stopping oil theft. The host communities must also trust and support the security agencies.
Available information indicates that Nigeria recently recorded a 50 per cent increase in oil production. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) claimed that production has risen to 1.5 million barrels per day (bpd). The figure raises the hope that the war against oil theft may succeed and must be sustained.
Part of the fight to entirely end the theft, in our opinion, will necessarily include working collaboratively and constructively with the Niger Delta community and dealing with extreme prejudice against foreign thieves who take undue advantage of the corruption in the system. This requires the cooperation of oil-producing countries, multinational oil companies, and other stakeholders in the oil industry. Nigeria should explore an earlier proposal to the international community to treat crude from such sources as rogue oil as was done to diamonds in the days of the war in Sierra Leone. The government must also provide alternative means of livelihood for the youths in the Niger Delta region to discourage them from being agents of criminals.
Oil theft in Nigeria is a significant problem that needs to be addressed urgently. The government must take decisive steps to end the menace and protect the nation’s economy. The international community ought to be persuaded to support Nigeria in this fight to ensure that the country’s oil resources are protected and used for the benefit of its citizens.
