A review of crude oil theft incident reports provided by the Nigerian National Petroleum Company Limited (NNPCL) between May and the second week of October 2023, it’s alarming to discover that there have been 4,145 recorded crude oil theft incidents.
This staggering number highlights the severity of the issue at hand. In its weekly “Energy and You” series airing on the NTA News Network, the NNPCL noted in episode 7, that 3444 crude oil theft incidents were recorded between January and April 2023. Meanwhile, by Episode 8 of the weekly series, the NNPCL started sharing weekly reports of crude oil theft incidents.
A summation of crude oil theft incidents recorded between episode 8 (May 2023) and episode 30 (October 2023), it was revealed that a total of 4,145 crude oil theft incidents were recorded between May 2023 and the second week of October 2023. According to NNPCL records, some of the more active hotspots for crude oil theft in the Niger Delta, include; Ohaji-Egbema, Oguta (Imo), Ogbia, Imiringi (Bayelsa), Obodo-Omadino, Ughelli (Delta), Egorobiri Creek, Gokana, Iba community, Emuoha, Rumuji, Degema (Rivers).
Addressing this challenge requires an immediate and comprehensive response, involving all tiers of government and various security agencies across the nation. The scale and impact of these incidents demand a coordinated effort to combat this problem effectively and safeguard Nigeria’s valuable oil resources.
Crude oil theft is a menace that has been eating deep into the revenues of the country and has not let up regardless of all the efforts by the government to stop it, including employing ex-militants in multimillion naira pipeline security contracts to secure oil and gas assets in the Niger Delta region. To better understand the challenge presented by the current crude oil theft, note that Nigeria’s National Security Adviser, Nuhu Ribadu revealed in August 2023, that the country is losing 400,000 barrels of oil per day to crude oil thieves.
As per Ribadu’s statement, Nigeria has the potential to produce a daily output of 2 million barrels of crude oil. However, the current reality falls short of this potential, with production standing at below 1.6 million barrels. Note that in September 2023, Nigeria produced 1.5 million barrels per day, the figure is inclusive of condensates production. The significant gap between potential and actual production can be attributed to the detrimental impact of theft and pipeline vandalism, resulting in a daily loss of up to 400,000 barrels of valuable crude oil.
Nature of crude oil theft
The persistence of crude oil theft in Nigeria lays bare the deep-rooted issues of corruption and security vulnerabilities in the country. In a recent address to the Nigerian Senate, Senator Ned Nwoko shed light on the disheartening revelation that certain security officials, whose primary duty is to safeguard oil and gas assets, are actually complicit in this illicit trade. They are driven by the financial gains associated with illegal activities.
Furthermore, the communities where these unlawful operations occur are fully aware of those involved. Complex networks and structures have been established, and community members are, in one way or another, connected to these activities. Others observe the criminal operations but choose to remain silent. This silence is often a result of the dire poverty prevalent in the region, where people are struggling to make ends meet, and crude oil theft offers a path to financial relief.
It’s crucial to understand that the crude oil theft network encompasses a broad spectrum of individuals and groups. It involves foreign oil traders, shippers, bankers, refiners, high-ranking politicians, and even military officials. At the grassroots level of these networks are young Nigerians living in the creeks, engaging in risky and illegal work, often involving themselves in gang activities.
Moreover, they are continually recruiting more young individuals into this trade. For these young Nigerians, survival is the primary concern, given that their region has been ravaged by pollution, unemployment, and neglect. The vicious cycle of poverty and desperation drives them into the crude oil theft syndicate, which appears as a lifeline in their harsh environment, exposing the need for holistic solutions addressing the root causes of the problem, including economic and environmental revitalization.
Understanding the Reasons Behind Communities’ Silence on Crude Oil Theft
To grasp why people in crude oil theft hotspots often remain silent, an anonymous source from Rivers State provides insights into the prevalent dynamics. Typically, three broad scenarios unfold when the local population is confronted with knowledge of these illegal activities:
Poverty
The source emphasizes that the individuals engaged in crude oil theft are often influential figures who employ locals to set up structures and safeguard illicit assets. Some families residing in these areas directly benefit financially from these unlawful operations, which compels them to turn a blind eye to the situation.
To provide context on this, it’s essential to understand that many residents in the Niger Delta communities grapple with neglect by government representatives. The Niger Delta Development Commission (NDDC) has not delivered effective solutions to their real-life challenges. Consequently, these families face hunger, unemployment, and pollution, with little hope for a better future. Meanwhile, they witness the revenue from their oil and gas resources being channelled to develop other regions of the country.
In this context, the lure of funds from crude oil theft becomes a desperate means of survival, making them reluctant to report or oppose the illegal activities.
Fear of Unjust Arrest
Another group of residents chooses not to engage with law enforcement out of fear of being wrongly apprehended as suspects in these illegal activities.They worry that if they were to alert security agents about the illegal operations in their community, they might be targeted by security personnel who could consider them as potential wrongdoers. Hence, they opt to remain passive, waiting for law enforcement agencies to receive tips from alternative sources or stumble upon illicit activity sites independently.
Lack of Prosecution
The source further sheds light on a disconcerting trend where suspects involved in crude oil theft, once apprehended by security agents, are frequently released due to the influence of political figures. These releases occur regardless of the existence of substantial evidence for their prosecution.
Such a pattern of releasing suspects without proper legal proceedings sets off a ripple effect. It not only emboldens more individuals to engage in oil theft but also perpetuates illicit activities within the Niger Delta region. This pattern of impunity underscores the urgency of addressing the root causes of crude oil theft, including economic hardships and lack of opportunities, in order to effectively curb this pervasive issue.
Additionally, the source acknowledges that there are various other dimensions that contribute to the community’s reluctance to disrupt crude oil theft operations. In some cases, the local population remains unaware of these activities due to the clandestine nature of crude oil theft, which involves illicit tapping, refining, and transportation through vehicles or vessels.
More Insights
Crude oil theft in Nigeria operates on two distinct levels: the local scale and the broader, international scale. Each of these dimensions has its own characteristics, and the latter, in particular, has the potential to illegally tap into offshore oil assets. This complex issue involves a network of international players who collaborate with local security agents and influential groups within the country to pilfer oil from both onshore and offshore facilities and subsequently transport it out of Nigeria via vessels.
A significant revelation comes from Alexander Sewell, a researcher associated with the Stakeholder Democracy Network (SDN), who emphasized the transnational aspect of crude oil theft. According to Sewell, the networks involved in crude oil theft extend far beyond the borders of Nigeria. These networks comprise individuals from diverse backgrounds, including Togo, Ghana, Lebanon, and India, indicating the global reach and complexity of this illicit trade.
A noteworthy incident occurred in November 2022, underscoring the international dimension of crude oil theft. The Nigerian Navy successfully intercepted a foreign vessel and detained 27 foreign nationals. These individuals now face legal charges related to their illicit activities within Nigerian waters. Specifically, their actions involve attempting to export crude oil without the appropriate clearance.
The composition of this group is diverse, consisting of 16 Indian nationals and citizens from five other countries, such as Sri Lanka and Poland. The case serves as a stark reminder of the interconnected nature of crude oil theft, which transcends national boundaries and involves a web of actors from various countries.
Effectively combating this issue necessitates a multifaceted approach, including international cooperation and efforts to dismantle the intricate networks involved in crude oil theft, both at home and abroad.
Source: Nairametrics
