Bleeding Barrels

Oil theft has become a significant loophole in oil revenue in Nigeria. Over the years, Nigeria has lost millions of dollars to the activities of oil thieves through bunkering and illegal refineries, particularly in the Niger Delta region. Oil accounts for 90 per cent of Nigeria’s revenue. A newspaper report revealed that Nigeria has lost about $46 billion to crude oil theft in 11 years. The Nigerian National Petroleum Corporation (NNPC) revealed that stemming from vandalism, over 5,000 kilometres of oil pipelines are not working, and about ten million litres had been lost at a particular time from volume pumped from Aba to Enugu.

Monies channelled towards securing oil facilities have not yielded the desired results as the menace is growing in scale and frequency. In 2022, the Nigerian Federal government revealed it had paid ₦12.43 billion on pipeline protection and maintenance. Despite the award of a multi-billion naira pipeline surveillance contract to a former leader of the Movement for the Emancipation of Niger Delta, Government Ekpemupolo, popularly known as Tompolo, pipeline vandalism and oil theft persists. For instance, the Nigerian National Petroleum Company Limited (NNPCL) revealed that 149 incidents of crude oil theft were recorded across the Niger Delta in the span of a week. This brings to question the effectiveness of surveillance contracts.

A slew of laws have been enacted over the years to combat the wave of oil theft and pipeline tampering in Nigeria. The foremost is the Petroleum Production and Distribution (Anti-Sabotage) Act of 1975, followed by the Criminal Justice (Miscellaneous Provisions) Act 1975, which broadly provides stiffer penalties for damages to certain infrastructures, including oil pipelines. The next enactment is the Miscellaneous Offences Act of 1984, initially titled “Special Tribunal (Miscellaneous Offences) Act of 1984”. This Act created some miscellaneous offences. Like the Criminal Justice (Miscellaneous Provisions) Act, it imposes severe punishments for offences and specifies the court with jurisdiction over the perpetrators. Furthermore, Mele Kyari disclosed the willingness of the Federal government to set up special courts to expedite the trial of oil thieves and pipeline vandals in the Niger Delta.

Special tribunals will not eliminate the threat of oil theft. Although special tribunals will aid in administering swift justice to suspected oil thieves, their influence on preventing oil theft will be little. Reactionary initiatives like this may dissuade people from engaging in oil bunkering. It could also imply they will find ways to avoid justice or being captured. Hence, the push forces and permissive environment for oil pipeline vandalism remain. As a result, the government and key oil sector institutions should focus on preventing pipeline leaks. Including host communities in the securitisation mechanism is one way to go. Including members of host communities, especially youths will create a sense of community ownership of oil facilities. Security contracts should be awarded to organised host community groups. Their vast knowledge of the terrain and the sense of ownership it will cultivate will ensure that commensurate efforts of security agents deployed to those facilities are effectively utilised.

Government response to oil theft must go beyond community initiatives and address the region’s pervasive poverty. The government must foster an environment that supports small businesses to reduce mass poverty’s prevalence. This will assist in providing alternative means of subsistence for those whose earnings from fishing or agriculture have been negatively impacted by the disastrous oil exploration activities. Another way to deter illegal oil bunkering, pipeline vandalism, and militancy is through the jobs generated by communities’ involvement in securitisation. Nigeria’s losses from oil theft highlight the need for a comprehensive analysis and discussions on issues on oil exploration, the development of oil-producing communities, and the pardoning of former Niger Delta militants.