Africa
By Emmanuel Onwubiko
NIGERIA’S major source of foreign revenues are the crude oil resources and this makes this natural endowment a national treasure. This is why whatever happens in the crude oil sector of the economy shapes the national conversations. One phenomenon that has continued to attract massive attention is crude oil thefts.
Crude oil theft has been one of the greatest menaces plaguing Nigeria’s economy for decades, with significant consequences on the nation’s revenue, infrastructure, and international standing. However, recent strategic efforts led by the Nigerian National Petroleum Company Limited (NNPCL) in close collaboration with the Armed Forces of Nigeria and other security agencies have begun to yield results.
These collaborative actions are ushering in a new phase of hope in the fight against this persistent issue. By employing a more holistic approach to oil theft prevention and employing advanced technology, Nigeria has started reclaiming its crude oil production. Still, to ensure that these victories are sustainable, continued cooperation, innovation, and community involvement are key.
Nigeria is Africa’s largest oil producer, but its potential has been undermined for years due to rampant oil theft. According to estimates, the country loses approximately 400,000 barrels of oil daily to theft and vandalism. This translates to billions of dollars in lost revenue each year, severely affecting the national economy. The theft occurs primarily in the Niger Delta region, where pipelines are sabotaged, and illegal refineries are established.
Apart from the economic damage, crude oil theft has profound environmental consequences. The practice of breaking pipelines and illegal refining causes widespread pollution, contaminating water bodies and rendering agricultural land unusable. The resultant oil spills also pose health hazards to communities living in proximity to these illegal activities. This dual blow of economic loss and environmental degradation underscores the need for an aggressive, coordinated response.
Recognizing the gravity of the situation, President Bola Ahmed Tinubu directed a multi-agency approach, mobilizing the military, police, and NNPCL to intensify the war on oil theft. The leadership of the NNPCL Group Chief Executive Officer (GCEO) Mele Kyari, and the Chief of Defence Staff (CDS) General Christopher Musa together exemplify this renewed commitment. They have implemented a multifaceted strategy that intertwines military action, intelligence gathering, community engagement, and legislative support.
One of the cornerstones of this strategy is the Nigerian military’s involvement in safeguarding critical hydrocarbon infrastructure. General Musa has underscored the necessity of securing the Niger Delta, the epicenter of Nigeria’s oil production. Recent military operations have been instrumental in uncovering illegal oil connections and dismantling illicit refineries. Between August 18 and 23, 2024, the joint efforts of the military and NNPCL resulted in the discovery of 33 illegal connections and the destruction of 72 illegal refineries in key states such as Rivers, Delta, and Bayelsa. These operations send a clear signal to oil thieves and their accomplices: the government is resolute in its fight against this menace.
Moreover, the establishment of the Joint Task Force (JTF) under Operation Delta Safe has further intensified efforts to rid the Niger Delta of vandalism and theft. Security forces have arrested 42 suspected oil thieves and seized vessels used for transporting stolen crude oil during this period. These decisive actions not only disrupt the operations of oil thieves but also serve as a warning to others involved in these illegal activities.
In tandem with military efforts, the strategic engagement of various security agencies, including the Nigeria Police and the Department of State Services (DSS), has fortified the fight against oil theft. This comprehensive security collaboration has adopted a four-pronged strategy—detect, deter, respond, and recover—that has been vital in restoring a measure of Nigeria’s lost crude oil production. The Inspector General of Police, Kayode Egbetokun, has emphasized that the police’s involvement is crucial for ensuring that apprehended criminals face prosecution under the law.
Recognizing the need for stiffer penalties for oil thieves and pipeline vandals, the National Assembly is actively considering legislation aimed at increasing the consequences of such criminal activities. This legal backing is essential for the sustainability of the ongoing efforts to combat oil theft and should include harsher penalties for not only direct perpetrators but also for those who facilitate the trade, including buyers and middlemen who profit from stolen oil.
Technology also plays a pivotal role in addressing crude oil theft. The NNPCL has embraced advanced surveillance technologies such as drones and satellite imagery to monitor pipelines and detect illegal activities. These innovations have improved intelligence gathering and response times, enhancing the overall effectiveness of operations against oil theft. Collaborations with private security firms specializing in technology-driven solutions further bolster these efforts, ensuring that oil theft is tackled on both tactical and strategic fronts.
The integration of data analytics into the NNPCL’s operations has also revolutionized oil production tracking and anomaly detection in pipeline flows. As a result, Nigeria’s crude oil production rose to 1.3 million barrels per day as of July 2024, reflecting a notable recovery from previous months. However, the sustainability of these gains hinges on ongoing investments in technology and innovation.
Engaging local communities, particularly in the Niger Delta, is another crucial aspect of this holistic approach. For decades, oil-producing communities have felt marginalized, leading some to participate in oil theft as a means of economic survival. The government and NNPCL have recognized the importance of fostering trust with these local stakeholders to secure their support in protecting oil resources.
President Tinubu’s administration has committed to ensuring that host communities benefit more directly from oil production activities. The recently implemented Petroleum Industry Act (PIA) includes provisions for creating host community development trusts, which allocate a percentage of oil revenues to community projects. This legal framework is designed to ensure that locals reap the benefits of the resources extracted from their lands.
Mele Kyari has consistently emphasized the need for community involvement in pipeline protection. By collaborating with traditional leaders, local governments, and community groups in anti-oil theft operations, the government aims to cultivate a shared sense of responsibility among residents to safeguard their natural resources.
Despite these positive developments, the fight against crude oil theft cannot succeed without robust legal support. The National Assembly has pledged to enact laws that impose stiffer penalties for those involved in oil theft and vandalism. Such measures are vital for deterring criminals and ensuring that those who engage in illegal activities face appropriate consequences.
At the policy level, continued government support in the form of favorable regulations for oil production, environmental protection, and community engagement is crucial. The government must ensure that oil companies operating in the Niger Delta adhere to international best practices in environmental management, minimizing pollution, and safeguarding local communities’ livelihoods.
While the recent successes in curbing oil theft are encouraging, sustaining these gains will require vigilance, investment, and innovation. To ensure continued progress in the battle against crude oil theft in Nigeria, several key measures must be implemented.
First, the government must prioritize investments in technology. Surveillance and monitoring systems are vital for safeguarding pipelines and oil infrastructure. By integrating cutting-edge technologies such as artificial intelligence (AI), security agencies can enhance their ability to detect and prevent illegal activities in real-time. AI-powered systems can swiftly analyze data, flagging potential threats and enabling quicker responses. Continuous technological upgrades are essential to outpace the increasingly sophisticated oil theft operations threatening Nigeria’s oil infrastructure.
Second, strengthening the legal frameworks governing oil theft is imperative. The National Assembly should expedite the passage of laws imposing harsher penalties for all actors involved in oil theft, from direct participants to facilitators. A comprehensive legal system with severe consequences for all involved will serve as a deterrent, reinforcing the message that oil theft is a serious crime with significant repercussions.
Community involvement is also critical in mitigating oil theft. Host communities in the Niger Delta should be actively engaged in the decision-making processes regarding oil production and security. By promoting transparency in revenue sharing and prioritizing environmental protection, the government and oil companies can foster stronger relationships with local communities. Empowering these communities and ensuring they benefit from oil production will encourage them to take ownership of pipeline protection efforts.
While military presence plays a crucial role in deterring oil theft, it must be complemented by development initiatives that address the root causes of insecurity in the region. High levels of poverty, unemployment, and underdevelopment drive individuals toward illegal activities, including oil theft. By investing in education, job creation, and infrastructure development, the government can provide alternative livelihoods, reducing the economic incentives fueling oil theft. Sustaining a military presence while improving living conditions will create a more secure and stable environment in the long term.
Finally, the private sector, particularly oil companies, must adopt a proactive approach to securing their pipelines and facilities. While the government bears significant responsibility, oil companies need to invest in private security and collaborate closely with local communities. By funding development projects and offering employment opportunities, these companies can foster goodwill and reduce the likelihood of sabotage. A collaborative approach involving the government, private sector, and communities is essential for ensuring the continued security of Nigeria’s oil infrastructure and the long-term success of anti-oil theft initiatives.
In conclusion, Nigeria’s war on crude oil theft has entered a promising phase, thanks to the coordinated efforts of NNPCL, the military, and various security agencies. While significant progress has been made, ensuring long-term success requires sustained efforts, technological innovation, legislative support, and, most importantly, the continued involvement of local communities. By addressing the multifaceted nature of oil theft, Nigeria can fully realize the potential of its oil sector and safeguard its economic future.
25th October, 2024.
C.E.
Tags: Nigerian National Petroleum Company Limited
