Oil theft is one of the banes to Nigeria’s stability and development as a nation. Over time, oil theft has added to Nigeria’s economic woes. The oil and gas industry contributes approximately 65 per cent of the government revenue and accounts for over 85 per cent of the country’s exports, and oil theft significantly disrupts government revenue. The Nigerian National Petroleum Company Limited (NNPCL) estimated that between 2009 and 2018, the country lost around $41.9 billion to oil theft, and in 2023, Nigeria’s second legislative chamber, the House of Representatives, stated that Nigeria lost ₦2.3 trillion to the same issue. The House of Representatives also stated that between January and July 2024, the country lost an average of 437,000 barrels worth $10 billion due to oil theft activities—highlighting the situation’s gravity. It affects other aspects of the country, such as infrastructure, healthcare, and education funding. The environment is one aspect that is heavily impacted by oil theft.
Oil theft activities such as illegal refining of crude oil and pipeline vandalism contaminate the environment by releasing pollutants that disrupt agricultural enterprises such as crops and fish production. An excellent example of the adverse effect of oil theft on the country’s environment is the damage to food crops in the Niger Delta region. In the oil-rich Niger Delta 70 per cent of people live in the rural areas, and most rely on farming, fishing and non-timber forest product for their livelihood. Oil from spillages due to oil theft activities sinks into the ground during the dry season and destroys undergrowth. During the rainy season, oil is diluted but spreads over a wide area. This oil pollutant kills microbes, fungi (macro and micro), and other soil organisms responsible for soil improvement, making it nearly impossible to grow crops. The spillage from oil theft is detrimental to aquatic life. Oil spilt through oil theft activities endangers fish hatcheries in coastal areas. A study on the effects of illegal refineries on marine life in the Niger Delta found that oil theft activities contaminate commercially valuable fish flesh. Heavy metals released from oil theft activities accumulate and create a toxic environment for fish. This leads to a drastic decline in fish production. The drastic decline of fish production creates a socio-economic challenge for those who depend heavily on fish production. Environmental damage from oil theft activities deprives communities of their livelihood and removes their source of income.
People’s health is adversely affected by environmental pollution caused by oil theft activities. Human lives are exposed to severe health threats as the environment becomes polluted through oil spillage and gas pollutants. Health abnormalities associated with environmental consequences of oil theft activities are cardiovascular, gastrointestinal, neurological, respiratory, psychological, visual, haematological, and carcinogenic pathologies. A study on the respiratory effects of artisanal crude oil refining, a method of oil theft in Bayelsa state, found that 49.6 per cent of respondents experienced mild to moderate respiratory symptoms. Those who experienced more moderate and severe symptoms were residents of communities severely exposed to the pollutants from artisanal refining.
The Nigerian government has tried to curb oil theft and has taken many steps. The government also created the Nigerian Oil Spill Detection and Response Agency (NOSDRA) in 2006, which is under the Federal Ministry of Environment. The agency is tasked with monitoring and responding to oil spills in Nigeria. A study on oil spillage in Nigeria observed that in 2020 the agency’s efforts to decrease oil spillage were encouraging. The government has intensified ground, air, and maritime operations through the Nigerian military. Efforts from the military, such as surveillance and raids, have led to the destruction of illegal refineries and the discovery of infrastructure and equipment that are sustaining the siphoning of oil. The NNPCL, in 2022, awarded a multi-billion contract to Tantita Security Services in Niger Delta, owned by an ex-militant popularly known as Tompolo. This led to a surge in discoveries of sites and vessels belonging to oil thieves due to the company’s knowledge of the local environment. The Nigerian military has burned many of the crude oil vessels belonging to thieves. However, burning these crude oil vessels releases oil pollutants such as sulphur, nitrogen and other toxic substances into the environment, raising further environmental concerns.
Despite these efforts, oil theft activities persist. This is because of allegations of widespread corruption in the illegal business involving government officials and the military, among other security personnel and international oil companies. This complicity is often cited among the reasons why efforts at curbing the menace have not yielded sustained results. The Ijaw Youth Council in 2018 alleged that the Nigerian Navy and members of the Joint Task Force (JTC) are involved in the lucrative stealing of oil in the Niger Delta region. A 2019 report by Transparency International highlighted the military involvement in oil theft. Military officials provide cover to culprits and extract payment from illegal refinery workers. A former national security advisor, Bagana Monguno, stated that oil theft activities have grown in sophistication due to collaboration with unscrupulous international actors. International companies deliberately abandon well heads they deem dry and refuse to seal them, allowing vandals and corrupt officials unrestricted access to crude oil when pumping activities are ongoing. A report by the Nigerian Resource Charter stated that International Oil Companies use high-wired networks of onshore and offshore sellers, financiers, logistics, and security firms to steal crude oil due to its lucrativeness.
Institutionalising and enforcing transparency through a public accountability mechanism would be one way to curb oil theft and eliminate or significantly reduce corrupt behaviours among the key operators in the sector. This can be achieved through regular forensic auditing and periodic reporting to the National Assembly by the NNPCL and relevant government agencies with supervisory or regulatory roles over the sector. In 2023, the World Bank stated that NNPCL needs to be transparent as this will help ensure the accuracy of profits and oil revenues remitted to the government account. There is a need to strengthen the regulatory framework to ensure the accountability of government officials, military personnel, and IOCs. Any public official who compromised themselves must be severely sanctioned as a deterrent. Cooperation with international courts can be crucial in fighting oil theft. Foreign companies that steal oil can be duly prosecuted through the international courts. Technologies such as Artificial intelligence (AI) should be explored. For example, AI-powered drones and satellites will help detect anomalies or unauthorised oil pipeline activities. Collaboration with local and international technological companies will allow for customised solutions to combat oil theft activities. The fight against oil theft must minimise the negative impact on the environment. To achieve this goal, the government must establish a multistakeholder committee of experts to oversee the documentation and dismantling of illegal refineries and the disposal of illicit petroleum products in an environmentally friendly way.
