Oil for Peace

Nigeria is losing funds in the time of an economically-impacting global pandemic, recession and escalating security challenges. Oil theft and pipeline vandalism remain a constant threat to Nigeria’s oil revenue. The Nigerian National Petroleum Corporation(NNPC) announced that it lost ₦159 billion to oil theft and pipeline vandalisation in 2019. In 2018, the losses were put at $2.8 billion to oil and maritime crimes. Activities of oil thieves and merchants of illegal oil refineries continue to squeeze Nigeria’s revenue pocket. More of the nation’s resources are also used to protect or repair these oil facilities.

Improved state security provision may guarantee some sort of safety for oil facilities, that alone cannot solve the perennial oil theft issues. While some oil theft and pipeline vandalism may be caused by greed and desire to access quick wealth illegitimately, others may be borne out of grievance, especially by residents of communities where oil facilities are situated. This is why it is crucial to include host communities in pipeline protection.  It is argued that awarding security contracts to host communities can be one of the remedial ways of curbing oil and gas vandalism as it will create a sense of ownership among community members. And more importantly, it will create jobs for members of the oil-bearing or impacted communities. The decades of perceived neglect in oil-producing communities has strained the mutual relationship that should exist between them, government and oil companies. Valid complains are that the idea of corporate social responsibility has not quite taken shape. Involving local groups in securitisation of oil facilities will be an avenue to give back to society and create job opportunities.

At this point of severe economic impasse, the government must be geared towards seeking solutions that are sustainable and pocket-friendly. The overarching impact of the economic recession, loss of jobs to the pandemic and government’s ever constraint in distributing public goods will potentially trigger an increased desire to perpetuate oil theft through attacks on oil facilities. The Nigerian government and oil companies through civil society groups should seek host communities’ partnerships in securing oil facilities. Of course, this should be preceded by ensuring global best practices in oil exploration activities as some vandalisms are to express grievances on the consequences of oil exploration. Regardless, a synergy between host communities, the government and oil companies is essential to ensure that while oil exploration continues in line with stipulated standards, communities are duly compensated through sustainable development projects that will improve their existence. Oil exploration in Nigeria may be Nigeria’s go-to source for funds, but it has also been a cause for violent conflict. However, relevant state and community actors can turn things around for peace.