{"id":71914,"date":"2020-02-24T12:35:46","date_gmt":"2020-02-24T11:35:46","guid":{"rendered":"http:\/\/pointblanknews.com\/pbn\/?p=71914"},"modified":"2020-02-24T12:35:46","modified_gmt":"2020-02-24T11:35:46","slug":"oil-theft-and-the-underdevelopment-of-the-nigerian-state","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/oil-theft-and-the-underdevelopment-of-the-nigerian-state\/","title":{"rendered":"OIL THEFT AND THE UNDERDEVELOPMENT OF THE NIGERIAN STATE"},"content":{"rendered":"<div id=\"m#msg-f:1659414497219553300\" class=\"mail-message expanded\">\n<div class=\"mail-message-header spacer\"><\/div>\n<div class=\"mail-message-content collapsible zoom-normal mail-show-images \">\n<div class=\"clear\">\n<p>BY JIDE AYOBOLU<\/p>\n<p>The Nigerian National Petroleum Corporation (NNPC) recently said the<br \/>\nnation lost about $750 million to oil theft in 2019. The amount is about<br \/>\nN230 billion at the official CBN exchange rate of N306 to $1. NNPC\u2019s<br \/>\nGroup Managing Director, Mallam Mele Kyari, gave the figure in a<br \/>\npresentation to members of the Executive Intelligence Management Course<br \/>\n13 of the National Institute for Security Studies (NISS) who visited the<br \/>\nNNPC Towers, Abuja, on a study tour. A statement by Samson Makoji,<br \/>\nacting spokesman of the NNPC, said the GMD decried the growing<br \/>\nactivities of oil thieves and pirates which he described as a threat to<br \/>\nthe operations of the corporation. Kyari stated that any threat to the<br \/>\ncorporation\u2019s operations was a direct threat to the very survival of<br \/>\nNigeria as a nation because of the strategic role of the corporation as<br \/>\nan enabler of the economy.<\/p>\n<p>He listed other security challenges facing the corporation to include<br \/>\nvandalism of oil and gas infrastructure and kidnapping of personnel,<br \/>\nadding that there was a deep connection between the various shades of<br \/>\ninsecurity challenges as they are all linked to what was happening in<br \/>\nthe Gulf of Guinea and the entire maritime environment. He called for a<br \/>\nconcerted effort and synergy to secure oil and gas operations for the<br \/>\neconomic survival of the country. In his presentation, NNPC Chief<br \/>\nOperating Officer, Downstream, Engr. Yemi Adetunji, said in 2016, the<br \/>\nGulf of Guinea accounted for more than half of the global kidnappings<br \/>\nfor ransom, with 34 seafarers kidnapped out of 62 cases worldwide. He<br \/>\nsaid the corporation was working closely with security agencies to<br \/>\ntackle the security challenges, and cited the \u201cOperation Kurombe\u201d<br \/>\nthat was recently conducted by the Nigerian Navy at the Atlas Cove as an<br \/>\nexample of such collaborative efforts.<\/p>\n<p>It would be recalled that Edo State Governor Godwin Obaseki has said<br \/>\nthat in the first six months of 2019, the nation lost about 22 million<br \/>\nbarrels of its crude oil production to oil theft. He said if nothing was<br \/>\ndone to curtail the ugly trend, the figure could double by the end of<br \/>\nthe year. Obaseki, who is the Chairman of the Ad-hoc Committee of the<br \/>\nNational Economic Council on Crude Oil Theft, Prevention and Control,<br \/>\nmade the call at a meeting of stakeholders which held at the NNPC<br \/>\nTowers. He said the twin menace of oil theft and pipeline vandalism were<br \/>\nbeginning to pose a threat to the national economy. The governor called<br \/>\non stakeholders to join forces and work towards eradicating the menace<br \/>\nof crude oil theft that is currently on the upward swing in the country.<\/p>\n<p>The corporation was excited that the menace of oil theft and its<br \/>\ntwin-evil of pipeline vandalism are receiving attention at the highest<br \/>\nlevel of governance in the country. The meeting had in attendance the<br \/>\nGroup Managing Director of NNPC, Mallam Mele Kyari, and representatives<br \/>\nof the governors of Delta, Bayelsa, Ondo, Cross River, Akwa Ibom and the<br \/>\nRivers States. Also in attendance were representatives of the Police,<br \/>\nNavy, Army, Civil Defense and the International Oil Companies (IOCs) and<br \/>\nsome indigenous operators. It would be recalled that in its June 2019<br \/>\nNNPC Monthly Financial and Operations Report (MFOR) released recently,<br \/>\nthe corporation announced a staggering 77 per cent rise in the cases of<br \/>\noil pipeline vandalism across its network of pipeline infrastructure.<br \/>\nAccording to the report, 106 pipeline points were breached, representing<br \/>\nan alarming increase from the 60 points vandalized in May 2019.<\/p>\n<p>Furthermore, The Nigerian National Petroleum Corporation said it had<br \/>\nsuffered severe attacks on its facilities and assets, noting that<br \/>\nbetween 2001 to half-year 2019, it had recorded a total of 45,347 breaks<br \/>\non its downstream pipeline networks across the country. Speaking in<br \/>\nAbuja at the inaugural Nigeria Extractive Industries Transparency<br \/>\nInitiative Policy Dialogue, NNPC Group Managing Director Mele Kyari said<br \/>\noil theft had remained a challenge in the industry despite some strong<br \/>\ninterventions in the past. NNPC, he said, had laid out steps to mitigate<br \/>\nthe ragging twin menace of pipeline vandalism and crude oil theft in the<br \/>\nnation\u2019s Oil and Gas Industry. A statement by NNPC spokesman Samson<br \/>\nMakoji said the GMD, who was represented at the event by the NNPC Chief<br \/>\nOperating Officer, Upstream, Roland Ewubare, listed other measures to<br \/>\ncurb the menace to include a security architecture with single<br \/>\naccountability for national critical infrastructure; industry and<br \/>\nregulatory commitment to transparent crude oil and products accounting;<br \/>\nrealistic expectation by host communities; and emplacement of<br \/>\nsustainable social investment mechanism.<\/p>\n<p>Oil bunkering or theft is a very serious act of economic sabotage and<br \/>\ncrime, which has very deep roots and long history in Nigeria. Bunkering<br \/>\nhas gradually but steadily undermined various efforts to reorganize the<br \/>\nnational economy and put Nigeria\u2019s political economy on a sound<br \/>\nfooting. The truth about this unfortunate sorry pass is that local<br \/>\neconomic criminals have teamed up international collaborators to<br \/>\nconstantly steal Nigeria\u2019s oil, thereby making ungodly gains. Hence,<br \/>\nwhat should have otherwise been used to develop the commonwealth of the<br \/>\nNigerian state, has been cornered and diverted into private pockets of<br \/>\ngreedy, highly connected; very influential, extremely dangerous and<br \/>\nwealthy individuals.<\/p>\n<p>Nigeria and Nigerians have suffered immeasurably in the hands of these<br \/>\ncrooked economic saboteurs and they not see anything wrong with their<br \/>\nendeavour, for them, it is just a means of livelihood, regardless of the<br \/>\nfact that it is illegitimate; it is immoral, it is scandalous but in<br \/>\ntheir thinking, it is a survivalist strategy, in which only the fittest<br \/>\nof the fittest survives, and all is fair in their business practices, as<br \/>\nthey continue to exploit the loopholes in the country\u2019s security<br \/>\narchitecture as well as leakages in the oil and gas industry. The<br \/>\nconspirators have devised several unorthodox means of getting cheap and<br \/>\nunearned monies at an immense loss to the country. All efforts to put<br \/>\nthese devious practices in check over the years have proved abortive;<br \/>\nthe cartels involved are very sophisticated and ruthless; they spare no<br \/>\nefforts to achieve their dastardly and sinister objectives.\u00a0 It is<br \/>\nimperative to underscore the fact that, hot-tapping and cold-tapping are<br \/>\nextremely sophisticated methods of oil theft and are primarily used in<br \/>\nlarge-scale operations during the crude oil stage. Terminal and vehicle<br \/>\ntransportation theft involve the re-appropriation of both crude and<br \/>\nrefined oil products from storage facilities during the process of<br \/>\nexport transportation.<\/p>\n<p>The Niger Delta is one of the world&#8217;s most important wetland and coastal<br \/>\nmarine ecosystems and is home to some 30 million people. Due to its rich<br \/>\nnatural resource base, environmental exploitation is rife and pollution<br \/>\naffects the people in unprecedented ways. Oil has been extracted in the<br \/>\nNiger Delta by the national and multinational oil companies since 1958.<br \/>\nOil pollution caused by oil spills and gas flaring by the oil industry<br \/>\ndevastates farmland, rivers, villages and the air. Oil pollution kills<br \/>\nfish and their food sources; it damages agricultural land causing soil<br \/>\ninfertility and negatively impacts agricultural productivity. The<br \/>\ngovernment fails to formulate and effectuate proper environmental and<br \/>\ncompensation regulations. The failure of the oil companies, including<br \/>\nShell, Eni, Chevron, Total and ExxonMobil, to swiftly deal with oil<br \/>\nspills exacerbates these problems as do spills resulting from oil<br \/>\nbunkering.<\/p>\n<p>As a direct consequence of the pollution, the people of the Niger Delta<br \/>\nare facing impoverishment, loss of livelihoods through poisoned land and<br \/>\nfishing waters, high rates of respiratory disease and illness,<br \/>\ndisenfranchisement and despair. Proper governmental policies to reinvest<br \/>\nstate income from oil in the Niger Delta for social and economic<br \/>\ndevelopment are desultory. The disastrous situation in many parts of the<br \/>\nNiger Delta violates people&#8217;s rights to health and a healthy<br \/>\nenvironment, the right to an adequate standard of living and the right<br \/>\nto earn a living through work. After many years of oil and gas<br \/>\noperations in the delta, most of the 30 million people living there<br \/>\nremain poor. The rapidly growing population is putting pressure on<br \/>\ntraditional livelihoods like fishing and agriculture.\u00a0 Only a very few<br \/>\nhave access to basic services and infrastructures like schools, health<br \/>\nclinics, electricity and running water. And, nothing has changed.<\/p>\n<p>Oil bunkering is very big business for local cabals and their<br \/>\ninternational conspirators. It has been alleged that those involved are<br \/>\nvery highly placed and strategically located in high places in and out<br \/>\nof government, and they fund politics and elections in the country.<br \/>\nHence, they belong to the exclusive class of the untouchables, because<br \/>\nif the government brings them to book it would amount to class suicide.<br \/>\nThe government needs to deal decisively with culprits no matter how<br \/>\nhighly placed or connected. There cannot be two sets of laws in the<br \/>\ncountry, one for the rich and the other for the poor, because equality<br \/>\nbefore the law is a cardinal principle of the rule of law and democratic<br \/>\nethos. This government has said it has zero-tolerance for corruption;<br \/>\nthis is one area that it should really show a zeal for fighting<br \/>\ncorruption. The President who is also the Commander- in &#8211; Chief of the<br \/>\narmed forces should read out the riot act to the security agencies and<br \/>\ngive them a free hand to operate. It is however, gratifying to note<br \/>\nthat, President Buhari has vowed to fight graft head-on and that; there<br \/>\nwill be no sacred cows.<\/p>\n<p>Nigeria that used to be the 6th largest oil-producing country in the<br \/>\nworld and a key member of OPEC is now placed around 12th with most of<br \/>\nthe oil used locally in the country externally sourced. It would be<br \/>\nrecalled that only recently the Federal Government said, it would fight<br \/>\noil theft with $1 billion by putting in place a comprehensive programme<br \/>\nto check crude oil and gas infrastructure, including the arrest and<br \/>\nprosecution of crude oil thieves. According to the Federal Government,<br \/>\n&#8220;oil theft is an aspect of global terrorism, which has become a big<br \/>\nindustry on its own. It has become a major threat to the Nigerian<br \/>\neconomy and we need to work with all stakeholders to curb. The thieves<br \/>\nmust be traced, apprehended and prosecuted&#8221;.<\/p>\n<p>President Muhammadu Buhari&#8217;s administration\u2019s attempt to reduce<br \/>\ncorruption within the government through the targeting of suspected<br \/>\nfacilitators of oil theft led to an increase in violence within the<br \/>\ncountry. For example, the creation of the Niger Delta Avengers militant<br \/>\norganization occurred after President Buhari prosecuted the leader of a<br \/>\nlocal militia group, Government Ekpemupolo, for his role in the practice<br \/>\nof oil theft in the Niger Delta region. Consequently, Ekpemupolo and the<br \/>\nNiger Delta Avengers have proceeded to sabotage multinational oil<br \/>\ncorporation pipelines. In addition to the violence associated with the<br \/>\nNiger Delta Avengers, oil spilt from these sabotage operations and the<br \/>\nillegal refinery practices committed by the local population have led to<br \/>\nthe severe pollution of the environment. Given that almost 83 per cent<br \/>\nof total exports revenue comes from the petroleum products revenue in<br \/>\nNigeria, the political and military elite have sought ways to<br \/>\nconsolidate their control of the oil trade. This monopoly over the oil<br \/>\ntrade has prompted many local villagers to commit small-scale oil theft<br \/>\nand to pursue the illegal refinery of stolen crude oil as a means of<br \/>\nentering into this unofficial economy.<\/p>\n<p>However, President Buhari is fully aware of the nefarious activities of<br \/>\noil thefts as well as its deleterious multiplier effects on the national<br \/>\neconomy, to this end, several palliatives were put in place, not only to<br \/>\nput paid to oil bunkering but also develop the whole of the Niger Delta<br \/>\nregion.<\/p>\n<\/div>\n<\/div>\n<div class=\"mail-message-footer spacer collapsible\"><\/div>\n<\/div>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content --><!-- AddThis Related Posts generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>BY JIDE AYOBOLU The Nigerian National Petroleum Corporation (NNPC) recently said the nation lost about $750 million to oil theft in 2019. The amount is about N230 billion at the&hellip;<!-- AddThis Advanced Settings generic via filter on wp_trim_excerpt --><!-- AddThis Share Buttons generic via filter on wp_trim_excerpt --><!-- AddThis Related Posts generic via filter on wp_trim_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":69345,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-71914","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles-opinions"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>OIL THEFT AND THE UNDERDEVELOPMENT OF THE NIGERIAN STATE - Pointblank News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/oil-theft-and-the-underdevelopment-of-the-nigerian-state\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"OIL THEFT AND THE UNDERDEVELOPMENT OF THE NIGERIAN STATE - Pointblank News\" \/>\n<meta property=\"og:description\" content=\"BY JIDE AYOBOLU The Nigerian National Petroleum Corporation (NNPC) recently said the nation lost about $750 million to oil theft in 2019. 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