The perennial problems of pipeline vandalism and crude oil theft, which continue unabated in and around the oil-rich Niger Delta of Nigeria, resulted in economic losses for the country amounting to $14 billion in 2014 alone.
This is according to data obtained by Abuja City Business from Stakeholder Democracy Network (SDN), the analysis of which shows that the losses, on a monthly basis, averaged $1,166,666,667, affecting both the government and international oil companies, as well as host communities.
A further analysis of the $14 billion dollar loss shows that oil theft took the highest share of 38 percent; oil companies’ security, 12 percent and government surveillance contracts, 1 percent. Others are oil companies’ corporate social responsibility, which accounted for 4 percent of the loss; oil company maintenance, 9 percent; oil company deferred production, 25 percent; as well as community and oil company clean-up activity, 13 percent.
The environmental damage from this, SDN said, remains immense, with oil spills devastating an estimated 51,500 hectares of land within the period under review, rendering it unfit for any form of productive activity and destroying a vast amount of plant and animal species.
To check this colossal damage to Nigeria’s fast dwindling natural assets, Inemo Samiama, the country director of SDN said: “The new administration in Nigeria must act quickly to address rising agitations and the impact of reduced patronage flows that inflame feelings of anger, resentment and hopelessness in host communities, with heavily armed and well-resourced individuals or groups threatening the security of the oil industry and national income.”
The Nigerian oil industry holds about 12,714 kilometres of oil, gas and refined product pipelines for petroleum extraction and transportation.
In the Niger Delta creeks, enormous sums of money are earned from illicit stolen oil trade, often settled through cash and arms deals, fuelling a “cold war” between entrenched actors and the Nigerian state. This threatens the fragile peace currently holding together the Niger Delta.
SDN believes that, as previous patronage networks strained after the May 29 change of government, old militant tactics of pipeline vandalism, kidnapping and organised crime may again surface.
YANGE IKYAA
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