• Tuesday, April 23, 2024
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BusinessDay

Oil theft in Nigeria and the enemy within

Billion-dollar crude theft business feeds off official complicity

There have been reports from various quarters, within and around the government, lamenting the unprecedented level of crude oil theft in Nigeria.

Tony Elumelu, the chairman of the United Bank for Africa (UBA), recently tweeted on theft in the oil sector and the social services that are falling apart as well as the challenges of daily survival of Nigerians. He was actually speaking the mind of millions of frustrated citizens of this country and other citizens who live and work in Nigeria.

Elumelu bemoaned the fact that Nigeria was losing over 95 percent of its oil production to thieves. His outcry came on the heels of the Manufacturers Association of Nigeria (MAN) lamenting the rising price of Automotive Gas Fuel (AGO), otherwise known as diesel, as a very worrisome development that has been impacting on businesses negatively, especially the manufacturing sector of the economy.

We also wish to add here that oil theft may not really be confined to the oil communities. There is also a lot to be said for the kleptocratic impulses of state officials

Elumelu in his tweet narrated the ordeal of some of his colleagues at work and noted that apart from the economy, Nigerians are now afraid as a result of the bad security situation.

He wondered why Nigerians are made to pay taxes when the security agencies cannot stop the insecurity. Besides, he pointed out the fact that the reason Nigeria is unable to meet its OPEC production quota is not because of low investment but because of outright theft.

There are proven facts that while oil producing countries are happy that prices have been rising and their foreign reserves growing, Nigeria is in a state of gloom.

While these oil producing countries are smiling as their foreign reserves are rising, Nigeria is suffering in lack. What is therefore Nigeria’s problem? It is time we hold our leaders more accountable.

In like manner, Austin Avuru, the founding managing director/chief executive officer of Seplat Energy and executive chairman AA Holdings, has warned that Nigeria’s oil production has reached an emergency critical status. He states that some oil production wells do not get to see 80 percent of production making it to the terminals due to oil theft. He recommends that the Nigerian National Petroleum Corporation (NNPC) and regulators set up a “war room” strategy to deal with the rising issue of oil theft in the country.

The Federal Government in a quick response to this fresh revelation from these patriotic citizens has stated that it has established a team of experts to carry out a thorough audit of the activities of operators in the upstream petroleum industry in the last two years.

Though the Federal Government has revealed that it is determined to stop the huge cases of oil theft in its oil industry, which is plaguing production. The government states that it has identified a three- element solution to put an end to the issue.

Timipre Sylva, minister of state for petroleum, stated this during an on-the-spot assessment of some pipelines negatively impacted by the unwholesome activities of criminals in the Ibaa community of Emeoha Local Government of Rivers State.

Read also: Oil theft: NNPC tightens noose on perpetrators

The minister stated that the days of crude oil thieves, pipeline vandals and illegal bunkers were numbered as the government would no longer condone any affront on the nation’s oil/gas installations.

Be that as it may, we believe the government should also re-evaluate its community relationships with the oil producing communities. Most of the oil theft, as a matter of fact, is done within and around these communities unannounced.

The fire-brigade approach to tackling issues like oil theft cannot and have never been a solution to such issues. There is an urgent need for a viable government-community relations and a solid oil companies’ community-based relationship.

On the part of the government, soft-security is ideal for solving and controlling oil theft in Nigeria. If the oil producing communities have good roads, healthcare facilities, electricity and other good things of life, it will be difficult for the citizens to abandon the good life and risk their lives in oil bunkering.

But because of the unhealthy nature of their communities, the dwellers of these oil producing communities suffer severe pollution resulting from the oil spills. Therefore, these helpless citizens in order to make a living have had to engage in oil bunkering, which is an economic sabotage to the state.

Against this background, we urge the government to be more comprehensive and proactive in its approach to this critical issue. Oil theft must be stopped so as to preserve the health of our ailing and besieged Commonwealth. We also wish to add here that oil theft may not really be confined to the oil communities. There is also a lot to be said for the kleptocratic impulses of state officials.

More often than not, when this unsavoury incident is reported, they would have made due allowances for their own mischief. Consequently, the government, in seeking solutions to this menace, should also engage in a measure of introspection. Afterall, as far as this untoward situation is concerned; the enemy could well be within!