ABUJA/Nigeria: In a compelling demonstration of leadership, Senator Ned Munir Nwoko, representing Delta North, joined by co-sponsors Senators Ede Dafinone Omueya of Delta Central and Joel Onowakpa Thomas of Delta South, has submitted a motion of great significance within the esteemed halls of the Nigerian Senate. This motion serves as a clarion call for an extensive inquiry into the persistent and malevolent scourge of crude oil theft that has beleaguered the Niger Delta region. This pivotal initiative has set in motion a potential seismic shift in the nation’s battle against a criminal enterprise that imperils its economic vitality.
Nigeria’s dependence on its substantial crude oil reserves for sustenance and growth is unquestionable, as emphasized by the motion. In 2022, the oil sector contributed a substantial 6.33% to the nation’s GDP, amounting to an impressive $45.6 billion, according to the National Bureau of Statistics. Beyond its role as a primary generator of employment, supporting millions of Nigerian citizens, the sector shoulders the monumental responsibility of funding 70% of the national budget. Furthermore, oil and gas constitute a staggering 90% of the country’s export income and 85% of its government revenue, as indicated by first-quarter statistics from 2022.
Nonetheless, the motion underscores that the pernicious and enduring practice of oil bunkering has thrust Nigeria into a socioeconomic abyss, presenting a lasting threat to the nation’s economic health. The roots of crude oil theft date back to the late 1970s and early 1980s, during the military regime, and its continued prevalence accentuates the challenges it poses to Nigeria’s oil-dependent economy.
In spite of a series of collaborative efforts, spearheaded by the Joint Task Force of the Nigerian military, including operations such as Operation Delta Safe and Operation Dakartada Barawo, the battle against oil theft has remained far from conclusive. While these endeavors, involving various security entities, states, local governments, and International Oil Companies (IOCs) in the Niger Delta region, have led to increased oil production, the grim reality persists. In the first quarter of 2023, Nigeria achieved a milestone in oil production, reaching 1.51 million barrels per day, marking a discernible improvement from the 1.49 million barrels per day recorded during the same period in 2022, and notably surpassing the production volume of 1.34 million barrels per day in the final quarter of 2022.
Beneath these apparent signs of progress lies a disconcerting truth. Despite the dedicated efforts of select military personnel and security agencies, such as the Nigeria Security and Civil Defence Corps (NSCDC) and the Department of State Services (DSS), in combating oil theft in the Niger Delta, the motion points out that there are insidious actors within these institutions who engage in illicit activities. These individuals, as per the motion, conspire with unscrupulous figures within the oil industry to undermine the nation’s economic well-being.
It is a dire revelation that oil theft in Nigeria persists due to a disconcerting nexus of security forces, militia groups, the local populace, and certain employees within oil companies. Employing sophisticated methods, these parties orchestrate theft from oil facilities within the country. Given Nigeria’s vast oil and gas reserves, the expectation is for crude oil production to continuously increase in line with OPEC’s production quota of 1.74 million barrels per day.
To make matters even more unsettling, allegations and counter-accusations of oil bunkering and various other crimes have embroiled both the military and local militia groups. These allegations underscore the monumental level of sabotage and disruption to the nation’s economic backbone. In 2022, the nation suffered daily losses of approximately 437,000 barrels of crude oil, amounting to a staggering $23 million, as a result of criminal activities. More alarmingly, between March 2023, Nigeria incurred an astronomical loss of 65.7 million barrels of crude oil, valued at $83 per barrel, translating into a staggering revenue hemorrhage of N2.3 trillion due to oil theft.
As the motion passionately argues, the impact of these oil thefts on the nation’s oil sector far exceeds what official reports suggest. What was once a matter discussed discreetly is now taking center stage, attracting substantial attention and concern.
The Nigerian Senate, well aware of its constitutional mandate, has now resolved to address this multifaceted crisis head-on. Section 20 of the 1999 Constitution empowers the state to protect and enhance the environment, as well as safeguard the nation’s land. Furthermore, Section 88 of the 1999 Constitution, in conjunction with Order 101 of the Senate Standing Orders 2022, grants the Senate the authority to conduct comprehensive investigations into the affairs of individuals or government departments charged with responsibilities, providing them with substantial oversight powers.
The Senate, therefore, recognizes that the activities of these oil thieves and their collaborators pose a significant threat to the nation’s economy and have severely hampered crude oil production. In response, the Senate has passed a series of resolutions, including the constitution of an Ad-hoc committee to investigate the actions of security forces, militia groups, the local populace, oil company employees, and any individuals or entities suspected of using sophisticated methods to pilfer from oil facilities. They have also mandated security operatives to deploy advanced technologies, such as aerial drones, to enhance the security of oil and gas facilities and reduce oil theft.
Furthermore, the Senate has called upon the Federal and State governments to create conflict resolution mechanisms involving International Oil Companies (IOCs), host communities, and security agencies to address the root causes of oil theft and pipeline vandalism. They’ve instructed the Nigerian National Petroleum Corporation (NNPC) to engage Host Communities, Local Government and State Government officials, IOCs, and security agencies in collaborative efforts to protect oil pipeline infrastructure. A dedicated Special Court will also be established to handle cases related to oil theft, pipeline vandalism, and associated criminal offenses.
Lastly, the Senate has urged the Federal Government to explore official avenues for engaging with modular and oil bunkering operators and to legalize artisanal refining to enable the production of more refined products at affordable rates for Nigerian citizens.
In essence, this motion marks the genesis of a comprehensive campaign to unearth and dismantle the insidious networks responsible for crude oil theft in the Niger Delta. It is a resounding call to protect the nation’s economic lifeline and ensure that the abundant resources of this great country benefit its people and not a nefarious few. The road ahead is fraught with challenges, but it is also marked by the potential for lasting change and progress.
