Editorial
Oil Theft: Beyond FG’s Lamentation
At an on-the-spot assessment of some pipelines damaged by vandals encompassed in illegal refining
at Ibaa community in Emuoha Local Government Area of Rivers State, the Minister of State for Petroleum Resources, Timipre Sylva, said the Federal Government would no longer condone any form of criminality in the nation’s oil and gas facilities and installations.
Aside from causing considerable losses for the country, according to him, the criminals entangled in pipeline vandalism were also destroying the livelihoods of locals and the environment. To resolve the issue, he said: “The community must be involved; the security arm must be involved and the third arm, which is the operating public, must be involved. I want to let everybody know that these criminals have their days numbered because the country has lost so much from their activities.”
Crude oil theft is not new in Nigeria. Indeed, the first report of heist of the commodity dates back to the 80s, when the military was still firmly in charge of administering the country. Since then, deliberations surrounding the phenomenon have gained national elevation. However, what is unusual now is the sheer volume of the product lost to non-state actors and the manner the situation has disrupted the nation’s economy.
Major industry players lately raised alarm about the high rate of oil theft in the sector, preventing Nigeria from meeting its approved production quota by the Organisation of Petroleum Exporting Countries (OPEC). Nigeria’s billionaire businessman, Tony Elumelu, had stated that the reason the country could not meet its oil production ratio was not because of low investment but theft. The nation’s oil production allotment as approved by OPEC is pegged at 1.8 million barrels per day, but in the last few years, the country has struggled between 1.3 and 1.4 million barrels.
A 2019 report by the Nigeria Extractive Industries Transparency Initiative (NEITI) stated that Nigeria lost about $42 billion to crude theft, including domestic and refined petroleum products losses from 2009 to 2018. The report gave the breakdown of the losses to entail about $38.5 billion on crude theft, $1.6 billion on domestic crude, and another $1.8 billion on refined petroleum products. NEITI blamed the forfeitures on the government for neglecting oil fingerprinting technology; the absence of broad metering infrastructure of all oil facilities, and other creative strategies to combat the peril.
It is disconcerting that high-level cases of oil larceny have become a danger to the country’s corporate and economic corporality, with the industry now contemplating transporting crude oil from fields to export terminals by trucks. The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, had disclosed that many of the crude oil losings came from Bonny Terminal Network, Forcados Terminal Network and Brass Terminal Network.
Oil theft in the Niger Delta is a national commination. It is one of the most pestilent threats to our nation because it puts so much money in the hands of unregulated non-tax payers. The country is not snug. Apart from revenue loss, this impends over our collective security. The thieves could redistribute the resources to acquire byzantine armouries and face off with the state security agents to achieve their villainous aims.
The government and oil firms should ally to resolve the issue, especially on the agreed volume of oil lost to vandals, since the knots strike at the federation’s revenue. All the stakeholders should embody their activities and thoughts on the question. This measure is peremptory as the situation seems to be getting worse, despite all efforts to rein it in. The imminence must end to enable the country to profit from the surging price of oil and protect the environment from oil spills.
Security agents should open out a unique strategy and a new drive by hounding not only the criminals, but also their chaperones. The scale of crude oil theft and pipeline vandalism seen now is beyond explication. While we appreciate the military for its efforts to end the infraction, we think that the service should collaborate with host communities and oil companies and deploy the right technology to contain the hazard.
Sadly, this felony thrives because of the chicanery of security officials, the communities and political leaders with criminal elements working on their behalf. The government needs to wake up. Currently, most public projects are funded with borrowed funds, enkindling fears that the country might be heading for another debt trap. The Debt Management Office (DMO) says Nigeria is saddled with a debt stock of N38 trillion as of September 2021, up by N5 trillion from the N33 trillion of December 2020.
Nigeria’s security architecture needs a comprehensive overhaul. Buhari should withdraw the current crop of security agents in the Niger Delta because they have failed. The new set should be given univocal mandates, while the perpetrators of these crimes must face stiff penalties. This requires strong political will for the government. Security personnel, community and political leaders involved in the sleaze must be named, shamed, and prosecuted.
The leakage has endured for too long and should be halted. At the height of offensives on oil facilities by Niger Delta militants, OPEC estimated production losses in Nigeria at almost 800,000 bpd facilitated by international syndicates working with local cartels, militants, security personnel and officials. A government-appointed committee declared that the country still lost $1.35 billion to oil theft in the first six months of 2019.
It is oddly foreboding that Nigeria is paying scrimpy attention to a sharp increase in oil theft. A ubiquitous activity in the Niger Delta, oil pilfering costs the Nigerian economy billions of dollars in revenue annually. Feeling the pinch more than ever, the Rivers State governor, Nyesom Wike, had last year, justifiably laid the issue on the table again for national discourse. The governor’s obtrusive points should quickly persuade the Buhari’s administration to act firmly.
When Rivers State Governor, Sir Siminalayi Fubara, received the Board and Management of the Nigerian Ports Authority (NPA), led by its Chairman, Senator Adeyeye Adedayo Clement, his message was unmistakable: Rivers’ seaports remain underutilised, and Nigeria is poorer for it. The governor’s lament was a sad reminder of how neglect and centralisation continue to choke the nation’s economic arteries.
The governor, in his remarks at Government House, Port Harcourt, expressed concern that the twin seaports — the NPA in Port Harcourt and the Onne Seaport — have not been operating at their full potential. He underscored that seaports are vital engines of national development, pointing out that no prosperous nation thrives without efficient ports and airports. His position aligns with global realities that maritime trade remains the backbone of industrial expansion and international commerce.
Indeed, the case of Rivers State is peculiar. It hosts two major ports strategically located along the Bonny River axis, yet cargo throughput has remained dismally low compared to Lagos. According to NPA’s 2023 statistics, Lagos ports (Apapa and Tin Can Island) handled over 75 per cent of Nigeria’s container traffic, while Onne managed less than 10 per cent. Such a lopsided distribution is neither efficient nor sustainable.
Governor Fubara rightly observed that the full capacity operation of Onne Port would be transformative. The area’s vast land mass and industrial potential make it ideal for ancillary businesses — warehousing, logistics, ship repair, and manufacturing. A revitalised Onne would attract investors, create jobs, and stimulate economic growth, not only in Rivers State but across the Niger Delta.
The multiplier effect cannot be overstated. The port’s expansion would boost clearing and forwarding services, strengthen local transport networks, and revitalise the moribund manufacturing sector. It would also expand opportunities for youth employment — a pressing concern in a state where unemployment reportedly hovers around 32 per cent, according to the National Bureau of Statistics (NBS).
Yet, the challenge lies not in capacity but in policy. For years, Nigeria’s maritime economy has been suffocated by excessive centralisation. Successive governments have prioritised Lagos at the expense of other viable ports, creating a traffic nightmare and logistical bottlenecks that cost importers and exporters billions annually. The governor’s call, therefore, is a plea for fairness and pragmatism.
Making Lagos the exclusive maritime gateway is counter productive. Congestion at Tin Can Island and Apapa has become legendary — ships often wait weeks to berth, while truck queues stretch for kilometres. The result is avoidable demurrage, product delays, and business frustration. A more decentralised port system would spread economic opportunities and reduce the burden on Lagos’ overstretched infrastructure.
Importers continue to face severe difficulties clearing goods in Lagos, with bureaucratic delays and poor road networks compounding their woes. The World Bank’s Doing Business Report estimates that Nigerian ports experience average clearance times of 20 days — compared to just 5 days in neighbouring Ghana. Such inefficiency undermines competitiveness and discourages foreign investment.
Worse still, goods transported from Lagos to other regions are often lost to accidents or criminal attacks along the nation’s perilous highways. Reports from the Federal Road Safety Corps indicate that over 5,000 road crashes involving heavy-duty trucks occurred in 2023, many en route from Lagos. By contrast, activating seaports in Rivers, Warri, and Calabar would shorten cargo routes and save lives.
The economic rationale is clear: making all seaports operational will create jobs, enhance trade efficiency, and boost national revenue. It will also help diversify economic activity away from the overburdened South West, spreading prosperity more evenly across the federation.
Decentralisation is both an economic strategy and an act of national renewal. When Onne, Warri, and Calabar ports operate optimally, hinterland states benefit through increased trade and infrastructure development. The federal purse, too, gains through taxes, duties, and improved productivity.
Tin Can Island, already bursting at the seams, exemplifies the perils of over-centralisation. Ships face berthing delays, containers stack up, and port users lose valuable hours navigating chaos. The result is higher operational costs and lower competitiveness. Allowing states like Rivers to fully harness their maritime assets would reverse this trend.
Compelling all importers to use Lagos ports is an anachronistic policy that stifles innovation and local enterprise. Nigeria cannot achieve its industrial ambitions by chaining its logistics system to one congested city. The path to prosperity lies in empowering every state to develop and utilise its natural advantages — and for Rivers, that means functional seaports.
Fubara’s call should not go unheeded. The Federal Government must embrace decentralisation as a strategic necessity for national growth. Making Rivers’ seaports work is not just about reviving dormant infrastructure; it is about unlocking the full maritime potential of a nation yearning for balance, productivity, and shared prosperity.
