Concerned stakeholders have highlighted oil theft as another key leakage that President Bola Ahmed Tinubu must promptly plug to boost the economy, financial resources, and income.
President Tinubu told members of the Progressive Governors’ Forum (PGF) on Friday at the State House in Abuja that the nation’s revenue must be strengthened.
His administration prioritizes boosting Nigerians’ livelihoods, so the move was crucial. Nigeria lost its continental oil production supremacy due to a prolonged drop in daily oil output.
The decline is attributed to oil theft, a persistent problem that is thought to be costing the country hundreds of billions of naira.
In an attempt to reverse the decline, the previous administration of Muhammadu Buhari awarded an N48 billion pipeline surveillance contract to Tantita Security Service Nigeria Ltd., a company owned by former MEND leader Government Ekpemupolo, also known as Tompolo.
In 2022, the Managing Director of the Nigeria Ports Authority (NPA), Mohammed Koko, revealed how vessels enter Nigerian waterways legally but steal crude oil in the Niger Delta before leaving the country.
Koko said that vessel operators generally switch off their Automatic Identification System (AIS), which could help the agency identify stray and suspicious ships in Nigerian seas.
The authorities added that numerous tankers stealing crude oil in its deep waterways generally turn off the automatic identification system to elude maritime police, costing the country billions of dollars in revenue.
Koko’s disclosures followed the Nigerian oil tanker’s escape after stealing illicit crude oil.
While the federal government struggles with inadequate financial resources and often has to borrow externally to stay afloat, oil theft continues at alarming rates across the board, with people in power and military formations responsible for security alleged to be complicit.
Dennis Amachree, former Director of State Services (DSS), says oil theft hurts our economy and oil output.
He observed that oil theft—illegally siphoning, smuggling, or sabotaging oil infrastructure—lost the government enormous money. He claimed the lack of money has slowed oil industry investment, resulting in output drops, environmental degradation, and unsafe working conditions.
Amachree warned that if Nigeria’s security apparatus cannot effectively combat oil theft, it could lead to greater problems, discouraging investors and lowering production.
In his first meeting with service chiefs, President Tinubu hinted at a security philosophy and architecture overhaul.
His government will “invest more in security personnel, and this means more than an increase in number.” We will improve training, equipment, compensation, and firepower.”
Corruption, economic inequality, and organized crime may be connected to oil theft, according to Amachree. He suggested political changes, law enforcement, and socioeconomic growth to address these fundamental issues.
Nigeria will likely need to develop a comprehensive plan that addresses the core causes of oil theft to restore leadership in oil production. Security, infrastructure protection, governance, transparency, economic diversification, and international coordination to prevent illegal oil trade may be needed.
I also support rational theft arrests and thorough prosecution. He also called for high-profile oil thief arrests and trials.
Rear Admiral Henry Babalola (RTD), a former navy spokesman, said that stopping oil theft in Nigeria will require national rebirth, attitudinal change, and cracking down on oil thieves, their collaborators in the security sector, the oil sector, the local community, ship owners, and international collaborators.
Babalola added that the government knew about oil thieves, but its unwillingness to prosecute them has emboldened others.
“This hydra-headed monster requires strict laws. If we don’t eliminate oil thieves, this country will die. The government must also punish host community leaders and accomplices. Repositioning the Nigerian Army, Navy, DSS, and Joint Task Force DELTA SAFE would boost efficiency.
“Firing oil thieves is not enough. To dissuade others, they should forfeit ill-gotten money to the government and serve severe sentences. The EFCC mostly arrests “Yaho boys” while economic saboteurs go free. “Oil thieves live among us and have become powerful and filthy rich, while some have found their way to political offices,” he continued.
Given the complexity of pipes crisscrossing the Niger Delta’s marshy mangroves, Babalola said fighting crude oil theft will require enormous technological deployment. He stated that oil firms and security organizations like the Nigerian Air Force and Navy Air Arm must actively overfly these regions.
Additionally, advanced drones and unmanned boats with close-circuit cameras should be developed. Our oil must be carbonized to be sold. DSS must also monitor criminals to stop them before they steal.
“The National Intelligence Agency should be charged with identifying foreign collaborators. He added that sub-regional, regional, and global collaboration should be prioritized.
“The recent contracts given to ex-militants and agitators to monitor oil pipelines were a last-gap government decision to tackle oil theft,” said Babalola, former Flag Officer Commanding, Eastern Naval Command, Calabar, and Chief of Training and Operations, Naval Headquarters. Though it seems beneficial, deploying thieves to apprehend criminals is only short-term.
Modern security and intelligence assets must be acquired to reorient security agencies. Agency leaders must punish failures.
“Oil companies should expand private maritime security company activities. Finally, the Nigerian Navy must monitor our marine environment, waterways, and sea approaches more aggressively, while Nigerian Army amphibious troops must be prepared to effectively police the marshy Niger Delta.”
Barr M. A. Animashaun, a prominent lawyer, attributed oil theft in Nigeria to negligence, environmental deterioration, and excessive unemployment in the Niger Delta.
“The lack of political will on the part of successive governments to hold accountable the multi-national oil companies for pollution of land, streams, and rivers, which are the main sources of farming and fishing for the inhabitants, had aggravated not only oil theft but also crime rates like kidnapping in the region.
Section 2 of the Act punishes oil theft with death or 21 years in jail. He said that blowing up oil pipelines constituted sabotage under the Act.
Animashaun advised electronic cargo monitoring, a polluter-pay policy, security agency coordination, environmental rehabilitation, and sustainable development to prevent oil theft.
Dr. Wilson Esangbedo, former President of Private Security Practitioners, remarked that most security companies are not blameless in halting crude oil theft since some are implicated in the crime.
Asking extremists to defend our oil infrastructure shows that security authorities have failed. System overhauls assist. Fighting crude oil theft seems to require too many entities.
“Let one agency fight this crime. This threat will end if you equip, finance, and inspire them. NSCDC can curb crude oil theft, but they are underfunded and intimidated by other security services.
“Until they confront this crime, the new leadership will borrow money to run the country. Almost everyone steals crude oil. The future president’s body language, actions, and appointments will indicate his commitment to battle this problem that has made Nigeria practically the world’s poorest nation despite vast natural resources.
Meanwhile, maritime experts have advocated coastguard and central control unit deployment to combat oil theft, alleging that highly-placed Nigerians and some Nigerian Navy personnel collude with foreign shipping companies to lift oil illegally on the waters.
They say wealthy nations have used technology to combat territorial water piracy.
Captain Alfred Oniye, a US-certified marine anti-piracy security specialist, claimed high-profile figures are engaged, making oil theft a political enterprise.
Because it’s a business for certain celebrities, you can’t eliminate this danger. No one investigates who funded the operation or who owns and bunkers the vessels. Only the crew is arrested. He called it “security-related organized crime.
Oniye said the Nigerian Navy requires coastguard and central control unit technology to combat oil theft in its waterways.
He stated, “If you beat the security at the territorial waters or high seas, you won’t be able to beat the security at the backwater.” The coastguard protects the backwater and enforces the convention.
Unfortunately, Oniye remarked, strong forces are battling against a coast guard in Nigeria for their gains.
Olisa Agbakoba, a maritime lawyer and former NBA president, said Nigeria lacks a strong institutional framework to protect its waters, from inland waterways to the exclusive economic zone.
He claimed oil theft and other marine crimes occur in the nation because its seas are unpoliced.
The marine lawyer claimed Nigeria has had various types of maritime securities for 20 years, none of which have worked, making it easier to steal crude oil from Nigeria.
Ajanonwu Vincent, National Coordinator, Policy and Practice Committee, Nigerian Ports Consultative Council, stated that the Nigerian Navy is entirely responsible for protecting the nation’s territorial waters, which extend 700 nautical miles into the ocean.
He added that the role also includes supervising inbound and outbound ships, whether oil tankers or ordinary cargo boats, and preventing vessels from entering Nigerian national seas without permission.
