Nigeria’s stolen crude
The recently released Chatham House report entitled “Nigeria’s Criminal Crude” brings to fore once again the intricate network of crude oil theft in the country, the attendant huge revenue loss, and the multiplier effects of this theft on the nation’s image, security and political economy.
With an estimated 100,000 barrels of crude oil lost daily from the pipelines in the Niger Delta during the first quarter of 2013 and an estimated global loss of up to 400,000 barrels of crude oil daily, it is clear that the oil theft activity in Nigeria is an organised crime.
The report highlighted how banks are used by this oil theft network to launder monies. Among possible money laundering hotspots highlighted are countries like the United Kingdom, United States of America, Dubai Singapore, and India. This crude oil theft makes Nigeria to lose up to $5 billion in potential revenue.
This organised crime that has been going on for quite long should be tackled strategically and curtailed before it becomes an octopus. It is deplorable how those who should be really concerned have treated this monumental economic loss with kid gloves. The lip service paid to the stoppage of this gargantuan loss may be linked to the perception that this oil theft is either propped by those in the corridors of power or these persons aid and abet the oil thieves. That is why the stoppage of this crime lies squarely in the realm of the political will or desire of the ruling class.
As it is alleged that oil theft often funds political contest in Nigeria, and the lines demarcating official and illegal crude oil sales remained blurred, addressing this criminal activity like official corruption in Nigeria is hinged on the nature of politics in Nigeria- politics of the belly, the creation and nurturing of prebends by the political class.
The report’s remark that Nigeria provides an enabling environment for crude oil theft is something that should worry the leadership of the country, especially as it points out that the country’s political economy or her form of governance provides fuel for violent opportunism and the desire for looted resources.
We believe that this report which captures the nature of broken governance in the country and the rape of Nigeria by those who have held on to political power in the country should be treated with utmost seriousness by the presidency, federal executive council, and public officers. It should not be dismissed, or reacted to, in a lackadaisical manner. Recommendations proffered in the report should be carefully appraised and a commitment extracted towards the stoppage of this oil theft.
Being the 13th largest oil producer globally and operating a mono economy which makes us depend largely on crude oil sales for foreign exchange and revenues, the growing theft of the country’s crude oil is a blatant rape of the resources of this country by a few who care less about the conditions of the majority. No wonder the common refrain from disaffected and disgruntled youths who engage in rising kidnap cases is “we want our share”, alluding to a ruling class that had gotten its share of the loot leaving the majority, especially the millions of youths, hopeless.
It is time to act and quickly too.
By: BusinessDay