CRUDE OIL THEFT IN THE NIGER DELTA: A CHALLENGE TO OIL COMPANIES AND NIGERIAN GOVERNMENT

Abstract

Nigeria is the sixth largest producer of crude oil in the world, and oil and gas extraction account for over 90% of Nigeria’s foreign exchange earnings. However, a large percentage of the revenue that would have accrued to the Federal Government has been lost to oil theft in the Niger Delta region. This work studied Crude Oil Theft in the Niger Delta: A Challenge to Oil Companies and the Nigerian State. The study revealed that the environmental degradation associated with the Oil industry and the lack of distribution of Oil wealth to the indigenes of the Oil Producing Communities have resulted in oil theft in the Niger Delta region. It also showed that the people living in the Oil Producing Communities who suffer directly from the impact of oil production activities have been divested of the management and control of the enormous resources found in their land. The study showed that despite the existence of laws in Nigeria, regulating the Oil and Gas industry, the activities of Oil Companies operating in Nigeria have caused pollution and damages to the Niger Delta environment. In conclusion, it was observed that the exploitative practices of Oil Companies operating in Nigeria, has deteriorated the Niger Delta environment, and in protest the people living in the area have engaged in crude oil theft and sabotage as a move to fight for economic justice. It is recommended that Nigeria should among other things implement fully the provisions of the Petroleum Industry Act (PIA), and the Nigerian Oil and Gas Industry Content Development Act, in order to curb oil theft in the country.