News / Africa

Oil Theft Dilemma Stymies Nigeria's Niger Delta

FILE - A man working at an illegal oil refinery site pours oil under a locally made burner to keep the fire going, near river Nun in Nigeria's oil state of Bayelsa.
FILE - A man working at an illegal oil refinery site pours oil under a locally made burner to keep the fire going, near river Nun in Nigeria's oil state of Bayelsa.
Heather Murdock
Officials in Nigeria's Niger Delta region have burned down hundreds of private oil refineries in recent months on the grounds they are illegal. Some activists are calling for legalization of these refineries, which currently sell black market fuel. Critics say legitimizing theft will only compound Nigeria's problems with chronic fuel shortages and general impunity.
 
There's a long-standing dilemma in Nigeria's oil-rich Niger Delta region. The people are desperately poor and blame the oil companies for polluting their land and fishing waters. As a result, many folks steal oil from pipelines and refine it in barrels along the creeks. That, in turn, further pollutes the environment.
 
The government is caught in the middle, unable or unwilling to completely stop the black market oil trade, but burning down illegal refineries by the hundreds. When the fires die, the refineries are re-built.

Edward Oforomeh, a lawyer and former police superintendent, said, "We have been reading every day, every day that they have been destroying the refinery, destroying the refinery. And they come back. If they come back after destruction, what do you infer from that?"

'Vibrant' black market
 
He said the only way to end this cycle is to legalize and regulate what is now a vibrant black market oil business.
 
"Is this not a vicious cycle? We are just going around the periphery of the whole issue," said Oforomeh. "Solve it by legalizing them, licensing them so they would be able to contribute to the coffers of the government."

He said if the practice were legal, small-time refiners would purchase crude oil from the government refineries, which only refine half of the oil they are allotted.  
 
Activists say they have asked the government to set up a legal framework for small-time refiners, but have gotten no response.

Significant losses

Some observers say that the problem with this plan is that people will not buy crude oil when they can tap into the pipes for free. The Nigerian government says it loses as much as $1 billion a month to oil theft.
 
Wole Olaoye, a columnist for Nigerian newspaper The Daily Trust, said, "Stealing is wrong. These guys breach the pipes, steal the products and refine the goods locally. There is no environmental impact assessment done. Nothing done. They just cause untold pollution.  They steal the resources of the state."

He said any move to regularize the black market oil trade would contribute to another larger problem Nigeria faces: impunity. Analysts and officials across the country complain that many crimes in Nigeria go unpunished, fueling insurgency in the north and instability in the Niger Delta.
 
But in Warri, a Niger Delta oil city, locals say the real thieves are the oil companies, scooping up resources and leaving behind spills. And what fuels instability is simply that amid all this, there's often not enough fuel to run cars or electricity to keep the lights on.
 
Shortages amid abundance

A generator keeps the lights on at a hair salon in Warri. Hairstylist Samuel Okoro said local businesses need to buy black market fuel to run generators because there's often not enough at the gas stations and there's only a few hours of government electricity a day.  
 
"We have fuel in this country, but we cannot see the fuel to buy. We have crude oil in this country, but we don't have it to buy," explained Okoro. "What our concern is that as far as we can have the quality oil to buy.  Whether it's from legalizing the so-called illegal refineries or for the government building more refineries."

At the end of February and for the first few weeks of March, many gas stations across Nigeria were closed because they had no products. The few that were open had lines where drivers sat for up to eight hours to wait for fuel at a regulated price. Other stations that had fuel upped the price as much as 50 percent.

Hilary Uguru contributed to this report from the Niger Delta.

You May Like

China May Be Biggest Winner From Ukraine Crisis

Missile sales, oil and gas shipments are among many areas that may drive Beijing and Moscow closer together in coming years More

Obama Faces a Chaotic World and the Limits of Power

Current foreign policy issues bring into focus challenges for US policymakers who are mindful of Americans' waning appetite for overseas military engagements More

SADC Meeting Lesotho Officials to Resolve Stalemate

Official says regional bloc has been engaged with leaders in Lesotho to resolve political disagreement that led to coup attempt More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
West Africa Ebola Vaccine Trials Possible by Early 2015i
X
Carol Pearson
August 30, 2014 7:14 PM
A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video West Africa Ebola Vaccine Trials Possible by Early 2015

A U.S. health agency is speeding up clinical trials of a possible vaccine against the deadly Ebola virus that so far has killed more than 1,500 people in West Africa. If successful, the next step would be a larger trial in countries where the outbreak is occurring. VOA's Carol Pearson has more.
Video

Video Survivors Commemorate 70th Anniversary of Nazi Liquidation of Jewish Ghetto

When the German Nazi army occupied the Polish city of Lodz in 1939, it marked the beginning of a long nightmare for the Jewish community that once made up one third of the population. Roughly 200,000 people were forced into the Lodz Ghetto. Less than 7,000 survived. As VOA’s Kane Farabaugh reports, some survivors gathered at the Union League Club in Chicago on the 70th anniversary of the liquidation of the Lodz Ghetto to remember those who suffered at the hands of the Nazi regime.
Video

Video Cost to Raise Child in US Continues to Rise

The cost of raising a child in the United States continues to rise. In its latest annual report, the U.S. Department of Agriculture says middle income families with a child born in 2013 can expect to spend more than $240,000 before that child turns 18. And sending that child to college more than doubles that amount. VOA’s Deborah Block visited with a couple with one child in Alexandria, Virginia, to learn if the report reflects their lifestyle.
Video

Video Chaotic Afghan Vote Recount Threatens Nation’s Future

Afghanistan’s troubled presidential election continues to be rocked by turmoil as an audit of the ballots drags on. The U.N. says the recount will not be completed before September 10. Observers say repeated disputes and delays are threatening the orderly transfer of power and could have dangerous consequences. VOA correspondent Meredith Buel reports.
Video

Video Ukraine Battles Pro-Russia Rebel Assault

After NATO concluded an emergency meeting to discuss the crisis in eastern Ukraine, the country is struggling to contain heavy fighting near the strategic port of Mariupol, on the Azov Sea. Separatist rebels are trying to capture the city, allegedly with Russian military help, and Ukraine's defense forces are digging in. VOA's Daniel Schearf spoke with analysts about what lies ahead for Ukraine.
Video

Video Growing Business Offers Paint with a Twist of Wine

Two New Orleans area women started a small business seven years ago with one thing in mind: to help their neighbors relieve the stress of coping with a hurricane's aftermath. Today their business, which pairs painting and a little bit of wine, has become one of the fastest growing franchises across the U.S. VOA’s June Soh met the entrepreneurs at their newest franchise location in the Washington suburbs.
Video

Video Ebola Vaccine Trials To Begin Next Week

The National Institutes of Health says it is launching early stage trials of a vaccine to prevent the Ebola virus, which has infected or killed thousands of people across West Africa. The World Health Organization says Ebola could infect more than 20,000 people across the region by the time the outbreak is over. The epidemic has health experts and governments scrambling to prevent more people from becoming infected. Zlatica Hoke has more.
Video

Video Asian Bacteria Threatens Florida Orange Trees

Florida's citrus fruit industry is facing a serious threat from a bacteria carried by the Asian insect called psyllid. The widespread infestation again highlights the danger of transferring non-native species to American soil. VOA’s George Putic reports.
Video

Video Aging Will Reduce Economic Growth Worldwide in Coming Decades

The world is getting older, fast. And as more people retire each year, fewer working-age people will be there to replace them. Bond rating agency Moody’s says that will lead to a decline in household savings; reducing global investments - which in turn, will lead to slower economic growth around the world. But experts say it’s not too late to mitigate the economic impact of the world’s aging populations. Mil Arcega has more.
Video

Video Is West Doing Enough to Tackle Islamic State?

U.S. President Barack Obama has ruled out sending ground troops to Iraq to fight militants of the so-called Islamic State, or ISIS, despite officials in Washington describing the extremist group as the biggest threat the United States has faced in years. Henry Ridgwell reports from London on the growing uncertainty over whether the West’s response to ISIS will be enough to defeat the terrorist threat.
Video

Video Coalition to Fight Islamic State Could Reward Assad

The United States along with European and Mideast allies are considering a broader assault against Islamic State fighters who have spread from Syria into Iraq and risk further destabilizing an already troubled region. But as VOA State Department Correspondent Scott Stearns reports, confronting those militants could end up helping the embattled Syrian President Bashar al-Assad.
Video

Video Made in America Socks Get Toehold in Online Fashion Market

Three young entrepreneurs are hoping to revolutionize the high-end sock industry by introducing all-American creations of their own. And they’re doing most of it the old-fashioned way. VOA’s Julie Taboh recently caught up with them to learn what goes into making their one-of-a-kind socks.
Video

Video Americans, Ex-Pats Send Relief Supplies to West Africa

Health organizations from around the world are sending supplies and specialists to the West African countries that are dealing with the worst Ebola outbreak in history. On a smaller scale, ordinary Americans and African expatriates living in the United States are doing the same. VOA's Carol Pearson reports.

AppleAndroid