Why oil theft artisanal refining persist in Niger Delta – Stakeholders

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Ime Akpan

Stakeholders drawn from the Niger Delta region and littoral states have said that non-inclusive nature of the multinational oil companies’ operational system in the Niger Delta is responsible for oil theft and artisanal refining in the region.

The over 50 stakeholders drawn from Abia, Akwa Ibom, Bayelsa, Cross River, Delta and Rivers states stated this at the end of a one-day round table dialogue on ‘Workable long term sustainable alternatives to oil theft and artisanal refining in the Niger Delta.’

The meet was jointly organised by the Institute for Niger Delta Studies (INDS) and the National Coalition on Gas Flaring and Oil Spill in the Niger Delta (NACGOND).

In a communiqué signed by the INDS director, Prof. Ambily Etekpe, and the national coordinator of NACGON, Rev. Fr. Edward Obi, the participants advocated for sustainable alternative livelihoods as panacea to the increasing problem of oil theft and illegal refining activities in the region.

“The non-inclusive nature of the multinational oil companies’ operational system in the Niger Delta is a propelling reason for (operators) venturing into artisanal refining in the region.

“Oil theft and artisanal refining has continued to grow in the region due to factors such as the provision of employment and wealth creation by the sector, improving quality of products, rising demand and subsequent supply, and the state’s inability to provide the product,” they said.

The participants who were drawn from the civil society organisations , the academia, state and federal governments, legislature, security agencies, traditional institutions, oil-producing communities and the media, agreed that oil theft and artisanal refining are socio-political and economic issue rooted in the Niger Delta conflict and development crisis.

They also agreed that oil theft and its subsequent use for illegal refining activities hurt the region’s environment, national economy and health of the operators and communities.

They said that the negative impacts of oil bunkering are mostly pronounced in rural communities stressing that it has disarticulated the local economy.

They called on the federal and state governments as well as the multinational oil firms to “support the development of alternative sources of livelihood within the context of the local economy that are affordable.”

Besides, they urged state and local governments to embark on pro-poor budgeting to address pro-poor concerns such as rural infrastructure and basic amenities, education and communication.

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