The Nigerian Oil & Gas space has remained largely challenged by various factors, chief amongst which are the age-long pipeline vandalism and crude oil theft. The delayed birth of the Petroleum Industry Act (PIA) and the global drive for Environment, Sustainability and Governance (ESG) investing are other factors behind the recent increase in divestments by the International Oil Companies (IOCs). These factors have led to a negative GDP growth rate for the Nigerian Oil & Gas Industry in recent years. Crude oil production contracted to an all[1]time low of 972,394bbl in August 2022. Consequently, the fiscal space has remained constrained particularly as crude oil earnings constitute c.80% of the nation’s foreign exchange earnings. 

Meanwhile, following the multi-billion-naira pipeline surveillance contract awarded by the Nigerian National Petroleum Company Limited to a former leader of the Movement for the Emancipation of Niger Delta, Government Ekpemupolo, popularly known as Tompolo, there has been increasing reports of progress in taming crude oil theft. According to a Punch news report, operatives of the newly contracted private oil pipeline surveillance team, Tantita Security Services, effected an arrest on 6 October 2022, on the creeks of Escravos, whilst crude oil was being loaded illegally into a ship. About 600 to 650 cubic metres of illegally lifted crude oil in five compartments was said to be on board the vessel at the time it was arrested. 

The report further noted that the Nigerian Navy personnel set the ill-fated vessel on fire following the confession of the captain of the ship, Temple Manasseh, that the vessel was crude laden. The Marine Intelligence Consultant for Tantita Security Services, Captain Warredi Enisuoh, affirmed that the arrest was aided by intelligence gathering, explaining that the security men monitored the space via satellite. Captain Enisuoh stated that records showed that the Dutch vessel sold to a Nigerian had been used for moving crude oil illegally for years, adding that the arrested vessel was scheduled to take the stolen crude to Tema in Ghana. 

Earlier in October 2004, the Chief Executive of the Nigeria National Petroleum Company Limited Mele Kyari while appearing before a joint senate committee on Upstream, Downstream and Gas revealed that the company had uncovered an illegal 4km pipeline from forcados in Delta State to the sea, and a loading Port that has operated in the last nine years. Moreso, Vanguard news reported that the Tompolo’s firm uncovered additional 42 tapping points in Delta and Bayelsa states used by oil thieves, bringing the total discovery to 52 as of 10 October 2022. 

We consider efforts to curb the menace of crude oil theft, a national emergency as losses to oil theft and official leakages could begin to exceed official receipts of oil revenues, if numbers being published are anything to go by. We think that the current progress, if sustained, will provide some respite to the dwindling oil production levels. However, there is need to seek a permanent solution rather than sporadic and expensive surveillance contract awards.