NIGERIA’S dysfunctional governance practices have produced another disaster. Tragedy struck on the night of April 22 at Abaezi Forest in the Ohaji-Egbema Local Government Area of Imo State, when an illegal refinery went up in flames. The inferno destroyed scores of vehicles and killed more than 70 persons. The state government identified the victims as illegal refiners engaged in oil bunkering and “sabotaging the nation’s economy.” The horrendous incident demands urgent and effective response from government at both federal and state levels. They must shut down illegal and artisanal refineries in the country and impose punishment on offenders as deterrence.
Ohaji-Egbema is the latest human tragedy arising from the government’s inability to stop massive oil theft, vandalism and illegal refining, and to safeguard oil facilities. The entire Niger Delta region and other oil-producing states are awash in illegal refineries that source crude by sabotaging and stealing from pipelines. Up to 500,000 barrels of crude are stolen each day, depriving the country and oil companies of revenue and creating serious environmental degradation and hazards. Insiders have long warned that the activities of the illegal refineries, like rupturing pipelines, are ticking bombs. The Ohaji-Egbema disaster bore them out. It should be the last.
Nigeria is beset with poor leadership. The tragedy occurred about three months after the Rivers State Governor, Nyesom Wike, indicted security agents for aiding and abetting illegal bunkering and artisanal refining of crude oil in the oil-rich region. “Security agencies are fully involved in this illegal oil bunkering. Civil Defence is involved, Army is involved, police are involved; Navy is involved,” Wike alleged. No effective action was taken.
Following his allegation, the Nigeria Security and Civil Defence Corps disbanded its Rivers State anti-vandal unit and ordered an independent probe of its personnel. But oil bunkering and artisanal refining continue unabated with its attendant environmental pollution and health hazards: toxic oil and intense heat damage of surrounding areas and ecosystem. The emissions also exacerbate an air pollution epidemic in the area, and despoil the land, water and atmosphere.
Nigeria exhibits glaring symptoms of a failed state, unable or unwilling to secure lives and property, and seemingly helpless while its most prized national assets are openly plundered. Failure to stop oil theft is one. The country is paying dearly. Estimated theft of 400,000 barrels per day and loss of $1 billion by Chatham House has risen to over 500,000bpd stolen today.
In an April report, OPEC said oil production in Nigeria crashed by 744,000 barrels in March 2021, citing massive oil theft. It said daily crude production dropped from 1.41 million bpd in January to 1.37mbpd in February and 1.34mbpd in March. Broke and forced to borrow heavily, the country dangerously falls short of its OPEC production quota of 1.73mbpd despite its revenue crisis. The government admits to have lost over $4 billion to stolen crude in 2021. Yet, hundreds of illegal refineries are active in the Niger Delta and other oil bearing states.
The Ohaji-Egbema tragedy is just one of the recurring fatal explosions at illegal refineries, theft sites and vandalised pipelines. Last October, 25 persons, including children, were burnt to death in an explosion at bunkering sites in Rumuekpe, Emohua LGA, in Rivers State. In February, the Nigerian Navy said it deactivated 175 illegal refining sites and seized 27 vessels for bunkering and crude-oil theft within 11 months. There have been dozens of explosions and fire incidents from vandalised pipelines involving hundreds of deaths since the 2000 Jesse, Delta State, pipeline fire disaster that claimed about 250 lives.
In a properly functioning state, such incidents inevitably prompt the adoption of effective preventive measures and punishment for the offenders. Nigeria is remiss in this. Coming a distant second worldwide to Nigeria in crude oil theft with about 74,000bpd lost in 2018, Mexico’s government launched a crackdown that according to Business Insider reduced theft to 5,600bpd by December 2020 (though it is rising again).
Worse is the lack of empathy from political leaders. Since the Ohaji-Egbema tragedy, the President, Major General Muhammadu Buhari (retd.), has not visited the community, content to make statements and empty promises.
Theft and illegal refining continue to flourish. An indigenous producer, Seplat Energy Plc, said 80 per cent of the pump exploration does not get to the terminal but is lost to theft. Chairman of Heirs Oil and Gas, Tony Elumelu, added that “Nigeria is losing over 95 per cent of oil production to thieves.” Such things only happen in a dysfunctional, or a failed state.
The Nigerian government must end the larceny. This calls for a new strategy and drastic reforms of the security agencies. Evidence of collusion with the thieves by the security personnel, industry and government officials, traditional rulers and community leaders is overwhelming. Buhari should order massive redeployment and replacement of security personnel currently deployed in the oil states. There should be a thorough investigation of the officers, involving a scrutiny of their assets and bank accounts. Swift and severe punishment should be imposed on those found culpable.
Deploying technology, including sensors, drones, tech-driven listening devices all over the Niger Delta region is critical. The mission must be intelligence-driven; involving extensive deployment of undercover police, NSDSC, military and State Security Service agents, informants, financial surveillance and tracking, and ‘sting operations’.
All oil-producing states should create local protection units and together, a region-wide task force against illegal oil bunkering, vandalism and refining as illegal bunkerers move from state to state, necessitating a coordinated approach to stop their nefarious venture.
Many more modular refineries should be encouraged and the licence fee reviewed downwards to channel skills into legal productive activity and reduce unemployment.
The federal and state governments should provide medical care for the survivors. Security forces should identify the sponsors of the illegal refinery and their enablers and prosecute them. The government must resolve that this kind of tragedy will never happen again.
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