Oil Theft in Nigeria

- Prevalence: Oil theft is a significant problem in Nigeria, with estimates suggesting that 5% to 20% of oil in Nigeria is stolen.

- Collaboration: Oil theft in Nigeria requires the collaboration of various participants, including corrupt resident oil authority officials, Nigerian security forces, and militant organizations.

- Methods: Oil theft can occur through hot-tapping and cold-tapping of oil pipelines, as well as during the transportation of crude oil products to shipping terminals for expor.

- Consequences: Oil theft has led to violence, corruption, and economic losses, with estimates suggesting that Nigeria lost $10.9 billion in potential oil revenues between 2009 and 2011.

- Recent Efforts: The Nigerian government has taken steps to address oil theft, including the creation of a special operation force, "Operation Delta Sanity," which recovered 8,764,080 liters of stolen crude oil and other products worth ₦7.4bn in February 2024.

- Impact on the Economy: Oil theft has disrupted budgetary expectations, with crude oil and gas constituting 70% of Nigeria's budget revenues and 95% of its foreign exchange earnings.

- Security Measures: The Nigerian National Petroleum Company Limited (NNPC Ltd.) has appealed to the Economic and Financial Crimes Commission (EFCC) to help tackle the menace of crude oil theft.

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