Port Harcourt, Nigeria – At dawn, the dense streams and swamps of the Niger Delta are shrouded in an eerie silence, broken only by the occasional chirping of herons, a rare water bird found in this part of Nigeria.
Suddenly the water bubbles and spasms in a flash, signaling the approach of galloping speedboats.
The boats typically carry heavily armed militiamen, often dressed in overalls, suggesting they are technicians, said Tonye Francis, who lives in the oil-producing Ogu-Bolo community in Rivers state, which has been in the area for years There is a shadow of an oil conflict.
Also in the boats were several dozen empty mini-drums with hoses attached to the bases that would be connected to a nearby oil pipeline after it had been professionally torn apart, the young man told Al Jazeera.
In no time at all, the mini barrels are filled with crude oil and loaded onto barges. The barges, escorted by speedboats, then leave the bay – crisscrossing other dense streams and swamps that crisscross the area – and head for a waiting foreign ship nautical miles away.
“It feels like a scene from a movie when these activities take place,” Francis said.
“They (the oil thieves) operate unhindered. Sometimes those involved receive security protection from their sponsors.”
Incidents like this have been commonplace for years in Rivers State, which prides itself on being Nigeria’s oil capital. But such incidents also occur again and again throughout the Niger Delta, in which thieves try to siphon crude oil from oil pipelines that crisscross the region.
“Without the support of the military stationed in the region, we cannot stop them,” Francis said.
Nigeria is one of Africa’s leading oil exporters. But oil theft on an industrial scale poses a major threat to communities and the entire economy. Oil theft costs Nigeria millions of dollars every month; About $23 billion in oil revenue was lost in 2022 – one of the highest in recent years.
According to the Organization of the Petroleum Exporting Countries (OPEC), this forced Nigeria to slip as the continent’s largest exporter.
But it appears to be recovering, and authorities are hoping that improved security measures to combat criminals will allow them to finally win the battle against oil theft.
“Oil theft is a big problem”
Rivers is one of the six states that host oil facilities in the country.
As part of a plan to increase oil production in the region, authorities in the state last week unveiled a series of military-grade gunboats to help fight crime and oil theft.
Speaking to Al Jazeera, the state’s governor, Siminalayi Fubara, said that “oil theft is a major problem that requires all hands on deck to solve.”
“These six gunboats donated by my government are intended to assist the Nigerian Navy in drastically reducing the activities of oil thieves,” he said.
The gunboats will improve waterway patrols and response times, particularly near flooded oil export pipelines that are vulnerable to attacks, officials said.
“We have formed local vigilante groups to help protect oil facilities, acquire gunboats and protect the region’s ecosystem,” Fubara added.
Rivers is home to pipelines that transport crude oil from other states to the Bonny export terminal, accounting for 6.5 percent of Nigeria’s total revenue.
But for decades theft has had a negative impact on the overall revenues of a country where around 90 percent of government revenue comes from oil.
Since oil was discovered in commercial quantities in Nigeria in 1958, thousands of oil spills have occurred due to the activities of oil thieves. The decline in production often has a negative impact on government revenue.
This continues to impact people in communities in these oil-rich areas. Those dependent on agriculture and fishing are feeling a direct impact on their livelihoods and residents report numerous health problems.
To provide alternative opportunities for young people, the Rivers State government plans to invest more in health, education and infrastructure in areas at risk of pipeline vandalism.
“We are doing our best to prevent any form of economic sabotage,” Fubara told Al Jazeera, “which is why the country’s production has increased in recent months thanks to our support and protection of the pipelines.”
“Recent successes can be maintained”
Oil exports are Nigeria’s mainstay of crude production, now averaging 1.8 million barrels per day, compared to 1.3 million (bpd) in March, although the country is capable of exporting nearly 2 million bpd.
The chief executive of the state-owned Nigerian National Petroleum Company, Mele Kyari, attributes the increased production to improved safety measures and support from joint venture partners.
“We have reached a new production peak that we have not seen in the last three years. This is linked to the ongoing efforts by the armed forces and other security agencies to protect our critical assets,” Kyari said in Nigeria’s capital Abuja.
“I call for an increased and sustainable commitment to security.”
Industry experts are optimistic that the country’s oil production will peak in a few months if current measures are maintained.
“There is an urgent need to increase crude oil production beyond current success figures to help Nigeria defend the rapidly falling naira and combat the insufficient foreign exchange supply that has hit the foreign exchange market so hard that the knock-on effect is on the rising Costs of goods and services are making themselves felt as citizens struggle to contain harsh realities,” economist Steve Nwachukwu of Steward Asset Management told Al Jazeera.
Nigeria has struggled with rising inflation and a sharply devalued currency since President Bola Tinubu introduced reforms to revive the economy more than a year ago.
Recently, trade union leaders and civil society led anti-government demonstrations to express their dissatisfaction with government reforms, which they say have triggered high inflation.
According to the National Bureau of Statistics, the country’s inflation rate rose to 34.60 percent in November, largely due to rising food prices and an increase in pump prices for petroleum products.
The federal government insists that this phase of the economic crisis is temporary and expects increasing revenues from increasing oil production.
“Recent gains can be sustained if conscious measures are taken to curb oil theft and encourage IOCs (international oil companies) and others to invest and engage more,” Nwachukwu said.
“A complete reorientation”
For the Governor of Rivers State, more efforts are needed to deter oil thieves.
“We are committed to the government’s cleanup of the polluted environment. “That is why we are increasing our support for other sectors of the economy, such as agriculture, to combat poverty, which is one of the main reasons why people destroy pipelines to steal oil,” Fubara said.
“What we need is a complete reorientation of people to stop them from stealing oil. “It is a bad situation because there are children aged 14 and 15,” he added.
Pollution from oil thieves continues to endanger the lives of the delta’s 30 million residents. According to the National Oil Spill Detection and Response Agency (NOSDRA), there were 9,870 oil spills between 2011 and 2021.
These oil spills are mostly caused by oil thieves and most communities are no longer able to farm because their livelihoods have been destroyed.
In the early 2000s, youth from the Niger Delta, distressed by the economic marginalization and environmental degradation in the region, formed armed groups, destroyed oil pipelines and kidnapped oil company employees. These attacks significantly reduced oil production and cost Nigeria a fifth of its production.
A presidential amnesty was granted with unconditional pardons and cash payments to rebels who agreed to give up their weapons.
In recent years, the armed struggle in the Delta has been weakened, in part because of surveillance agreements granted to some former rebel leaders following the amnesty agreement.
Nigeria’s Oil Minister Heineken Lokpobiri admitted the fight against oil theft had been an uphill battle but insisted the country would win.
“Everyone knows that oil theft is one of the biggest economic problems we have. And we are fighting them,” Lokpobiri told reporters in Abuja.
“We are not where we want to be. But in terms of the problem of oil theft, it is definitely a huge improvement. We will continue to fight until we reach 2 million, 2.5 million barrels,” he said.
In 2022, Nigeria lost its top spot among oil-producing African countries, falling behind Angola, Algeria and Libya. However, this year the country bounced back and maintained its place as the continent’s leading exporter, according to OPEC figures released in April.
“(This) will significantly decongest the naira and stabilize the foreign exchange market, which in turn will significantly reduce the cost of goods and services as the high exchange rate is the main factor driving high input costs for businesses and manufacturers,” said economist Nwachukwu.
