Impact of Oil and Gas Theft in Niger Delta of Nigeria

This research paper critically analyzes the impact of oil and gas theft in the Niger Delta of Nigeria. It evaluates the reasons behind illegal oil thefts, the perpetrators and operators of these thefts, and the measures that can be taken by the government to address the spade of oil and gas theft in Niger Delta.

Running head: IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
Critical Analysis of the Impact of Oil and Gas Theft in the Niger Delta of Nigeria
Name of the University:
Name of the Student:
Authors Note:

1IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
Acknowledgement
This research was supported/partially supported by the university professors and my fellow
classmates.I also thank mybatch mates and librarians who provided insight and expertise that
greatly assisted the research, based on which necessary interpretations/conclusions has been
gathered from this paper.

2IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
Abstract
Oil theft has turned out to be an accepted form of militant activities there has been increasing
worrisome incidence report regarding “illegal oil bunkering” and unauthorized local refineries in
Niger Delta. The aim of current research is to carry out a critical analysis of the oil theft impact
in the Niger Delta of Nigeria. The paper revealed that the government along with multinational
oil organizations operating in the Niger Delta region at every level with several levels in several
state of Niger Delta. Moreover, a huge amount of resources has been sent in order to equip the
state security agents in order to secure the oil facilities along ith important personnel against the
conducts of the oil theft in Niger Delta region. From findings of the paper certain
recommendations have been provided the establishment of technical safeguards as a part of pipe
covers along with burying them within the grounds against the oil and gas theft in Niger Delta
region which can turn out to be nonalternative solutions.

3IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
Table of Contents
1. Introduction......................................................................................................................6
1.1. Research Purpose......................................................................................................6
1.2. Research Problem.....................................................................................................6
1.3. Research Aim, Questions and Objectives.................................................................7
2. Literature Review............................................................................................................8
2.1. Introduction...............................................................................................................8
2.2. Oil and Gas Theft and Illegal Bunkering524............................................................9
2.3. Operational Mechanisms and Actors of Oil and Gas Theft in Niger Delta............10
2.4 Loss of Oil due to Criminal activities......................................................................11
2.5. Understanding Implications of Oil and Gas Theft..................................................12
2.6. Efforts Taken by Nigerian Government to Deal with Oil and Gas Theft...............15
2.7. Research Gap..........................................................................................................16
2.8. Summary.................................................................................................................16
3. Research Methodology..................................................................................................17
3.1. Introduction.............................................................................................................17
3.2. Research Onion.......................................................................................................18
3.3. Research Design.....................................................................................................19
3.4. ResearchApproach..................................................................................................19
3.5. Research Philosophy...............................................................................................20

4IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
3.6. Data Collection Method..........................................................................................20
3.7. Data Analysis Method............................................................................................21
3.8. Ethical Considerations............................................................................................22
3.9. Summary.................................................................................................................23
4. Data Analysis.................................................................................................................23
4.1. Theme 1:.................................................................................................................23
4.2. Theme 2:.................................................................................................................26
4.3. Theme 3:.................................................................................................................29
4.4. Theme 4:.................................................................................................................30
5. Findings and Discussion................................................................................................32
5.1. Theme 1: To analyze the reasons behind illegal oil thefts on the Land and High sea
bunkering in Nigeria......................................................................................................................32
5.2. Theme 2: Economic Perpetrators and Operators of These Thefts..........................34
5.3. Theme 3: Financial Loss of Revenue Takes Place as A Result of Massive Theft
and Vandalism...........................................................................................................................36
5.4. Theme 4: Steps That Can Be Taken by The Government in Addressing the Spade
of Oil and Gas Theft in Niger Delta..........................................................................................38
6. Conclusion.....................................................................................................................40
6.1. Conclusion..............................................................................................................40
6.2. Linking with the Objectives....................................................................................41

5IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
6.3. Future Research......................................................................................................43
7. Recommendations..........................................................................................................43
8. Reflection.......................................................................................................................46
References..........................................................................................................................49

6IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
1. Introduction
1.1. Research Purpose
The crude oil theft turnnd out to attain increased media in Nigeria and the downstream
theft of crude oil has confinedwithin this radar. Along with this, downstream oil and gas theft has
affected the income of federal government along with 90% of the export offerings (Akpomera
2015). The objective of the research is to evaluate the impact of oil and gas theft in the economy
and financial situation of Niger Delta in Nigeria. It will also analyse the ways in which the
financial loss of revenue along with economic disruption takes place because of “pressure
tapping” theft that involves evaluating a high-pressure operational pipeline along with diverting a
fraction of oil and gas flow (Albert, Amaratunga and Haigh 2018). Moreover, the purpose of the
research is also to explain the ways in which “bunkering” takes place in which a fraction of oil
and gas is loaded within the ship that has becomesynonymous with oil theft.
1.2. Research Problem
Oil theft has turned out to be an accepted form of militant activities there has been
increasing worrisome incidence report regarding illegaloil bunkering and unauthorized local
refineries in Niger Delta (Boris 2015). It is also observed that “oil theft or bunkering” siphons off
the major contributor of Nigerian economy for private gains. Oil theft along with other insecurity
spate did not continue but become more pronounced. It was also revealed that illegal oi
bunkering in the Niger Delta region serves among the major issues in Nigeria that has grown in
leaps and bounds and the only way to deal with this is crime is to recognize the people
responsible for the same (Ejiba, Onya and Adams 2016). A recent report has declared that the
nation has lost around $ 20 billion yearly because of crude oil theft. Such increase on crude oil

7IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
and gas theft has caused major concern for Nigerian economy along with financial loss of
revenue. Issues regarding oil and gas theft within the nation has turned out to be a drastic issue in
absence of collaboration or activities of saboteurs (Nriagu et al. 2016). It was also revealed that a
major threat to Niger region’s oil industry took place from activities of cartel or mafia.
Considering such research problem, the current research will focus on analyzing the ways in
which theft of crude oil can be eradicated in the upcoming years and the ways in which issue of
oil theft and crude oil pipeline tampering to deal with financial losses (Obida et al. 2018).
1.3. Research Aim, Questions and Objectives
The aim of current research is to identify the amount of oil that is lost to criminals by
Nigeria and thereby evaluate the different activities that might be undertaken by the government
in order to change the situation.
The objectives for undertaking the research are:
 How much oil is Nigeria losing to criminals?
 Who are the perpetrators and operators of these thefts?
 What measures can be taken by the government in addressing the spade of oil and gas
theft in Niger Delta?
The objectives those are to be met through completion of this current research are elaborated
below:
 To analyze the reasons behind illegal oil thefts[ Land and High sea] bunkering in Nigeria
 To analyze the implications of such massive theft and vandalism.
 To evaluate the steps that can be taken by the government in addressing the spade of oil
and gas theft in Niger Delta.

8IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
2. Literature Review
2.1. Introduction
Onuoha (2016) revealed that several years of oil and gas operations within Niger Delta
have gathered million dollars of government revenue but more than 30 million people of the
nation remain poor and unemployed. Dissatisfied from precede lack of benefits from production
of oil and gas, communities have targeted energy operation companies demanding better public
services along with larger government revenue shares. Focused on the same, the literature review
will focus on explaining the factors those resulted in criminal movements along with massive
thefts of crude oil and gas. Mary Converse (2014) have also confirmed that the increase of oil
theft in region of Niger Delta is observed to be increasing. It has been observed that Nigeria is
dealing with revenue loss because of 300,000 crude oil and gas barrels loss each day due to theft,
vandalism of pipeline and associated criminal activties within the nation’s oil and gas sector.
Several efforts have been taken by the Federal government to deal with the illegal oil and gas
diversion within the Niger Delta region. (Coleman 2013) added that this has been done through
increasing the security spending over the years along with devoting millions of amount annually
for hiring the private security companies. Despite such efforts it has been observed that increased
pipelines destruction along with oil facilities all around the Niger Delta region through trade of
stolen oilthrough the criminal cartels with global connection. This indicates that increased public
funds investments on securingof the oil and gas facilities that did not attain the necessary results.

9IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
2.2. Oil and Gas Theft and Illegal Bunkering524
Håkansson (2013) explained oil and gas theft can also be explained as illegal bunkering
which is a hacking act within the pipelines for stealing the crude oil and gas that is later sold or
refined abroad. It serves as an illegal trade which considers crude oil and gas theft along with its
by-products by means of several mechanisms. These researchers also defined oil and gas theft as
these stealing these materials from flow stations or pipelines along with crude oil added to the
cargo which is not held responsible. van Wyk (2012) supported the above statement through
using Nigeria as a general term including unauthorized ships loading and also includes act of
theft, diversion along with oil smuggling. These researchers also stated that in Niger Delta it has
been observed that there is an increased illegal domestic and global crude oil trading. This has
increased from few matures in the 1980s those used certain theft processes from pipelines to
highly sophisticated weapons that has been acquired with money that is gathered directly or
indirectly from oil and gas bunkering.
Tracy (2012) revealed that adding insecurity in certain areas of the Niger Delta region
results in oil-purchased arms accessibility with illegal bunkering that contributes to a bigger
fraction of the region’s violent criminal acts, armed robbery along with privacy and kidnapping.
These researchers have also elaborated that to decrease the impact of such drastic effects of oil
and natural gas bunkering the federal government must promptly be involved with the
multinational oil organizations to are on the modalities for installing wellheads, flow stations
along with effective export terminals that can ensure the oil quantity produces for measuring the
quantity lost to thieves and illegal blunderers (Collis and Hussey 2013).

10IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
2.3. Operational Mechanisms and Actors of Oil and Gas Theft in Niger Delta
Collis (2013) revealed that oil theft is conducted at various levels along with quantities
and there are several methodsthrough which the operations of oil theft is conducted in Niger
Delta of Nigeria. The most renowned method of stealing crude oil is through puncturing the
pipeline and through transferring the product from one place to another. Moreover, such theft
also takes place through tapping the point where oil has been punctured or ruptured. These
researchers have also revealed that thereexist three major operational techniques of illegal oil and
gas bunkering theft in Niger Delta region. Wahyuni (2012) added that such factors include a
minor along with small scale concentration of condensate along petroleum good destined for the
local market and direct hacking within the pipelines or tapping with those from wellhead by
means of removal of tress. Such operational methods also include excess crude oil lifting beyond
the incensed amount through employing landing of forged bills. The first operational factor is not
that significant as that is carried out by local people those hide within the cover of violence
within Niger Delta region and another category brings an increased technical sophistication
within business with the stolen goods segmented within small barges and taken within the sea
where that is loaded within huge barges. Zikmund, Babin, Carr and Griffin (2013) evidenced that
such oil and as theft operation takes place through placing the stolen products within smaller
rages and driven straight within the sea in which it is loaded within huge barges in return of
money along with weapons employed for fuel violence and the last category is just regarding
corrupted system that is facilitated by an official corruption. This further includes the
implementation of forged bills of lading that is issued by carrier to a shipper along with listing
and along with backlogging goods receipt for transport along with specifying delivery terms
(Levy and Lemeshow 2013).

11IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
According to views resented by Etikan, Musa and Alkassim (2016) it has been gathered
that oil theft within the Niger Delta is within an industrial scale along with involving the
commodity traders, global criminals along with a tall network of people. In addition, it has also
been revealed that there are huge global syndicates associated within the oil and gas theft
operation that also deals with money laundering fir the global players. In contrast, Bryman and
Bell (2015) discussed in their research that high unemployment rate in the Niger Delta region has
generated a high population of idle young individuals those get easily associated with oil related
crimes. Such type of crimes is observed to be reinforced in lack of clear measures taking place
from non-prosecution of the identified perpetrator.
2.4 Loss of Oil due to Criminal activities
Nuhu Ribadu, Chairman of the Petroleum Revenue Special Task Force, stated that the
criminal activities and oil thefts has affected the economy by $25 million in revenue summing to
$9 billion annually (Håkansson 2013). Zikmund, Babin, Carr and Griffin (2013) stated in a
research that the crude oil theft grew by 50% in the year 2017. It affected the revenue structure
and the functioning of the businesses. The growth in the oil prices by $100/ barrel has resulted to
the growth of lucrative businesses relating to the thefts of oil and petroleum. Large scale
bunkering and tapping activities has resulted to the loss of around 250,000 barrels of crude oil.
However, President Muhammadu Buhari claimed in an interview that around 1 million barrels of
crude oil were stolen a day, which affected the annual turnover finally (Watts 2017). Flinn
(2016) stated that the growing unemployment in the different regions of Nigeria has resulted to
the growth of the criminal activities relating to the oil and petroleum thefts. On the other hand,
Yeeles and Akporiaye (2016) stated that the growth of the criminal activities are based on the
lucrative design of the operations and the profitability of the black marketing ventures. Terrell

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(2012) evidenced that oil theft within the Niger Delta involves a difficult web of relationship
spanning in all the levels of society that involves diverse relationship. These researchers also
stated that there are certain factors that endanger the existing thriving of oil theft activities within
the Niger Delta region. There are several reasons for which financial loss and drastic economic
impact takes place through oil and natural gas bunkering such as ignorance, poverty, and greed,
absence of respect for survival of the economy and ad governance.
2.5. Understanding Implications of Oil and Gas Theft
Watts (2016) indicated that economic impact of oil and gas theft in Niger Delta can be
understood through realizing certain operational mechanism of oil theft in Niger delta. The most
popular technique of steeling crude oil and gas is through puncturing pipeline conveying
products from one point to other. These researchers have also stated that the increase in illegal
bunkering in Niger Delta is because of high youth unemployment, inefficient along with corrupt
law enforcement agencies of Nigeria. Wilson (2014) revealed that the damage caused by the oil
thieves turned out to be the major reason for violent conflict within Niger Delta and is forcing
several nations to shut the pipelines down. This resulted in serious threat to national security for
the reason that the nation greatly relies on oil and gas exports for survival. Yeeles and Akporiaye
(2016) also added that other than the nation’s economic loss, very less investment inshore
production and exploration along with illegal oil bunkering conflict has destabilized the Niger
delta region. These reasechers also explored that the violence taking place from the oil theft
actors is threating the peace and security of Niger Delta region is speeding steadily.
Yeeles and Akporiaye (2016) stated that oil a gas of the Niger region serves as the major
factor which derives the Nigerian economy ad through implication the determination its overall
socio-political configuration. These reasechers also explained that any aspect that impacts oil and

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gas production in Niger Delta has posed a major threat for national economy, political stability,
along with integration of regions of Nigeria. Several researches have been conducted regarding
examining the socio-economic effect of oil and gas theft in the Niger Delta region(Collis and
Hussey 2013). It has also been revealed that an increase in the oil and gas theft and illegal
bunkering within the Niger Delta region serves as an economic crime against Nigeria state and it
undermines economic development strategies along with endangering social disorder.
According to views presented by Whanda et al. (2016) the oil and gas thefts in Niger
Delta region has severe impacts on the financial loss and economic consequences in Nigeria.
These socio economic and financial impacts of such situation are explained under:
 Socio-economic losses within Nigeria estate: evidenced that the socioeconomiceffects
related to oil and gas theft in the Niger Delta has resulted in loss of economic conducts
for the communities along with loss of profits for the government. This further results in
insufficient funding along for the development strategies thoseenhanced criminality
within the Niger Delta region. For this reason, absence of security because of such illegal
conducts has resulted in infiltration of global collaborator along with developing poor
image for the nation. According to research carried out by Flinn (2016) it has been
gathered that Nigeria lost around N191 Billion because of decrease in the crude oil
production taking place from incessant crude flight along with vandalism along with the
important pipelines within the Niger Delta. Daily production of crude oil and gas
fluctuated between 2.1 and 2.3 million barrels each day in comparison to the estimation
of 2.48 mbpd (Watts 2017). Such drop between the real productions along with
estimation for the first quarter of 2015 led to decrease in the revenue of crude oil and gas

14IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
revenue that is around $ 1.23 billion which might have accrued to the Federation
Account.
 Economic Losses to International Oil Companies:Amuwo (2016) indicated that
attacks on the facilities of oil and gas production has resulted in numerous shutdowns
along with declaration of force majeure by the global oil organizations. This is further
leading to loss of revenue or the oil companies along with the government of the nation.
The conducts of oil theft within the Niger Delta region has resulted in numerous shut-ins
of the crude oil production along with pipelines particularly by the global oil
organizations. Orluwene(2017) evidenced that this has resulted in decrease of the
production capacity alonewith revenue losses for the oil companies. These researchers
also evidenced that the global oil companies operating within Niger Delta area are
dealing with heavy losses of revenues to the organizations as surfed in crude oil theft and
supply disruption has affected their earnings. Researchers namely, Austine, Sunday and
Raymond (2014) elaborated that in the year 2013 companies like Shell has to shut down
its trans-Niger pipeline that was supposed to carry around 150000 barrels each day. This
economic loss took place because of theft within one week of its establishment in the
nation. Considering same, there is an increased requirement by the oil and gas
organizations to repair their pipelines and control oil spills that needs increased capital
expenditure resulting in huge loss of revenues in oil organizations.
 Insecurity within the Niger Delta Region that causes threat to national along with
regional security and peace: The damage that is caused by the oil and natural gas
thieves are observed to persuade the oil companies in the Niger Delta region to shut down
the pipelines. For this reason, Nigeria is observed to produce oil at 2 million barrels each

15IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
day that low than its capacity of 2.5 million barrels each day. Otto (2015) evidenced that
this is a major theft to the national security basically as Nigeria relies majorly in oil and
gas exports for sustaining its economic growth. In addition to the economic loss, loss pf
investment production and onshore exploration, security risks along with damage to
revenue of the companies has resulted in destabilization of the Niger Delta region. Koos
and Pierskalla (2016) also added that oil and gas theaters as the major reason for violet
conflict taking place in Niger Delta region. Several factors related with oil theft such as
exchange of crude oil for heavy arms within the high sea with the major aim of
employing such alarms to secure their illegal conducts within the region of Niger Delta.
2.6. Efforts Taken by Nigerian Government to Deal with Oil and Gas Theft
Adekola et al. (2017) revealed those successive Nigerian governments have considered
accepting certain policy measures in response to deal with the economic impact of oil and gas
theft over the years. The government has also considered to deal with increasing oil and gas theft
through appointing a task force on national strategic infrastructure. This is intended to monitor
and respond to such concern, establishing a special security outfit along with militarization of
Niger Delta region increased certain chances of enforcement against the maritime trade within
stolen oil and gas. This included Nigerian navy being to fight against the theft of crude oil along
with pipeline vandalism. These researchers also revealed that federal government of Nigeria
must also demonstrate the political will to reveal the major source of oil and as theft along with
illegal bunkering that can secure the connection to sere deterrent to others. Okafor and Olaniyan
(2017) examined in the research that the federal government of Nigeria must focus on ensuring
speedy development withinNiger Delta region for pacifying its inhabitants in order to
marginality conducted over years. To address the issue of oil and natural gas theft the

16IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
government of Nigeria must consider offering employment opportunities to all the youths of the
region. The government has also taken several initiatives in dealing with the oil theft issue and
the resultant operational skills through paying compensation to the Nigeriancommunities and
individuals those are affected by the spill (O’tega and Ofualagba 2016).
2.7. Research Gap
From analyzing the previous researches existing on the economic and revenue loss
impact of oil and as theft in Niger Delta region, it has been observed that there exists a research
gap in explaining the economic and financial effects of such concern in Nigeria despite of
measures taken by the country’s management. Moreover, previous researches also have a
limitation in factors that resulted in such oil and gas theft and bunkering activities along with its
long-term impacts on the economic environment of the nation (Jimoh 2015). Considering such
research gap, the recent research will explain the impact of oil and theft bunkering in the Niger
Delta region along with elaborating the operational mechanism of oil and gas theft in Niger
Delta. In addition, the current research considers to address the identified gap of the previous
studies through carrying out thematic analysis and carrying out detailed research on the socio-
economic and financial impact of such concern in Nigeria along with evaluating certain
measures in dealing with oil and gas thieves (Gundlach 2018).
2.8. Summary
The literature review in this research focused on evaluating the oil and gas theft impact
on revenue loss and economic issues in Nigeria. It also aimed at identifying the quantity and
value of the oil that is stolen from the reserves and the manner in which affected the economic
condition of the nation. From carrying out detailed literature review from analyzing viewpoint of
different scholarly articles and journals, it has been gathered that economic impact of oil and gas

17IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
theft in Niger Delta can be understood through realizing certain operational mechanism of oil
theft in Niger delta. On the other hand, the literature review also focused on recording the public
opinions of different important people in Nigeria in order to understand the impact of the
criminal activities on the oil thefts. The most popular technique of steeling crude oil and gas is
through puncturing pipeline conveying products from one point to other. The literature review
focused on explaining the factors those resulted in criminal movements along with massive thefts
of crude oil and gas. Moreover, it has also been revealed that an increase in the oil and gas theft
and illegal bunkering within the Niger Delta region is an economic crime against Nigeria state
and it undermines economic development strategies along with endangering social disorder.
3. Research Methodology
3.1. Introduction
Research methodology employed in this research facilitates in attaining better
opportunities that enhances reliability of the results attained by the reasechers in the current
study. Moreover, implementing suitable methodology facilitated the researcher in attaining
specific path that facilitated in attaining authentic study findings (Emodi and Boo 2015). The
research methodology in this section will focus on analyzing the techniques that has been used in
analyzing the impact of oil and gas theft on the revenue loss and economy of the Niger Delta
region. The section has also focused on explaining the research onion, design, approach,
philosophy, data collection and data analysis along with ethical considerations in this research
(Oyewole 2018).

18IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
3.2. Research Onion
In selecting the research methods through the researchonion, the researcher can obtain
effective results from the research through accomplishing six different tasks. Moreover, the
research used in the research on impact of oil and gas theft on the revenue loss and economy of
Niger Delta region has facilitated in serving as an important role in using most popular research
tools within the research (Ogbuigwe 2018). In addition, the six layers or levels of the research
onion used is deemed to be directly related with the process and techniques used in research that
can be used by the researcher in attaining suitable findings ad implications. The research onion
indicated below has been employed for this study in order to ensure effective use of research
strategies approaches, philosophies and data analysis techniques for evaluating the ways in
which theft of oil and gas theft resulted in high revenue loss and degrading economy of Nigeria
(Umukoro 2018).
Figure 1: Research onion

19IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
(Source:Umukoro2018)
3.3. Research Design
The current research has focused on evaluating the impact of oil and gas theft in the
Niger Delta region resulting in loss of revenue and poor economy of Nigeria. Considering such
research problem, the current research focused on analyzing the detailed elaboration of the
factors contributing to oil and gas theft in oil companies of Niger Delta region (Simon, Akung
and Bassey 2014). Moreover, the reasechersfocused on exploring the ways in which revenue loss
and degradation of Nigerian economy took place through evaluating the intensity of illegal
bunkering of oil and gas in Niger Delta region.Focused on the same, the research has considered
implementing the descriptive research design for carrying out the overall research. The other
research designs are not observed to be suitable as it might fail to depict the reasons and issues
behind the research reason (Ufuoma and Omoruyi 2014). Descriptive research design is deemed
to be suitable for this research as it serves as a scientific method that involves explaining
characteristics of population which is to be studied. This research design has also facilitated in
explaining the research problem that offered researcher the opportunity to increase understanding
of detailed statistics related with oi and gas theft.
3.4. ResearchApproach
The current research has employed inductive research approach in analyzing the impact
of oil and gas theft on the loss of revenue and poor economic condition in the Niger Delta
regionNigeria (Gonzalez 2016). This research approach is deemed to be suitable for this research
for the reason that it facilitates in attaining evidence on the truth of the attained findings. As the
thematic research analysis was carried out in this study inductive approach is suitable with the
research process. Moreover, it has facilitated in inviting search for pattern from the observations

20IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
along with explanations development through pricing of theories or elaborations explained
within the previous researches (Mustapha and Ayodele 2017). Inductive research approach has
facilitated in enabling the reasechers to develop new set of theories and models after deciding the
outcomes gathered from the study. Moreover, this research approach facilitated the researcher in
recognizing the steps for performing the desired conducts of the research.
3.5. Research Philosophy
The recent research on impact of oil and gas theft in the Niger Delta region of Nigeria on
loss of revenue and economic condition has focused on employing interpretivism research
philosophy (Adishi and Hunga 2017). The researcher considered using this philosophy through
linking the theories and models discussed within the litteratrice view section in the recent
scenario. The policy of interpretivism is focused on realizing the human beings’ experiences.
Positivism philosophy facilitated the researcher in evaluating the effective research paradigm.
This philosophy is deemed to be suitable for this research because of epistemology, axiology and
ontology characteristics fulfilled by this philosophy (Oluduro and Oluduor 2015). Using this
philosophy has facilitated the researcher in interpreting the elements of the research that includes
social contractions like consciousness, language, instruments and shared meanings associated
with oil and gas theft issue in Niger Delta region.
3.6. Data Collection Method
In order to attain the set research objectives, secondary data formed the basis for data
collection, analysis along with interpretation (Omokhoa 2015). Data was collected for this
research by means of a comprehensive review of relevant literature on oil and gas theft issue in
Niger Delta region. The secondary data has been gathered from authentic journals, books,
company websites and Nigerian government sites. Such data collection is deemed to be

21IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
advantageous for the reason that it is easy to gather within a short timeframe and requires less
investment of time and expenses to gather such data (Simon 2016). Both qualitative and
quantitative secondary data has been gathered to analyze the past statistics on the trend of oil and
gas theft taking place in the Niger Delta region. Moreover, such data is gathered from the
specified sources based on the specific reasechers needs and to attain a suitable implication for
the Nigeran Government and oil and gas companies of Nigeria to deal with the identified
concern. Data will be analyzed with using relevant data from the dates of 5 to 10 years on illegal
oil bunkering and oil theft in Nigeria and its effect on national economy and companies
(Awofesoand Ogunne 2017).
3.7. Data Analysis Method
The data analysis technique that was employed in analyzing the impact of oil and gas
theft in the Niger Delta region resulting in revenue loss and downfall of the economy is thematic
analysis. Such analytical technique is used in this study in order to attain suitable conclusion on
the current study. In addition, use of thematic analysis has facilitated in maintaining transparency
along with ensuring better interpretation of composed secondary data(Collis and Hussey 2013).
Moreover, the qualitative data gathered through thematic analysis has been presented by means
of tables and charts that has facilitated in simplifying the interpretation of collected data.
Thematic analysis uses qualitativemethodology in exploring the complex process in indicating
the degree of transformation data into meaningful interpretation of the data gathered on the
factors and issues caused by oil and gas theft and bunkering in Niger Delta region(Collis and
Hussey 2013).
Thematic analysis is used in this study as it is best suitable ith the qualitative and
descriptive research nature. The thematic analysis was carried out by means of developing

22IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
necessary themes aligned with research objectives to addressing the aspects of the study.
Thematic analysis is used in this research for analyzing and recording vital patterns within the
data(Collis and Hussey 2013). The themes selected for the reasechers are explained under:
 Theme 1: To analyze the reasons behind illegal oil bunkering in Nigeria
 Theme 2: to analyze the economic impact of oil and gas theft in Niger Delta region
 Theme 3: To evaluate the steps that can be taken by the government in addressing the
spade of oil and gas theft in Niger Delta
 Theme 4: To analyze the way in which financial loss of revenue takes place as a result of
massive theft and vandalism
3.8. Ethical Considerations
In carrying out the current study, the researcher has followed suitable code of conduct in
carrying out tasks in the data collection process. The secondary data has been collected from
several valid along with authentic sources in order to make sure the reliability of the study
findings. As the research has employed thematic research, it has been made sure by the
reasechers that certain important ethical concerns have been taken into account including
anonymity and confidentiality of the research data gathered from secured government resources
(Zikmund, Babin, Carr and Griffin2013). In addition, the researcher has also ensured that the
study conducted on oil and as theft in the Niger delta region is the sole workof the reasechers and
proper acknowledgement is provided to the reasechers whose literature was considered during
the study. Moreover, the research ethics that is followed by the researcher includes minimizing
the risk of harm to the secured information gathered along with avoiding the deceptive practices
while the secondary research is being carried out(Zikmund, Babin, Carr and Griffin2013).

23IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
3.9. Summary
The research methodology in this section focused on analyzing the techniques that has
been used in analyzing the impact of oil and gas theft on the revenue loss ndecoomiy of the
Niger Delta region. It was gathered from this section that the research has considered
implementing the descriptive research design for carrying out the overall research. The other
research designs are not observed to be suitable as it might fail to depict the reasons and issues
behind the research reason. Moreover, the secondary data has been collected from several valid
along with authentic sources in order to make sure the reliability of the study findings.
4. Data Analysis
In order to attain suitable findings from the research in impact of oil and gas theft in the
Niger Delta region on the country’s company and revenue loss of the company’sthematic
analysis has been carried out in this section below:
4.1. Theme 1:
The figure below indicates the decreasing trend of Niger Delta oil reserves because of
theft in the Niger Delta region. From analysis of the gathered secondary data and from research
of Adekola et al. (2017) it has been gathered that there are several factors those have resulted in
the increasing condition of oil and gas vandalism in the region. The major reasons behind such
condition is deemed to be poor governance, increasing rate of unemployment, poverty along with
pervasive corruption along with the neglect of the Niger Delta region on monitoring the pipeline
oil spillages with disproportionate brunt of the negative impact of the negative impact of oil
exploration. Such reasons contributed to increasing vandalism in the area and in such condition

24IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
where the Nigerian economy went into recession along with being fragile within increasing
national debt, decreasing the condition of oil theft in Nigeria is considered as a national priority.
Figure 2: Decreasing Trend of Niger Delta Oil Reserves Due to Theft
(Source: Yeeles and Akporiaye 2016)
The figure below indicates the Niger Delta Crude oil production and disruption over the
span of five years because of the increase in the factors that are resulting in increased theft of oil
and vandalism in the region. It has been gathered from the facts provided by Adekola et al.
(2017) that the Nigerian government’s policies, legal along with institutional frameworks has
turned out to be incapable for over five years on dealing with revenue losses along with attending
to environmental damage holistically and sustainably.

25IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
Figure 3: Niger Delta Crude Oil Disruption and Production
(Source: Yeeles and Akporiaye 2016)
The figure below indicates that the increase in the unemployment rate in Nigeria which is
considered as the major reason for increased theft of oil from the Niger Delta region and piracy
from the sea waters. It has also been observed from the research carried out by Adekola et al.
(2017) that the government structure of the action has been incapable over years to provide better
chances for employment for the residents of Niger Delta region causing the residents of Nigeria
to steal oil and export them in exchange of money to run their livelihood.

26IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
Figure 4: Niger Delta Youth Unemployment Rate
(Source: Yeeles and Akporiaye 2016)
4.2. Theme 2:
The figure below indicates the economic condition of Niger Delta because of increasing
oil theft and illegal vandalism over the span of five years in the nation. In support of such data,
the research conducted by Mary Converse (2014)evidenced that crude oil theft has resulted in
increased threat to Nigerianeconomy as it has been revealed from the government sources that
the value of crude oil stolen is higher than the current combined allocations for the health and
education budget decided for the year 2018. Details of such report presented within the media
revealed that such budget was amount to N189.4 billion that translates to around 8.4% of the
anticipated value of losses from oil theftfor over two years. Moreover, dependence of several
local communities on such the primary industries for food and income a link has been observed
between the oil spills and disrupting of traditional livelihoods within the Niger Delta region.

27IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
Moreover, oil producers in Nigeria has come under intense pressure from small scale intentional
oil leaks for which they are observed to lose control of their operations with resulting in increase
of violence and oil theft becoming uncontrollable.
Figure 5: Economic Condition of Niger Delta Due to Theft of Oil Reserves
(Source: Okafor and Olaniyan 2017)
The figure below indicates the decreasing trend of Nigerian oil production over the span
of five years due to increasing oil theft and illegal bunkering in Nigeria. Supporting such
findings, the research of …………….also validated that the Nigerian fuel market is running at
loss with decrease in the domestic oil production and disrupted imports. Moreover, the Nigerian
domestic market is relatively underdeveloped with demand of only 385000 barrels each day and
because of weak economicrecovery the Nigerian oil producers are forced to reduce their oil
prices. Falling reserves of oil has disrupted the shut-in production of major oil corporations along
with disrupting the development of the region and hampering livelihood of the local

28IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
communities. Supporting such view, Yeeles and Akporiaye (2016) also elaborated that with
degrading economy of Nigeria along with low income, increased employment and poor living
facilities have triggered the anger of local communities on Niger Delta region because of which
they have adapted to live dependent on spilling oil pipelines to run their livelihood. Such
condition indicates poor standard of living, financial situation along with employment prospects
in Nigeria because of uncontrollable risk of oil theft in the nation.
Figure 6: Nigerian Oil Production and Reserves
(Source: Okafor and Olaniyan 2017)

29IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
4.3. Theme 3:
The table below indicates the loss in the revenue caused in major oil corporations
operating within the Niger Delta region because of increasing illegal vandalism and oil theft in
Nigeria. From the data revealed by Okafor and Olaniyan (2017) it has been gathered that as per
the records of “Nigerian National Petroleum Corporation (NNPC)” around N923.26 Million was
received as the loss in the crude oil and has sales. Moreover, around N11.786 Billion has been
spent on the repairs of pipelines that have affected earnings of the major oil corporations. The
NNPC also evidenced that the federation funding has been inadequate over the years, because of
sabotage caused by the militants along with stating that low prices of oil further worsened the
financial situation of the oil companies.
In addition, Okafor and Olaniyan (2017) have also provided relevant data in their
research that increasing oil theft and vandalism have continued to disrupt the value and put the
multinational oil companies like Shell and Chariot Oil and Gas Limited in a non-competitive
position in the oil industry. A total of 2817 vandalized points were recorded from the timeframe
of December 2013 to November 2017. For this reason, crudeoil and petroleum products losses
have continued to cost the NNPC long with Nigeria a huge amount of money. From analyzing
the data gathered from the table below it has also been evidenced that cumulative production
capability deferred due to shut in amounted to around 775000 barrels each day. The profit taking
grads of Nigerian Stock Exchange market capitalization is observed to be down by N46 Billion
at the end of 2017. Moreover, the sell-off persists as the stock market of Nigeria drops lower
recording loss from the major oil corporations of around 0.84%.
Nigerian Oil Theft
Value of the oil theft The anticipated yearly value of the stolen oil from

30IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
Nigeria is observed to be between $ 3 billion to $ 8
billion
Direct Casualties There have been an anticipated 1000 deaths every
year because of conflict taking place in Niger Delta
region. However, this might to be directly
associated with the oil theft.
Public expenses or loss related with oil theft The Nigerian government was anticipated to
experience huge loss of revenue that is worth
several billions of dollars. The Nigerian Petroleum
Corporation hasbeard around $ 2.3 Billion on the
pipeline security along with repairs in the duration
of 2010 to 2017.
Environmental revenue loss Due to an increasing trend of oil theft in the Niger
Delta region, there has been increased pollution
within water and soil that also have a drastic
secondary impact on livelihoods, human health,
foods and fuel stocks.
4.4. Theme 4:
To deal with the increasing oil theft condition in the Niger Delta region it has been
observed from the data from the government sources that the local and smaller firm participation
can result in positive reparations for the production of oil and gas the development of the smaller
fields are observed to be marginal. Supporting such findings, the research conducted by
Zikmund, Babin, Carr and Griffin (2013) evidenced that the government gas taken several

31IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
initiatives in developing the oil and gas industry of Niger Delta region to improved economy of
the nation along with improve financial position of the oil corporations operating within Nigeria.
In addition, it has also been evidenced that the Petroleum Industry Bill is considered to be
passed by the Nigerian government that can facilitate in increasing the participation of Nigerian
oil companies along with offering attractive economies for small and marginal field for smooth
operation of oil companies. Moreover, the government of Nigeria is also developing effective
initiatives to deal with oil theft situation in the Niger Delta region. The Government is also
dealingwith such issue through enforcement along with “Crude Oil FingerprintingInitiative” that
includes developing a special operational unit of nation’s security forces to safeguard the oil
installations in the Niger Delta region. Moreover, the Nigerian government has also responded to
such issue of increasing oil theft through implementing measures of technical sophistication
along with sophisticated networks that includes local elites, facilitators, and militant groups,
enhancing living standards of oil company workers along with bringing to work the military and
political officials. Moreover, such initiatives of the government included improving governance
structures in monitoring such illegal vandalism for controlling oil tanker hijacking.

32IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
Figure 7: Nigeria GDP Output and Projected Growth
(Source: Bryman and Bell 2015)
5. Findings and Discussion
5.1. Theme 1: To analyze the reasons behind illegal oil thefts on the Land and High sea
bunkering in Nigeria
From the statistical data analysis carried out in the section above it has been revealed that
there are several causes revealed to be existent within the Niger Delta region that has caused oil
theft and corruption those are explained under:
 Unemployment rate increase among the young consumers of in the Niger Delta region
 Poverty
 Increase in the criminalimpunity within Nigeria
 Neglect of the Niger Delta region by the multinational oil companies and the government
in Nigeria
 Poor process of prosecution
 Retentiveness of youth in the nation
 Collaboration among the oil bunkers and the national security agents
From the findings of the analysis it has been gathered that the “Queen Ladder Theory” is
applicable to the situation faced by the Niger Delta region(Zikmund, Babin, Carr and
Griffin2013). This theory was developed through havingan intention of explaining the functional

33IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
importance of organized crime as a major strategy for socioeconomic empowerment along with
social climbing. This theoreticalframework is majorly used in analyzing this type of crime based
reasechers and based on the oil theft issue observed in the Niger Delta region certain
assumptions have been proposed by this theory that is indicated below:
 Organized crime is an instrumental behavior or practice
 It is deemed to be an instrument of social climbing along with fame and socio-economic
development
 It also serves as a technique to gather building power and wealth
Though observing the assumptions of this theory, it can be stated that organized crime of
thieves in the context of illegal oil bunkering within Niger Delta region takes place where the
government’s ability to sanction and dictate abnormality and crime is weak and where the public
corruption is endemic and legitimating the livelihood opportunities are weak(Zikmund, Babin,
Carr and Griffin2013). In such situation, the insurances of getting involved in crime of oil theft
in the region is high and at the same time deterrence from the criminal living is low. From the
data analysis carried out and through observing the statistics presented in the section it can be
noted that the incidence of oil theft in Niger Delta region has been caused by increased
consideration of material aggrandizement at thedeterminant of advancement and wellbeing of the
individuals residing within Nigeria. This gradually worsened by the existing socio-economic
livelihood crisis taking place within the region.
Adishi and Hunga(2017)revealed that oil theft is conducted at various levels and
quantities and there are several methods in which the operations of oil theft is conducted in Niger
Delta of Nigeria. The most renowned method of stealing crude oil is through puncturing the

34IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
pipeline and through transferring the product from one place to another. Moreover, such theft
also takes place through tapping the point where oil has been punctured or ruptured. Adishi and
Hunga(2017)revealed that adding insecurity in certain areas of the Niger Delta region results in
accessibility of oil-purchased arms with illegal bunkering that contributes to a bigger fraction of
the region’s violent crime, armed robbery along with privacy and kidnapping. These reasechers
have also elaborated that to decrease the impact of such drastic effects of oil and
naturalgasbunkering the federal government must promptly be involved with the multinational
oil organizations to are on the modalities for installing wellheads, flow stations along with
effective export terminals that can ensure the oil quantity produces for measuring the quantity
lost to thieves and illegal bunkers (Oluduro and Oluduor 2015). oil and as theft operation take
place through placing the stolen products within smaller areas and driven straight within the sea
where it is loaded within huge barges in return of money along with weapons employed for fuel
violence and the last category solely about a spoilt system that is facilitated by an official
corruption.
5.2. Theme 2: Economic Perpetrators and Operators of These Thefts
Based on the findings gathered from the statistics mentioned in the data analysis section it
has been gathered that there have been drastic economic impacts from the oil theft of illegal
bunkering in the Niger Delta region from the perpetrators and operators of such thefts (Oluduro
and Oluduor 2015). The identified economic impacts are discussed below:
 Environmental degradation: It has been gathered from analysis of secondary data
gathered that indices related to oil theft and pipeline vandalism over the ten years span
has resulted in increased crude oil spillages and pollutions within the Niger Delta region.
This has drastically impacted the host communities of Nigeria’s vegetation farm lands,

35IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
drastically affecting means of livelihoods of individuals along with increasingly polluting
the rivers due to their major occupation within the Niger Delta region that is farming and
fishing(Oluduro and Oluduor 2015). These communitieshave suffered the challenges
related with poor means of livelihood that is taking place from environmental pollution
through oil spills taking place from oil theft. Such impact has also caused the government
and the multinationaloil companies of Nigeria to deal with wastage of their resources in
cleaning up the environment.
 Threat to regional security and peace:The secondary data analysis carried out has
revealed that the unemployment rate and youth restiveness within the Niger Delta region
has persuaded the youth to observe that the business of oil theft serves as an alternative
along with a highly lucrative venture(Adishi and Hunga 2017). This is for the reason that
there exists no other job that can make them attain fast income overnight. These young
population in Nigeria irrespectiveof their geo-political region of origin get recruited
within the activities of oil theft as a means of economic empowerment. In addition, most
of them get empowered with heavy arms that is used by them in perpetuating the violence
acct in district areas of the region(Adishi and Hunga 2017). Moreover, such illegal act of
oil theft is also supported by some of the corrupted politicians in order to attack their
political opponents or rig elections that increased the insecurity challenge in the Niger
Delta region and the nation at large. It is also important to gather rom the data analysis
section that the oil theft takes place in the high seas along with oil exports terminals and
thereby increasing oil theft activities of the sea pirates in the Niger Delta sea waters.
 Proliferation of arms: From analyzing the secondary data gathered from thegovernment
sources and previous reasechers that most of the oil thieves are involved in exchanging

36IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
crude oil stolen by them in exchange for heavy arms at the high sea (Adishi and Hunga
2017). On the other hand, other thieves steal oil in order to import the sophisticated arms
within he Niger Delta region with the major intention to use such arms and ammunitions
for counter attacks from any gang and the security agents or the military. Supporting such
findings from this research, Mustapha and Ayodele (2017)has revealed that oil theft in
Nigeria has been the major reason of violent conflict taking place within the region. Such
proliferation of small and heavy arms within Niger Delta region has increased insecurity
within Niger Delta area that has increased crimes of kidnaping and taking hostages.
 Illegalrefiningof oil along with third party interference serves as the major sources of
pollution and economic degradation in the Niger Delta region. third party interference
caused near about 90% of thenumber of spills that is more than 100 kilograms from the
“Shell Petroleum Development Company” of Nigeria in the year 2017(Mustapha and
Ayodele 2017). The data analysis carried out also revealed that there has been 70% of
approximate reduction of the overall oil supply volume from operational and theft spills
from major oil corporations operating in Nigeria over the past ten years duration. The
legal practitioner in Nigeria has challenged the labor centers to take into consideration the
case of vandalism and illegal bunkering to make sure that the funds from the theft are
recovered and are used for the benefit of the nation(Mustapha and Ayodele 2017).
5.3. Theme 3: Financial Loss of Revenue Takes Place as A Result of Massive Theft and
Vandalism
The data analysis section presented certain evidences gathered from the secondary
research and explained the ways in which the multinational oil companies operating in Niger
Delta region faced drastic revenue losses. It has been gathered from the research that the Nigeran

37IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
government losses took place for around 180000 barrels of crude oil each data that valued at over
$7 billion each year because of oil theft within the Niger Delta region(Simon, Akung and Bassey
2014). It was also gathered by the Public Affairs Manager, PPMC that the Nigerian region of
Niger Delta has dealt with loss of over N8 Billion on security for oil personnel along with
installations along with environmental clean-up taking place from the oil theft activities in Niger
Delta area between the tears from 2009 and 2012. In addition, NNPC has experienced an
expense of $ 2.3 billion on the repair of broken oil pipelines along ith wells by oil theft
machineries along with offering better installations of oil security(Simon, Akung and Bassey
2014). Both the government along with the multinational oil companies operating within the
Niger Delta region at every level with several levels in several state of Niger Delta. Moreover a
huge amount of resources has been sent in order to equip the state security agents in order to
secure the oil facilities along ith important personnel against the conducts of the oil thefts in
Niger Delta region. This also implies that that the money of the tax payers is drastically being
wasted along with the time estimated in security might have been employed to foster increased
development of the Niger Delta region majorly focusing on the area of physical and social
infrastructure in several regions of Nigeria(Simon, Akung and Bassey 2014).
Moreover, the data analysis carried out also explained that through vandalism, the oil
theft resulted in revenue loss of NNPC of around N 2.7bn in one month. In addition, it is also
observed that hostilities appear to have been quelled within the Niger Delta and the recent
reports that indicate the Nigerian economy is still paying the price. Consequently, the Nigerian
National Petroleum Corporation, NNPC reported that it has lost more than N12.754 billion dues
of theft of crude oil and petroleum products along with its vandalism over the ten years span
from 2007 to 2017(Zikmund, Babin, Carr and Griffin2013). The “MonthlyFinancial and

38IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
Operations Report” in November 2016 indicated that its N113.81 billion total earnings from the
domestic crude oil and gas sales has resulted in loss of N 11.786 billion in the pipeline repairs
and management in comparison to N12.34 billion in October 2016. It was also revealed from the
secondaryresearch explained in the it is recorded by NNPC that N923.26 million was recorded as
the lose faced through crude oil theft while the petroleum products losses decreased N45.315
million off from the earnings of NNPC(Zikmund, Babin, Carr and Griffin2013). To deal with the
revenue loss the federation funding is observed to be inadequate over the years majorly due to
the reason of sabotage orchestrated by the militants along with adding that low prices has further
degraded the situation of oil theft in Niger Delta region.
From the secondary data analysis carried out it has been evidenced that the spate of
vandalism is decreasing for the reason that the report indicated that 43 downstream pipeline
vandalized points were recorded in the November month in October 2016(Zikmund, Babin, Carr
and Griffin2013). This also explained that such situation of oil theft from the multinational oil
corporations operating within Niger Delta region has resulted in 78.92 percent decrease in
relation to 204 vandalized points in November 2017. As per the report represented by these oil
corporations of Nigeria, favorable business surrounding will result in the Nigeria
PetroleumDevelopment Company, NPDC to decrease or reduce the anticipated N20 billion
monetarylosses in revenue because of the pipeline sabotage(Zikmund, Babin, Carr and
Griffin2013).
5.4. Theme 4: Steps That Can Be Taken by The Government in Addressing the Spade of
Oil and Gas Theft in Niger Delta
From analyzing the secondary data gathered on the issue of oil theft in the Niger Delta
region, it has been gathered that several institutes are being taken by the government in

39IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
preventing and minimizing the spills caused by oil theft along with sabotage of all the facilities
of oil corporations in the Niger Delta area(Zikmund, Babin, Carr and Griffin2013). In addition, it
has also been evidenced that to deal with such incidences of oil theft in Nigeria because of the
third-party interference it is been made sure by the Nigerian government that the multinational
oil companies of Nigeria are making sure that the spills are detected and responded to as fast as
possible to control the issue of illegal bunkering. The reports published by Nigerian government
revealed that in the areas of oil corporations’ operations including the pipeline network, certain
sustained on-ground surveillance is necessary in making sure that the oil spills are detected and
deal ith on time. The government of Nigeria is also observed to take certain initiatives pf
developing regime of daily over-flights of the pipeline network areas in order to recognize the
new spill incidents or activities taking place within the Niger Delta region(Simon, Akung and
Bassey 2014). The data analysis section along with the explained statistics of government
initiatives taken in Nigeria has explained that the government has considered installing a state-
of-the-art high definition camera to a specialized helicopter that ai focused on improving the
surveillance of assets of major oil companies. Moreover, implementation of certain effective
anti-theft protection mechanisms on major infrastructure of the oil companies in Nigeria.
The government has also recorded that collaboration among the local community leaders,
traditional rulers and the state governments within the Niger Delta for implementing numerous
initiatives along with partnerships in order to increase the awareness on the negative impact of
crude oil theft along with illegal oil refining. Simon, Akung and Bassey (2014)examined in the
research that the federal government of Nigeria must focus on ensuring speedy development of
the Niger Delta region for pacifying its inhabitants for marginalization conducted over years. To
deal with the issue of oil and natural gas theft the government of Nigeria must consider offering

40IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
employment opportunities to all the youths of the region. For instance, community-based
pipeline surveillance along with the promotion of the alternative’slikelihoods through Shell’s
flagship youth entrepreneurshipprogram(Mustapha and Ayodele 2017). As per the Nigerian
government, the new fund is deemed to be overseen by the representatives of the people within
the region and the oil company are offered with an initiative to implement an expert device for
tracking uncontrollable spill of oil or excessive bunkering than estimated by the oil companies in
the region. NNRC provides with effective policy options for guiding the society of Nigeria and
the government in using their natural resources in order to make sure ofmaximum and
sustainable returns for all the citizens of Niger Delta region. Moreover, a technical committee
has also been set up by the Nigerian government in in looking after the aspects of the
implementation program(Mustapha and Ayodele 2017). This program has included actions to
enhance security of the oil pipelines along with infrastructure through boosting youth
empowerment in the oil producing regions along with increasing the commitment of oil
organizations in dischargingtheir corporate socialresponsibilities.
6. Conclusion
6.1. Conclusion
The aim of this current research was to carry out a critical analysis of the impact of oil
and theft in the Niger Delta of Nigeria. It was gathered from the paper that illegal oil bunkering
within Niger Delta region takes place where the government’s ability to sanction and dictate
abnormality and crime is weak and where the public corruption is endemic and legitimating the
livelihood opportunities are weak. In such situation, the insurances of getting involved in crime
of oil theft in the region is high and at the same time deterrence from the criminal living is low.

41IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
Moreover, it has also been revealed that the damage caused by the oil thieves turned out to be the
major reason for violent conflict within Niger Delta and are forcing several nations to shut the
pipelines down. This resulted in serious threat to national security as the nation greatly relies on
oil and gas exports for survival. It has also been revealed that an increase in the oil and gas theft
and illegal bunkering within the Niger Delta region is an economic crime against Nigeria state
and it undermines economic development strategies along with endangering social disorder.
Damage caused by the oil thieves turned out to be the major reason for violent conflict
within Niger Delta and are forcing several nations to shut the pipelines down. This resulted in
serious threat to national security as the nation greatly relies on oil and gas exports for survival.
Other than the nation’s economic loss, very less investment inshore production and exploration
along with illegal oil bunkering conflict has destabilized the Niger delta region. These reasechers
also explored that the violence perpetuated by the oil theft actors is threating the peace and
security of Niger Delta region is speeding steadily. As per the Nigerian government, the new
fund is deemed to be overseen by the representatives of the people within the region and the oil
company are offered with an initiative to implement an expert device for tracking uncontrollable
spill of oil or excessive bunkering than estimated by the oil companies in the region.
6.2. Linking with the Objectives
Objective 1: To analyze the reasons behind illegal oil bunkering in Nigeria
Illegal oil bunkering within Niger Delta region takes place where the government’s
ability to sanction and dictate abnormality and crime is weak and where the public corruption is
endemic and legitimating the livelihood opportunities are weak. In such situation, the insurances
of getting involved in crime of oil theft in the region is high and at the same time deterrence from

42IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
the criminal living is low. From the data analysis carried out and through observing the statistics
presented in the section it can be noted that the incidence of oil theft in Niger Delta region has
been caused by increased consideration of material aggrandizement at the determinant of
advancement and wellbeing of the individuals residing within Nigeria.
Objective 2: To analyze the economic impacts of oil theft in Niger Delta region
It has been gathered from analysis of secondary data gathered that indices related to oil
theft and pipeline vandalism over the ten years span has resulted in increased crude oil spillages
and pollutions within the Niger Delta region.The paper also revealed that illegal act of oil theft is
also supported by some of the corrupted politicians in order to attack their political opponents or
rig elections that increased the insecurity challenge in the Niger Delta region and the nation at
large.
Objective 3: To evaluate the steps that can be taken by the government in addressing the
spade of oil and gas theft in Niger Delta
The data analysis section presented certain evidences gathered from the secondary
research and explained the ways in which the multinational oil companies operating in Niger
Delta region faced drastic revenue losses. In addition, it has also been evidenced that to deal with
such incidences of oil theft in Nigeria because of the third-party interference it is been made sure
by the Nigerian government that the multinational oil companies of Nigeria are making sure that
the spills are detected and responded to as fast as possible to control the issue of illegal
bunkering.
Objective 4: To analyze the way in which financial loss of revenue takes place as a result of
massive theft and vandalism

43IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
The reports published by Nigerian government revealed that in the areas of oil
corporations’operations including the pipeline network, certain sustained on-ground surveillance
is necessary in making sure that the oil spills are detected and deal ith on time. The government
of Nigeria is also observed to take certain initiatives pf developing regime of daily over-flights of
the pipeline network areas in order to recognize the new spill incidents or activities taking place
within the Niger Delta region.
6.3. Future Research
The current research had the limitation of explaining the personal wealth accumulation
along with the criminal tendencies by the local and theinternational oil traders, security lapses
along with stakeholder’s negligence for the Niger Delta region to development of economy in the
Niger Delta region. Moreover, secondary research carried out has certain limitations regarding
full validity of the datagatheredfrom previous researches and website information. Focused on
the same, the future research will consider carrying out primary data analysis through conducting
statisticaltests on analyzing the intensity of impact caused by oil theft in the Niger Delta region.
Moreover, the future research will also focus on evaluating the conceptualization of oil theft,
corruption in Niger Delta region along with the domestic and export consumptions of oil
gathered trough theft. In addition, futureresearch will also consider explaining the factors such as
unemployment and poverty and weak government infrastructure that has resulted in oil theft and
illegal bunkering for offering suitable recommendations on the issue.
7. Recommendations
Based on the findings of the researchit has been gathered that there are drastic economic
and revenue loss impacts caused from illegal oil bunkering or oil theft taking place in the Niger

44IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
Delta region. Based on the findings in the factors causing such issue in Nigeria certain effective
recommendations have been proposed below those are deemed to deal with such situation in
improving the country’ economy alongwith profitability of the local and international oil
companies operating in the nation. The proposed recommendations explained below:
 A proactive approach is recommended in dealing with the issue of oil and gas theft along
ith pipeline vandalism through involving important stakeholders such as security forces
of the Nigerian government along with important state governments. Moreover, the
authoritative body like “Regional Development Committee” within the international
memorandum of understanding along with a community based multi-stakeholder
participatory partnership model is vital to be implemented for the Nigerian community
engagement along with ensuring sustainability development within the operational areas
of oil and gas drilling operations.
 The Nigerian community must consider developing platform that will be considered as
Community pipeline and facilities surveillance program with better governance that can
also serve as a model for improving the condition of fighting against oil theft along with
pipeline sabotage. In addition, improving multi-stakeholder partnerships, collaboration
along with providing with sustainable social license by the Nigerian government for the
oil and gas operations can decrease the economic and revenue loss impacts caused by oil
and as theft in Niger Delta region.
 Technical safeguards- The establishment of technical safeguards as a part of pipe covers
along with burying them within the grounds against the oil and gas theft in Niger Delta
region which can turn out to be an alternative solution. In addition, it is also expensive
but is deemed to be quite effective as it might hinder access of bunkers to the oil. In

45IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
addition, implementation of technical safeguards can deal with the symptoms identified
in the issue and facilitates in dealing with them.
 Investment within development- As examined in the research findings and in the
literature review, because of the situation faced by Nigeria regarding absence of
employment opportunities, a huge number of young men turn to bunkering for lack of
such alternative. This can serve as an effective solution that can increasingly limit the
chances of illegal conducts of oil theft within the oil and gas industry of the Niger Delta
region. This can facilitate in addressing the major issue through investing within the
development opportunities which needs the skills and capabilities of bunkers. Through
developing suitable legal alternatives in the manner of job opportunities compatible with
their set of skills because of which illegal activities of oil theft can decrease. For
example, investment within the domestic refineries might facilitate in developing a job
pool for the bunkers along with decreasing the nation’s need for importing fuel. This
however needs an increased commitment from the government long with political
support in dealing with the situation of oil theft and illegal bunkering in Niger Delta
region.
 To deal ith the issue of illegal bunkering and oil theft in the Niger Delta region, it has
been recommended to assemble those have expressed a will to deal with the concern in
generating international disclosure and begin to develop a global disclosure and begin to
develop a global disclosure and begin to develop a global network of key stakeholders on
which to develop momentum and applying pressure to highly reluctant parties. The
government requires to mobilize more forces in order to protect and monitor oil
company’s infrastructure all through the Niger Delta region. Moreover, theNigerian

46IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
government is also recommended to focus their attention on enhancing the attractiveness
of investmentwithin the local oil and gas sector with attaining necessary positive force
from the military that is important to enhance security and protection of vital
infrastructure.
 Certain recommendations have also provided to the oil companies and he Nigerian
government to analyze the impact of oil and gas industry from the viewpoint of local
community with the potential of collection viewpoint from the residents of Niger Delta
region in analyzing the major issues faced by the community and the economy in order to
address the source and causes of oil theft. It is also recommended that certain measures
and multidimensional approach is required to deal with the issue of oil theft within the
region.
 The issue of oil theft in Niger Delta region must be made a public interest and the case
must be explained to the general public regarding the fact that illicit downstream
hydrocarbons activates have both known as well as potential negative impact on their
lives for instance the economic, security along ith environmental implications so that they
ca develop an appetite for action on behalf of the leaders.
8. Reflection
From carrying out research on impact of oil and gas theft and bunkering on the economy
of Niger Delta region have attained an increased understanding on the fact that illegal oil
bunkering in Niger delta has caused drastic losses for the oil and gas companies operating within
the region. Moreover, through carrying out a thematic analysis ishaving attained knowledge on
previous reasechers on phenomenal crime along with the attendant consequences it has caused to
the multinational nations along with the societies within Niger Delta region. Through caring out

47IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
this research I was also able to offer a contextual explanation on the Nigeria’s political economy,
society along with the associated histories on revenue losses through oil theft. In this study I
considered carrying out comparison regarding the recent estimation of the illegal oil bunkering
history over 5 to 10 years before developing a case for the research. Conclusively, I have also
gathered a funding through carrying out the thematic analysis that oil theft offenses were caused
by the ocean-going vessels between the decided years. In addition, I have gathered from the
study that certain valuable recommendations are developed focused on public and picograms that
can facilitate in decreasing the oil theft in Niger Delta region. From the current study I have
realized that there are certain limitations in addressing needs for evidence needed fir
policymaking along with implementation to drastically decrease illegal oil bunkering within the
Niger Delta region that I consider to focus on in my next research.
From conducing the current research, I have attained a detailed knowledge on the need to
mention the concerns of the government related with national oil revenue generation,
infrastructural development investment within several parts of Nigeria. Focused on the outcomes
of this research I have realized that I the future research I need to evaluate the histories of fiscal
regimes, the political economies of commissions of enquires set up to analyze along with
recommending manners in dealing with multifaceted development challenges of the Niger Delta
after the era of British Colonialism. I have also learned that the cost of illegal oil bunkering to
the Nigerian government in terms of the fortified revenue that has recently been anticipated over
a quarter of its yearly national budget. I have gathered from the research that oil companies are
willing to impose certain standards concerning monitoring along with monitoring of facilities
and a considerable amount regarding fuel is being stolen and how much is actually being taken.
In addition, from carrying out research on the research topic I have gathered a derailed

48IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
understanding on the fact that there is a connection among the oil theft actors in these nations
along with international criminal networks that traffic in weapons, humans, natural resources,
narcotics and cultural property. Moreover, the research has also cleared my understanding on the
use of suitable research methodology techniques that can facilitate in gathering constructive
findings for offering better managerial implications on dealing with the concern of revenue loss
and economy downfall because of illegal oil bunkering in Nigeria.

49IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
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