The President of the Nigerian Bar Association (NBA), Mazi Afam Osigwe, SAN, has advised the government to compensate landowners in oil-producing areas, suggesting that this could reduce the appeal of oil theft.
Mazi Afam proposed this model of community involvement as part of the solution to oil theft, according to a statement on the NBA website on Tuesday.
According to him, “Compensating landowners in oil-producing areas could align local community interests with national priorities, reducing the appeal of oil theft.”
NBA seeks reforms and transparency in oil and gas sector
Osigwe called for reforms that empower communities to protect their resources, advocating that compensation structures would encourage local stakeholders to actively prevent theft.
“Ultimately, crude oil theft is not just an issue of enforcement or policy—it’s a problem of leadership, transparency, and accountability,” he said.
- According to the statement, Osigwe, who spoke at the recent Nigerian Bar Association (NBA) National Executive Council meeting in Enugu, urged the Nigerian government to take decisive action against the rampant issue of oil theft, a crisis that, he argues, has far-reaching implications for the nation’s economy, politics, and social fabric.
- “Oil theft in Nigeria is not just the loss of a valuable resource but a symptom of deeper issues in leadership and governance.” Despite Nigeria’s status as a major oil producer, billions of dollars are lost each year to illegal oil siphoning, he said.
- The NBA President stated that while a well-connected few benefit, ordinary Nigerians face worsening poverty and increased distrust toward leadership, as stolen oil wealth perpetuates cycles of corruption and inequality, undermining any hope for a fairer society.
- “This ongoing crisis fosters disillusionment and widens social divides, placing Nigeria’s aspirations for an equitable future even further out of reach,” he added.
- He stressed that allegations that some government officials, including security agencies, may be complicit in facilitating oil theft should not be taken lightly, adding that “videos allegedly showing Nigerian Navy vessels protecting oil theft operations raise concerns about collusion.”
- He stated that there is an urgent need for accountability and transparent investigations of oil theft in Nigeria, lending his voice to widespread calls for the sanitization of the oil sector.
Backstory
In June 2024, the Nigerian National Petroleum Company (NNPC) Ltd reported a total of 400 incidents of crude oil theft in just one week.
- This was according to the company’s weekly program, “Energy and You,” which detailed incidents such as illegal refineries, illegal connections, vandalism, oil spills, illegal storage locations, and others.
- According to the company, during the week between June 15 and 21, 2024, there were 165 cases of illegal refineries, 69 cases of illegal connections, 15 cases of vandalism, 8 incidents of oil spills, 19 cases of illegal storage locations, and 74 instances of vessel AIS infractions, among others.
- The NNPC noted that these incidents were reported by various companies and security agencies across the Niger Delta, including Tantitta Security Ltd., Pipeline Infrastructure Nigeria Limited (PINL), SPDC, NNPC Command and Control Centre, Maton Engineering, government security agencies, and others.
Furthermore, the NNPC reported that the bulk of the 400 incidents recorded during the week occurred in the Western region of Rivers and Bayelsa states, with 265 incidents.