The Untold Opportunity Cost of Oil Theft In Nigeria
By Gideon Osaka
The recent revelation by the Chief of Training and Operations, CTOPS, Nigeria Navy, Rear Admiral Mackson Kadiri that the nation lost over 277,040, barrels of crude oil, costing about N11.08 billion through the activities of oil thieves, also known as illegal oil bunkering in 2018, may not have come to Nigerians as a surprise.
Nigerians have been used to similar stories of oil theft, pipeline vandalism, illegal refineries, illegal bunkering, etc. However, not many people have cared to know the opportunity cost of such losses to both the country and the citizenry. Valuechain investigation shows that N11.08 billion can make a lot of positive impact in the lives of Nigerians. Specifically, that amount will go a long way in removing Nigeria from its unenviable record of being the world’s poverty capital, if properly channeled into projects that are dear to the people. The huge amount can provide not less than 550 primary health care centres, at N20 million per project, across the federation, especially now that many communities in the rural areas complain of inadequate health care facilities in their domain. For example, In Ikpeze, a community in Ideato North Local Government Area, a primary health care centre, which is one of the constituency projects of Greg Mbadiwe, was completed at the cost of N20 million, though the project is yet to be commissioned.
The sum of N11.08 billion can as well provide conducive learning environment in Nigerian universities where dearth of infrastructure is the order of the day. The amount can take of not less than 36 lecture halls and complexes in the universities at the cost of N300 million each. The Aliko Dangote School of Business complex at the University of Ibadan readily comes to mind. Mid 2018, business mogul, Aliko Dangote donated a N300 million School of Business complex to the University of Ibadan to encourage the training of entrepreneurs that would change the nation’s economy and drive growth and development. Similarly, the sum of N11.08 billion can provide not less than 1,100 blocks of six classrooms at the cost of N10 million per block, in primary schools across the country, especially now that many pupils in different parts of the country take their lessons under trees. It took a town union, Amuzi Progressive Union, APU, United States of America Chapter, the sum of N10 million, to build a block of six classrooms at their Central School Amuzi, in Ahiazu Mbaise, Local Government Area, Imo State, to alleviate the shortage of conducive learning environment in their community.
The aforementioned scenarios no doubt point to the fact that oil theft, illegal crude refining and bunkering and all forms of economic sabotage are a disservice and threat to the economic survival of Nigeria. Speaking during the Nigerian Navy First Quarter Media Dialogue in Abuja, its Chief of Training and Operations, CTOPS, Rear Admiral Mackson Kadiri, said that N11.08 billion was lost to maritime crimes, which he noted, included illegal oil refining and theft of other products. Kadiri, who noted that illegal refining was a major threat to Nigeria’s maritime environment, also stated that the activation of Operation Sweep by the service paid off as according to him, “in 2017, a total of 1,315 illegal refining sites were destroyed and in 2018, 637 were destroyed. “Another threat to Nigerian maritime environment is illegal refining of crude oil. In response to this, in 2016, the Nigerian Navy activated what we call Operation River Sweep which is aimed at combating crude oil theft and illegal refining activities. “In 2017, a total of 1,315 illegal refining sites were destroyed and in 2018,only 637 only were destroyed, “he said. The Navy, according to Kadiri, also lost of 277, 040 barrels of crude oil, 23.1 million litres of automated gas oil, AGO, 212, 610 litres of premium motor spirit, PMS, and 1.2 million litres of dual purpose kerosene, DPK, to vandals and oil thieves.
