Nigeria’s Oil Theft Epidemic

7 Jun 2017   Nigeria

Although crude oil theft has long been the subject of intense media attention in Nigeria, the downstream theft of hydrocarbons has remained under the radar. Despite this, downstream hydrocarbon theft is big business in Nigeria, Africa’s largest oil producer. In 2015, the petroleum sector accounted for approximately 51 percent of the federal government’s income and more than 90 percent of export earnings. According U.S. Department of Commerce data published in February 2017, it also accounted for between 10-12 percent of Nigeria’s GDP. As global oil prices rose above $100 a barrel in the early 2000s, the theft of oil became a very lucrative business. Furthermore, due to a conspicuous lack of youth employment in the region, many of the Niger Delta indigenes (particularly young men) have turned to the illicit hydrocarbon trade (i.e. small-scale tapping of crude oil, petroleum theft / smuggling and artisanal refining) as a source of […]

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