Massive Oil Theft Scandals Bleeding Nigeria's Economy

The Nigerian National Petroleum Corporation (NNPC) has disclosed that Nigeria is losing 200,000 barrels of crude oil a day because of theft and vandalism.

NNPC head Mele Kyari accused churches, mosques, security agencies, as well as communities where pipelines pass through, that they're involved in pipeline vandalism and theft of petroleum products. Kyari said authorities are trying to address the problem but added that theft is difficult to stop. He said up to 95% of Nigeria's oil produced at the Bonny Terminal was being stolen.

According to Premium Times, the cartel behind this multi-billion-dollar illicit trade has been a nemesis of every regime in Nigeria. It is not a new problem. Chatham House, a think-tank based in the United Kingdom, noted in 2014 that the theft is "on an industrial scale", and engineered by "politicians, military officers, militants, oil industry personnel, oil traders, and communities".

In a bid to put a stop to crude oil theft in Nigeria, authorities in August  launched a mobile app, Crude Theft Monitoring Applications, for reporting incidents and rewarding whistleblowers. The mobile platform was created for members of host communities in oil-rich regions, to enable early reporting of incidents and spur immediate action from relevant security and government authorities.