Page 10 - Nigeria one mag 4 edition en

Nigeria’s Energy Security Predicament

poverty and rising levels of inequality at an all-time high
for the Nigerian youth, Nigeria energy security has become
an avenue for illicit hydrocarbon trading and a source of
employment for the youth in the suburban and rural areas.
This provides the energy supply for the local communities’
daily needs. Unfortunately, to do this effectively, they
sabotage the oil pipeline infrastructure, Pipeline vandalism
and crude oil theft has become rampant and the
government is finding it difficult to address the issue.
In recent times, several efforts have been taken by
government to address the issue of crude oil theft and
vandalism of the pipelines. The security agencies have
intensified the monitoring of the water ways, and the
borders, where some limited successes have been attained
with the arrest of the culprits, discovery of illegal refineries
and stolen crude. Furthermore, the Nigerian National
Transmission of electricity, illustrative image
Petroleum Company has designed an information
Nigeria is one country with enormous amount of oil technology mobile application that can be installed on
and gas deposits that if harnessed properly is capable phones. The mobile app is meant to enable end users
of meeting the global energy needs. With the report incidents of oil theft using mobile phones. And
worsening Russia/Ukraine crisis, the energy crisis has more recently, an ex-militant has been awarded the crude
been further exacerbated across the globe and as a oil security pipeline contract targeted at tackling the oil
theft problem. While these modest initiatives have helped
result there is severe supply shortage of fossil fuels in some way, the problem is yet to be resolved.
and soaring oil and gas prices in a very volatile energy In comparison to the growth of armed insurrection and
market. Russia a leading exporter of oil and gas in
Europe has intentionally cut the supplies of oil and conflicts in the Niger Delta, crude oil theft continues
dispossesses the Nigerian government of crucial
gas in the region. In so doing, it has created a severe revenue streams and energy sources, consequently
energy crisis that Nigeria should have been in a diminishing foreign investor confidence. The spate of
position to take advantage of, however because of the
internal security challenges, Nigeria has failed to rise crude oil theft was worsened by a surge in oil prices, as
up to the opportunities created by the energy crisis in it rose above $110, at this point the Nigerian energy
market became very profitable and attracted young
Europe. teeming youths into the energy black market. The
The issue of insurgency in Northern and Southern
Nigeria and the internal security challenges have activities in the illegal market can be classified into five
continued to affect the productivity and performance main categories of operation: small-scale crude oil theft
and illegal local refining; large-scale illegal bunkering
of the oil and gas sector. To make matters worse, the in the oil field; oil tanker hijackings; theft from fuel
following issues have also affected the energy security
problem: rampant embezzlement of public funds, trucks and theft at export terminals.
As a result of the Gulf of Guinea being fairly shallow,
minimal incentive for foreign investors to participate
Nigerian offshore drilling sites, oil tankers and terminals
in the energy industry, lack of energy infrastructure are prone to attacks from pirates – these attacks tend to be
and the under utilization of massive and vast energy quite successful as a result of the inability of the
resources. The energy security problem is much worse government to provide adequate security in the water ways.
than it seems, as despite being one of the world’s So far, it is estimated that the total volume of crude oil
largest producers of oil and gas in the world, Nigeria stolen from Nigerian energy terminals is 1.2 million bpd,
remains reliant on the importation of refined refined in various hidden locations in the mangrove
petroleum products to provide energy demands for its regions of the Niger Delta region.
teeming population. With the issue of unemployment,

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