BUSINESS
Confronting The Menace Of Oil Theft
By Benjamin Obaigbena
It is a surprise that Nigeria has just woken up from its heavy inertia to know that the country is losing substantial volume of crude oil to oil theft and bunkering. These activities are as old as the oil industry.
Nigeria cannot shy away from the truth or claim ignorance of the astronomical volume of oil theft for the past 50 years.
It deliberately let loose the baby tiger into the wild to mature to a monstrous size and sophistication to evade being caught or detected in the act for several years.There is a common sense that anywhere in the world where criminals are never caught or brought to justice for a long time, the government agents are directly involved or a cartel with powerful links to high profile politicians in government protecting the common interests of both parties is involved.
The world is very familiar with this phenomenon as we always see in mafia movie plots. You may go to church everyday and twice on Sundays, it does not to change the way of this world because this world is not a Holy place but a hotbed for intimidation, victimization and terrorism garnished with condiments of betrayal, greed and corruption.The unprecedented economic consequences of the immense oil theft has left most serious thinking business men and high value politicians to ponder in their silent moment saying “What Have We Done to Get to this State of Putrescence?”
It is not that nothing was done in the past. Actually, in year 2000 NNPC made a very innovative and successful strategy to combat corruption at the PPMC depots nationwide, reduced pipeline vandalisation and smuggling of petroleum products to the neighboring countries.
Let me rewind. A few years back, NNPC was fighting this battle alone especially the theft through pipeline vandalisation for crude and finished products along system E and 2E NNPC pipelines. The depot pumping station may hardly know the conditions along the pipelines but a receiving depot may notice a drop in pumping pressure (signaling a suspected line break). At this stage it is impossible to physically inspect hundreds of kilometers of pipeline to detect the exact spot but have to patiently wait for a report from the affected community.
Early detection of pipeline disruption was not possible at that time and may still be so today. In the past it took four to seven days to locate a vandalized spot through the effort of good Samaritans who took upon themselves to travel long distances to the nearest pipeline depot to report a case of pipeline rupture from either failed integrity of highly corroded pipes or from vandalization. On receiving such reports , NNPC would mobilize MOPOL with selected engineers to the location for the repairs of the damaged line.
In the early 2000, NNPC mobilized military and MOPOL to assist to curb the menace but it was later discovered they were part of the problems too. It was nightmare for NNPC. There was a proposal to involve the local communities to constantly monitor the safety of the pipelines passing through their communities in return for monthly payout for work well done. In this scenario, you cannot rely too much on human beings where there is exchange of money as a reward. The highest bidder becomes the master of the business and immediate change of loyalty.
In 1994, a think tank of NNPC then, the Consultancy Services Unit (CSU) based in Lagos proposed the use of technology to monitor the distribution of Crude and Product lines using the principles of TELEMETRY/ SCADA where NNPC could monitor real time distribution activities of the pipelines along the country’s arteries of pipeline network. Any vandalization or pipeline break along the distribution lines is instantly detected with a telltale blinking lights or audible alarm displaying the coordinates of the location on the screen. An SOS signal is immediately dispatched to the nearest military base (Airforce, Navy or Army or combined team) for immediate dispatch of anti-terror personnel to swoop the area and contain the menace.
Response time would be such that the vandals would not have enough time to inflict maximum damage. This idea was muted at the presentation venue and did not get to top management of NNPC at that time because of the associated high cost to deploy such technology. That costly decision to mute the idea did not consider the long term cost- benefit implications. If that technology was deployed at that material time, the country would have saved more than $20bn or more to date.
Apart from the long term cost saving, the technological experience in managing the pipeline surveillance and security over the years would have been extended to our railway and road networks for same purpose.
This 1995 technology has advanced to modern and faster technology with many adds on (e.g. use of HD video cameras to capture footage needed in identifying and persecuting the criminal bunch in court, SMS, long distance drones, cloud storage, satellites, etc.).It is still not too late if we prioritise the need to deploy this technology. The money to acquire this technology can be generated if we can significantly reduce the huge wastages from the three tiers of government which are too numerous to mention here. The government can reengineer its processes to save cost and improve efficiency in delivery of their goals.
In 201, the GULF OF GUINEA ENERGY SECURITY STRATEGIC (GGESS) INITIATIVE was interested in the curbing of Oil theft in Nigeria. The UK Government (Foreign & Commonwealth Office – FCO) offered technical assistance to address the problem of illegally obtained (stolen) crude oils in the Niger Delta. The FCO engaged and funded University of Plymouth (UoP) to develop techniques capable of resolving the problem. The Federal Government of Nigeria directed NNPC to join in the initiative.
NNPC commissioned its roburst Research & Development Division based in Port Harcourt to work with University of Plymouth, UK on identification of Nigerian Crude anywhere in the world which will discourage theft of Nigerian crude. FINGERPRITING TECHNOLOGY is one of the methods considered to address this menace. Crude Oil fingerprinting ( like Crude Oil signature) is an analytical technique to identify key biomarkers in CRUDE or its PRODUCTS or we can call it Hydrocarbon Forensic Geochemistry.
The basic principle of the technique is that Crude Oil from different reservoirs have its unique fingerprint and information could be used for Oil Spill identification, source identification of crude, identification of formations that are actively producing, solve production allocation problems.
At the end of the day, the fingerprint of most Nigerian crude was almost completed and further works were necessary to identify Nigerian crude from a mixture (comingling) with other foreign crudes. The challenge was the immediate acquisition of more sophisticated analytical equipment to complete the investigation. NNPC R&D division made a presentation on this study (as promising tool to stop stealing Nigerian Crudes for easy detection anywhere in the world) to the office of Hon. Minister of Petroleum in 2013. A promise was made by the office to release $350,000 for immediate purchase of high resolution time-of flight (TOF) mass spectorometers (GC-GC-TOF-MS) and gas chromatography combustion isotope ratio mass spectrometry (GC-C-IRMS).
The purchase of the equipment did not see the light of the day and that was the constraint to conclude the high end research to establish a base to identify Nigerian stolen crude anywhere on this planet. It is good to let Nigerians know that the NNPC R&D division was at the time (and may be till now) the most equipped laboratory in African continent with developed capabilities to carry out many complex Oil and Gas studies that were being done in overseas saving several millions of dollars. By 2013, they had developed capabilities to study and advice government on oil pollution, atmospheric pollution, specialized core analyses, complete crude oil assay, advanced geochemistry, catalysis studies for the refineries, gas utilization studies, enhanced oil recovery etc.
If the government means business, to stop the Oil Theft it should invite NNPC R&D division, Nigeria Upstream Petroleum Regulatory Commission, Multinational and National oil companies to meet and come up with solutions to put a final STOP to the old problem that has wrecked the nation below its productive organs of survival. The Oil Theft can be decimated through combine use of Advanced Warning and Detection Technology, Policy and Judiciary. The local vigilante group can be a useful catalyst in this drive for intelligence surveillance and information gathering. It is long overdue to overhaul the security of our national asset or we are gradually preparing a ground breaking recipe for self-implosion.
For the public knowledge, NNPC Research and Development outfit was set up at the same time with NNPC via the Federal Government April 1977 ACT No. 33. Most times when a war or a battle is won, nobody hears about those intellectuals and intelligent community that worked 24/7 behind the scene to support and enhance the outcome of the victory. It is now time for the federal government to wake up, make an early morning call to challenge and push the intellectual community of our great nation to start solving national problems through aggressive research and innovation. No Nation on this planet thrive in this highly competitive age without a solid foundation in Pure and Applied Research.– Mr. Obaigbena is a retired Group General Manager in the NNPC Research & Development Division.
Chairman, Nigerian Exchange Group (NGX), Dr Umaru Kwairanga, said ongoing regulatory reforms are positioning țhe nation’s capital market to attract more investments and boost investor confidence.
Kwairanga was quoted in a statement on Sunday in Lagos to have said this during the ongoing 2025 Capital Market Correspondents Association of Nigeria (CAMCAN) Workshop.
The workshop had the heme, “Regulatory Reforms: ISA 2025 and Nigeria’s Investment Climate.
”The NGX Chairman noted that the Investment and Securities Act (ISA) 2025 marked a major step in improving market governance and investor protection.
According to him, the reforms represented structural changes aimed at modernising the market and attracting deeper investment flows.
“With the recent reforms encapsulated in the Investment and Securities Act (ISA) 2025, Nigeria has entered a pivotal phase in strengthening market governance, boosting investor protection, and enhancing overall market competitiveness.
“These reforms are not merely regulatory updates; they are foundational shifts designed to modernise our capital market architecture, attract deeper pools of capital, and position Nigeria as a top-tier investment destination within Africa and globally.
“As we navigate the complexities and opportunities presented by these reforms, your role as market media stakeholders becomes even more critical,” he said.
He said that the Exchange remained committed to supporting reforms that deepen transparency and broaden market participation.
He highlighted NGX Invest as a major innovation designed to simplify public offers and rights issues through digital channels.
Kwairanga said the platform had enabled millions of investors to participate directly in capital-raising activities.
He explained that NGX Invest had improved transparency, strengthened compliance and enhanced efficiency within the primary market.
Kwairanga said these efforts aligned with ISA 2025, which prioritises digital inclusion, operational efficiency and improved investor confidence.
“None of these efforts can thrive without credible and informed communication, and this is where the members of CAMCAN, remain indispensable.
“As journalists and correspondents covering the capital market, you act as a bridge between policy, market activity, and the investing public.
“Your work ensures that reforms are understood, market developments are accurately reported, and public trust is maintained. In a world increasingly challenged by misinformation, your role in delivering timely, factual, and contextual reporting is more vital than ever.
“I therefore charge you to continue upholding the highest standards of professionalism, accuracy and integrity.
“Your contributions help shape investor perception, support regulatory transparency, and ultimately strengthen the Nigerian capital market,” he said.
The African Export-Import Bank (Afreximbank) said digital transformation is critical to unlocking trade and investment potential under the African Continental Free Trade Area (AfCFTA).
Dr Yemi Kale, Group Chief Economist and Managing Director, Research, Afreximbank, stated this at an engagement event on “Unlocking Nigeria’s Trade and Investment Potential Through Digital Innovation and the Abuja Africa Trade Centre (AATC)” on Thursday in Abuja.
Kale said the AfCFTA had created the world’s largest new trading bloc, representing a unified market of over 1.
3 billion people and a combined GDP of more than 3.4 trillion dollars.“This integration goes beyond a symbolic milestone.
“It is a strategic platform capable of redefining how African economies produce, trade and compete in a rapidly changing global economy,” he said.
He noted that regional integration presented a once-in-a-generation opportunity to expand value chains, reduce dependence on primary commodities, accelerate industrialisation and strengthen Africa’s position in global markets.
Kale, however, expressed concern that intra-African trade still averages between 15 and 18 per cent, compared with 60 per cent in Europe and 40 per cent in Asia.
He identified market fragmentation, high logistics costs, gaps in trade data and cross-border payment challenges as factors limiting trade growth across the continent.
“If Africa must rise to its true economic stature, we must confront these obstacles with clarity, urgency and innovation.
“We must do so using one of the most powerful accelerators available to us and that is digital transformation.”
He explained that digital technologies such as end-to-end supply chain systems, automated customs services, e-commerce platforms, AI-driven market intelligence and digital payments were changing the structure of global trade.
Kale cited Rwanda’s digital single-window model and the growth of mobile money platforms as evidence of successful innovation
He noted that Afreximbank’s Pan-African Payment and Settlement System (PAPSS) was projected to save the continent billions in currency conversion costs.
According to him, digital innovation supports small and medium-sized businesses, including young entrepreneurs who can now access wider markets using online platforms.
He said that Nigeria’s large youth population gave the country a strategic advantage to lead Africa’s next phase of digitally-enabled trade.
“With 65 per cent of Nigeria’s population under 25, our young innovators are creating solutions, founding start-ups and shaping new industries.
“Strengthening skills, regulation, finance and collaboration will accelerate this impact,” he said.
He said Afreximbank was supporting this growth through the African Trade Gateway (ATG), trade intelligence services, and the AfCFTA Adjustment Fund among other initiatives.
“The ATG integrates trade information, due diligence, secure payments, and market insights, which are precisely the tools required for African businesses to compete effectively in an integrated continental market.
“It is, therefore, encouraging that Nigeria has taken a leadership role in advancing these priorities.”
Kale added that the Abuja Afreximbank Africa Trade Centre (AATC) represented the bank’s commitment to modernise trade by providing facilities that integrate information services, exhibition spaces, a business hotel and access to digital trade tools.
According to him, the centre is the first in a network of one-stop trade hubs being developed across Africa and the diaspora.
Kale said the AATC would help businesses access financing, partners, market intelligence, logistics support and technology services within a single space, reducing barriers and transaction costs.
“This building is more than a physical structure. It represents a catalytic platform for integration, innovation and investment,” he said.
He urged stakeholders to work together to drive digital transformation and build a continent where entrepreneurs can compete globally.
“This is not a distant dream. It is a future within our reach if we embrace innovation and collaboration,” he said.
Participants at the event were shown a live demonstration of Afreximbank’s Trade Intelligence Solutions- ATG and TRADAR and explored the role of AATCs in promoting trade and investment.
The event brought together financial institutions, trade organisations, investors and business owners.
The Federal Government, through the Kano State Special Agro-Processing Zone (SAPZ) Programme in partnership with IFAD, has empowered 9,870 rice farmers in Kano with climate-resilient inputs and modern rice production technologies.
This was contained in a statement issued by the SAPZ Knowledge Management and Communication Officer, Rabi Mustapha.
The State Project Coordinator, Aminu Iliyasu, disclosed this on Sunday during the Farmers Field Day at Chiromawa Garin Babba Cluster in Garun Malam Local Government Area.
He said the exercise was organised to expose the farmers to Science-based and practical solutions capable of enhancing yields, improving food security, and boosting rural livelihoods.
Iliyasu described the field day as a celebration of knowledge, innovation and the resilience of smallholder farmers.
He explained that the SAPZ initiative in Kano aimed to expand access to improved technologies, strengthen extension services, reduce post-harvest losses and create market opportunities for rural farmers.
“These innovations are not theoretical. They are practical solutions that farmers can adopt immediately to raise productivity and increase income,” he said, while commending the support of local authorities.
Mustapha said the inputs distributed to 9,870 farmers included FARO 44 improved seeds, Urea and NPK fertilizers, and insecticides, targeting beneficiaries in Garun Malam, Gezawa, Bichi and Bagwai LGAs during the 2025 wet season.
She added that experts trained farmers on soil selection, seed dressing, nursery establishment, land preparation, and timely transplanting at proper spacing.
“They also covered fertilizer management, weed control, Integrated Pest Management and water regulation to boost rice yields.
“The training emphasised harvesting at optimal maturity, drying paddy to safe moisture levels, and fumigation using phostoxin to prevent storage losses,” she stated.
A beneficiary, Salamatu Ali, said the intervention had positioned Kano farmers to boost yields, withstand climate pressures and increase household incomes.
Another farmer, Huwaila Ibrahim, said the programme transformed her approach to rice production.
“Before, we planted without checking whether the land was suitable.
“Now, we first assess the soil to ensure it matches the seed variety. This season, we cultivated FARO 44,” she said.
Ibrahim added that her output increased from 20–25 bags per acre to about 40 bags after adopting the improved technologies.
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