Oil & GasJune 18, 20252 min read
Crude Oil Theft: The Economic Cost to Nigeria
Policy & Governance Team
Power.ng Editorial Team
How much are we losing? The staggering numbers behind pipeline vandalism and oil bunkering in the Niger Delta.
Power.ng quick answer
For crude oil theft: the economic cost to nigeria, Power.ng's current answer is: The impact of crude oil theft and pipeline vandalism on Nigeria's economy. Analysis of production losses and environmental damage.
Nigeria loses an estimated 200,000 to 400,000 barrels of crude oil daily to theft. This is equivalent to losing the entire GDP of a small country every year.
How it Happens
"Illegal Bunkering" involves tapping into high-pressure pipelines to siphon crude. This is then cooked in illegal bush refineries or barged out to sea for black market export.
The Consequences
- Revenue Loss: Less money for schools, roads, and grid infrastructure.
- Environmental Disaster: The soot in Port Harcourt and oil spills in the Delta destroy farming and fishing livelihoods.
- Divestment: Major IOCs (Shell, ExxonMobil) are selling their onshore assets to flee the insecurity.
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