Chapter 26 - Bunkering Activities in Nigerian Waters and Their Eco-Economic Consequences

Abstract

Commercial exploitation of Nigerian oil and gas reserves began in 1956, shortly after the discovery of oil at Oloibiri in Bayelsa State. The export of the crude oil accounts for 90% of the country’s foreign exchange earnings and more than 70% of its total budget expenditure. Over the years, what seems to be a blessing has constituted a nuisance, leading to environmental degradation, loss of farmlands, loss of fishing grounds, communal clashes, militancy, cultism, and the total breakdown of moral values in the Niger Delta region. These calamities were totally avoidable had successive governments utilized the wealth of the region in developing it. The total neglect of the region as a result of poor governance and corruption provided the platform for the twin problems of oil theft for export and illegal refining. It is estimated that the government is losing approximately $1.7 billion a month, although others speculate much more than this figure. Artisanal refining has exacerbated the already degraded environment by oil spills and industrial discharges. The art of this oil theft is an organized crime with local and international participants, including International Oil Company (IOC) staff, government officials, security personnel, local leaders, and sundry. Of course, stolen oil is sold to countries such as the United States, China, Brazil, Singapore, and other West African countries, among others. This scourge has led to environmental degradation, huge economic losses, and social vices, and it must be stopped now. The government needs to team up with well-meaning international governments to employ the recommendations preferred in this report.