Economic Implication of Crude Oil Theft in Nigeria

Abstract

This study is carried out against the backdrop of oil theft as a threat to the economy and security of Nigeria. The study relied on existing literature on the problem and also draws from the Resource Curse Theory. The importance of crude oil to the economic development of Nigeria is also stressed. The reasons why crude oil should be sustained also form the epicentre of our discussion. The threat of the nefarious act on the security of the country is one of the main thrust of this work. The Dutch disease is identified as an economic explanation of the resource curse theory and this is used to explain the economic implication of oil theft in the Niger Delta of Nigeria. The paper posited that the implications on sustainable economic development include; reduced revenue, increased unemployment and diversification of the economy. Other implications include sustainable conflict, possession of arms, curb social development and displacement of persons. To fight the illicit practice of oil theft, it is recommended that transparency and accountability should be adhered to while security operatives should be re-oriented on the ethics of their job and there should be close relationship among government, oil producing communities and multinational corporations.