Pipeline Vandalization in Africa
Chapter One
Objectivesย ofย theย Study
The main objective of the study is to investigate the extent of pipeline vandalism in Africa.ย Theย specificย objectives are:
- To assess how pipeline vandalism result to decline in crude Oil revenue
- To investigate how scarcity of PMS arising from pipeline vandalism impact on business activities in
- To determine how decline in electricity generation arising from pipeline vandalism affects business activities in
CHAPER TWO
LITERATUREย REVIEW
ย Concept ofย Pipelineย Vandalism
Vandalism is an action involving deliberate destruction of public or private property. Within the civic domain,ย vandalism denotes willful destruction of public or government property in keeping with criminal or politicalย intent. Oil pipeline vandalism therefore implies deliberate breaking of oil pipelines with the intent to stealย petroleum products or to sabotage the government (Vidal, 2011). In Nigeria, oil pipeline vandalism has beenย perpetrated principally by criminal syndicates who are motivated by the desire to loot oil products for materialย aggrandizement. This organized crime is often aided and abated by the state agents, which gives it a semblanceย of a franchise. Oil pipeline vandalism is also known in Nigeria as oil bunkering, which is the act of drilling intoย theย pipelinesย withย theย intentย to stealย products.
The ย Structure ย of ย Nigeria’s ย Oil ย Pipeline ย System
The discovery of crude oil in commercial quantity in Oloibiri in 1956 marked the birth of the petroleum industryย in Nigeria. Since then, the Nigeria economy has been more or less dependent on petroleum. To facilitate theย distribution of crude oil product from the oil rich Niger-Delta to other parts of the country, a network of oilย pipelines was constructed to inter-link some states at strategic locations (Onuorah, 2007). Nigeria has a totalย pipelineย gridย ofย 5001ย kilometers.ย Thisย consistsย ofย 4315ย kilometersย ofย multi-ย productย pipelinesย andย 666ย kilometersย of crude oil pipelines. These pipelines transverse the country, forming a network that inter-connects the 22ย petroleum storage depots. The four refineries include Port-Harcourt (I & II), Kaduna and Warri, the off-shoreย terminalsย atย Bonnyย and,ย Escravos,ย andย theย Jeltiesย atย Alasย Cove,ย Calabar,ย Okirikaย andย Warriย (Onuoha,ย 2007).
Incidenceย andย Prevalenceย ofย Oil ย Pipeline ย Vandalism ย in ย Nigeria
The Nigerian oil Pipeline infrastructure has been subjected to incessant attacks by vandals over the years. Theย frequency of such attacks has been rather disturbing in the recent times. For instance, in 1999 alone, there wereย a total of 477 recorded cases of pipeline vandalism in Nigeria (Ogbeni, 2012). The incessant occurrence of oilย pipeline vandalism in Nigeria has raised the question as to whether the pipeline networks were laid in such aย manner thatย foreclosesย easyย vandalism.
Due to the increasing incidence of oil pipeline vandalism, some safety measures were adopted by governmentย toย secureย theย facility;ย someย safetyย valvesย wereย consideredย whileย layingย theย pipelines.ย Forย instance,ย theย government acquired 3.5 meters wide Right of Way (ROW) on each side of the pipelines; also the pipes wereย buriedย aย meterย deepย toย avoidย accidentalย contacts,ย orย vandalism.ย Despiteย theseย safetyย valves,ย recentย experienceย inย Nigeria has shown that the integrity and safety of these pipelines have been incessantly compromised becauseย of the activities of vandals and saboteurs. The vandals fracture the oil pipelines with the criminal intent ofย obtaining and appropriating petroleum products for commercial purposes or personal use.
CHAPTER THREE
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RESEARCH METHODOLOGY
Research Design
A study design refers to procedure of requirements for the processing data in way that seeks to incorporate economic and operational importance to the research objective (Ahuja, 2010). The research employed survey design. In this context, this design research is described as collecting information from a survey of individuals by answering questions (Check & Schutt, 2012). This methodology allows for a range of ways of hiring volunteers, collecting data, and using specific instrumentation techniques.
Target Population
Theย populationย ofย theย study was 979 respondents cutting across Business Owners (major and independent petroleum marketers, theirย Managers and Customers, as well as stakeholder employees from the 3 government agencies namely; Centralย Bank of Nigeria (CBN), Nigerian Electricity Regulatory Commission (NERC) and Nigeria National Petroleumย Corporation (NNPC).
ย Sampleย andย Samplingย Technique
Taro Yamane formula was used to determine the Sample Size (284) for the study. Simpleย proportion was applied to determine the number of business owners, managers, customers and employees thatย made up the sample size.
CHAPTER FOUR
RESULTS AND DISCUSSION
ย Response Rate
Table 4.1: Response Rate
Designation of the respondents where applicable
CHAPTER FIVE
CONCLUSIONย ANDย RECOMMENDATIONS
ย Conclusion
Theย studyย concludesย thatย theย actionsย ofย theย militantย groupsย isย aย seriousย economicย sabotageย whichย ifย allowedย toย goย unchecked will continue to be having a devastating effect on the countryโs economy. The activities of theย vandals no doubt, result to insecurity, colossal Oil revenue losses, drop in electricity generation and generalย damage to pipeline infrastructure and environmental pollution which negatively affects investment opportunitiesย and business prosperity. The implication to business activities is that, vandalism results to scarcity of PMS andย subsequent increase in the price of fuel at a black market rates, insecure business environment, incessant powerย failure which grounded many businesses activities and subsequently, retard countryโs economic growth andย developmentย that affectsย theย generalย standardย ofย livingย of the Nigerianย citizens.
Recommendations
Basedย onย theย aboveย conclusion,ย weย makeย theย followingย recommendations:
- Federal Government of Nigeria should through the NNPC collaborate with the nationโs military and other security agencies to ensure adequate policing and protection of critical pipeline infrastructure throughout the country so as to checkmate the activities of pipeline vandals which is having a devastating effects on the countryโs
- The National Assembly should review its legislation on pipeline vandals in the country to ensure stiffer penalties for the perpetrators so as to guard against future occurrence and put a stop to the economic sabotage which paralyzes business
- Multi-national Oil Companies into the exploration activities in the Niger- Delta region, should been couraged by government to be more involved in some socially responsible actions through the provision of some basic amenities, scholarships and sponsorship of some major events to help assist the immediate communities in which they operate, as this will go long way in reducing the tension and clamour for all forms of political and militant agitations which has become the order of the day in the
- Federal Government should be sincere in it implementation of insurgency developmental programmesas pledged by ensuring that all areas of understanding as agreed with leaders of the Niger-Delta are met so as to restore confidence in the leadership which will bring about the much needed lasting peace that will result to increase in Oil production and subsequently, increase in Oil revenue and economic growth and development.
- The endemic corruption associated with Niger Delta Development Company (NDDC), Ministry ofNiger-Deltaย andย allย amnestyย programmesย inย theย Nigerย Deltaย shouldย beย dealtย withย head-onย byย theย anti-ย corruption agencies (EFCC & ICPC) in Nigeria as doing so will ensure that all proposedย schemes/projects were executed in line with contractual specifications for the betterment of allย membersย ofย the
- Federal Government should device new measures of lying standard pipeline infrastructure in line withglobalย bestย practicesย soย thatย theย incidenceย ofย pipelineย vandalismย willย beย eradicatedย orย reducedย toย itย bearย rest
Contributionsย toย Knowledge
Theย studyย makesย threeย uniqueย contributionsย toย existingย knowledge.ย Firstly,ย theย studyย contributedย inย theย understandingย ofย theย implicationsย ofย Oilย pipelineย vandalismย onย businessย activitiesย inย Nigeria.ย Secondly,ย theย studyย identifyย some variablesย thatย areย uniqueย toย theย Nigerianย environmentย suchย asย militancy,ย insurgencyย andย vandalismย as the major problem affecting the countryโs economy. Finally, the study contributes to the need for peaceful co-ย existence under which a successful business activity could thrive which will subsequently result to economicย growthย andย development.
References
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