Pipeline Vandalization in Africa
Chapter One
Objectives of the Study
The main objective of the study is to investigate the extent of pipeline vandalism in Africa. The specific 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
LITERATURE REVIEW
Concept of Pipeline Vandalism
Vandalism is an action involving deliberate destruction of public or private property. Within the civic domain, vandalism denotes willful destruction of public or government property in keeping with criminal or political intent. Oil pipeline vandalism therefore implies deliberate breaking of oil pipelines with the intent to steal petroleum products or to sabotage the government (Vidal, 2011). In Nigeria, oil pipeline vandalism has been perpetrated principally by criminal syndicates who are motivated by the desire to loot oil products for material aggrandizement. This organized crime is often aided and abated by the state agents, which gives it a semblance of a franchise. Oil pipeline vandalism is also known in Nigeria as oil bunkering, which is the act of drilling into the pipelines with the intent to steal products.
The Structure of Nigeria’s Oil Pipeline System
The discovery of crude oil in commercial quantity in Oloibiri in 1956 marked the birth of the petroleum industry in Nigeria. Since then, the Nigeria economy has been more or less dependent on petroleum. To facilitate the distribution of crude oil product from the oil rich Niger-Delta to other parts of the country, a network of oil pipelines was constructed to inter-link some states at strategic locations (Onuorah, 2007). Nigeria has a total pipeline grid of 5001 kilometers. This consists of 4315 kilometers of multi- product pipelines and 666 kilometers of crude oil pipelines. These pipelines transverse the country, forming a network that inter-connects the 22 petroleum storage depots. The four refineries include Port-Harcourt (I & II), Kaduna and Warri, the off-shore terminals at Bonny and, Escravos, and the Jelties at Alas Cove, Calabar, Okirika and Warri (Onuoha, 2007).
Incidence and Prevalence of Oil Pipeline Vandalism in Nigeria
The Nigerian oil Pipeline infrastructure has been subjected to incessant attacks by vandals over the years. The frequency of such attacks has been rather disturbing in the recent times. For instance, in 1999 alone, there were a total of 477 recorded cases of pipeline vandalism in Nigeria (Ogbeni, 2012). The incessant occurrence of oil pipeline vandalism in Nigeria has raised the question as to whether the pipeline networks were laid in such a manner that forecloses easy vandalism.
Due to the increasing incidence of oil pipeline vandalism, some safety measures were adopted by government to secure the facility; some safety valves were considered while laying the pipelines. For instance, the government acquired 3.5 meters wide Right of Way (ROW) on each side of the pipelines; also the pipes were buried a meter deep to avoid accidental contacts, or vandalism. Despite these safety valves, recent experience in Nigeria has shown that the integrity and safety of these pipelines have been incessantly compromised because of the activities of vandals and saboteurs. The vandals fracture the oil pipelines with the criminal intent of obtaining and appropriating petroleum products for commercial purposes or personal use.
CHAPTER THREE
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
The population of the study was 979 respondents cutting across Business Owners (major and independent petroleum marketers, their Managers and Customers, as well as stakeholder employees from the 3 government agencies namely; Central Bank of Nigeria (CBN), Nigerian Electricity Regulatory Commission (NERC) and Nigeria National Petroleum Corporation (NNPC).
Sample and Sampling Technique
Taro Yamane formula was used to determine the Sample Size (284) for the study. Simple proportion was applied to determine the number of business owners, managers, customers and employees that made up the sample size.
CHAPTER FOUR
RESULTS AND DISCUSSION
Response Rate
Table 4.1: Response Rate
Designation of the respondents where applicable
CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS
Conclusion
The study concludes that the actions of the militant groups is a serious economic sabotage which if allowed to go unchecked will continue to be having a devastating effect on the country’s economy. The activities of the vandals no doubt, result to insecurity, colossal Oil revenue losses, drop in electricity generation and general damage to pipeline infrastructure and environmental pollution which negatively affects investment opportunities and business prosperity. The implication to business activities is that, vandalism results to scarcity of PMS and subsequent increase in the price of fuel at a black market rates, insecure business environment, incessant power failure which grounded many businesses activities and subsequently, retard country’s economic growth and development that affects the general standard of living of the Nigerian citizens.
Recommendations
Based on the above conclusion, we make the following recommendations:
- Federal Government of Nigeria should through the NNPC collaborate with the nation’s 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 country’s
- 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-Delta and all amnesty programmes in the Niger Delta should be dealt with head-on by the anti- corruption agencies (EFCC & ICPC) in Nigeria as doing so will ensure that all proposed schemes/projects were executed in line with contractual specifications for the betterment of all members of the
- Federal Government should device new measures of lying standard pipeline infrastructure in line withglobal best practices so that the incidence of pipeline vandalism will be eradicated or reduced to it bear rest
Contributions to Knowledge
The study makes three unique contributions to existing knowledge. Firstly, the study contributed in the understanding of the implications of Oil pipeline vandalism on business activities in Nigeria. Secondly, the study identify some variables that are unique to the Nigerian environment such as militancy, insurgency and vandalism as the major problem affecting the country’s economy. Finally, the study contributes to the need for peaceful co- existence under which a successful business activity could thrive which will subsequently result to economic growth and development.
References
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