‘Man must chop’- Illegal oil refining in the Niger Delta

A recent report released by the Stakeholder Democracy Network (SDN), a non-governmental organisation based in Port Harcourt reveals issues around illegal oil refining in the Niger Delta (Bayelsa, Rivers and Delta). The report suggests that illegal oil refining is fast becoming the major livelihood for most local communities in the Niger Delta region.  It has become part of the local economy. Even those originally involved in farming have migrated to illegal oil refining as an occupation.

What is driving this?

• Failure of government to provide basic public services
• Poverty
• Unemployment
• Poor pipeline maintenance by the International Oil Companies (IOC)
• Loss of  local livelihoods such as fishing and farming due to oil pollution

 What are the effects?

• Environmental pollution
• Significant health and safety risks to the illegal refiners and communities in the area (many seem to have persistent cough and breathing problems according to the report)

     Why is it lucrative despite the dangers involved?

• The need to survive- people need to earn a living that affords them the opportunity to meet their basic needs.
• It attracts high returns- low cost to set up but high returns. Materials needed for the refining camp are affordable and easy to get. The average cost for setting it up is N750, 000 ($4700). An average sized camp earns about $7800 per month.

 Key recommendations from the report

• Intensify efforts to stop the supply of stolen crude oil
• Tackle the issue of high unemployment and poverty
• Provide public services and access to private goods and services
• Fill the local petroleum supply gap through renewable solar products

This report reveals key issues facing local communities in the Niger Delta region. It makes  good recommendations which the Nigerian government should pay attention to. Oil spill damage is one of the drivers of illegal oil refining as a result of the damage to traditional livelihoods. Yet oil theft, needed to supply the illegal oil refining, is also is one of the causes of the spillages, producing a vicious circle. Historically the government’s response to oil spills (whatever the cause) has been inadequate.  Addressing the concerns raised in this report requires a genuine transformation. 

Click here to access full report