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PIPELINES VANDALISATION: IMPLICATION ON ECONOMIC DEVELOPMENT IN NIGERIA.

PIPELINES VANDALISATION: IMPLICATION ON ECONOMIC DEVELOPMENT IN NIGERIA.

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PIPELINES VANDALISATION: IMPLICATION ON ECONOMIC DEVELOPMENT IN NIGERIA.

Chapter one

1.0 Introduction

The Nigerian petroleum industry has faced two sapping issues over the years. The issues stem from the frequency of militancy and oil pipeline vandalism in the Niger Delta.

While the former has dramatically decreased in the aftermath of the Amnesty agreement in 2009 (Okoli, 2013), the latter appears to have increased in both incidence and impact. According to Ogbeni:

A total of 16,083 pipeline breaks were recorded over the last ten years, with 398 pipeline breaks (2.4 percent) caused by ruptures and 15, 685 breaks caused by unpatriotic vandals, accounting for approximately 97.5 percent of the total number of cases (Ogbeni, 2012, para 8).

Indeed, oil pipeline vandalism has increased in Nigeria. According to the Nigerian Extractive Industry Transparency Initiative’s (NEITI) 2013 annual report, oil theft cost Nigeria a total of $10.9 billion between 2009 and 2011.

This loss emphasises the importance of vandalism as a real problem in the Nigerian oil industry. Oil pipeline vandalism’s impact on Nigerian security has been starkly proven by its link to economic, environmental, and humanitarian losses and repercussions (Onuoha, 2009).

In effect, oil pipeline vandalism has been linked to negative consequences for the national economy. Despite its topical relevance, the issue of oil pipeline vandalism has received insufficient attention in the literature.

Again, the majority of existing research in the field has been purely journalistic, without analytical rigour and systematisation. This requires a thorough inquiry of the problem.

This article attempts to establish the relationship between oil pipeline sabotage and Nigerian national security. The study contends that oil pipeline sabotage has unintended consequences that endanger Nigeria’s national security.

The discovery of commercial quantities of crude oil at Oloibiri in 1956 launched Niger’s petroleum sector. Since then, Nigeria’s economy has been more or less dependent on petroleum.

To simplify the distribution of crude oil products from the oil-rich Nigeria Delta to other parts of the country, a network of oil pipelines was built to connect various states at crucial points (Onuorah, 2007).

Nigeria has a pipeline grid spanning 5001 kilometres. This includes 4315 km of multiproduct pipelines and 666 km of crude oil pipelines.

These pipelines cross the country, establishing a network that interconnects the 22 petroleum storage depots, the four refineries at Port-Harcourt (I and II), Kaduna, and Warri, the off-shore terminals at Bonny and Escravos, and the jellies at Alas Cove.

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