Rentierism and security privatisation in the Nigerian petroleum industry: assessment of oil pipeline surveillance and protection contracts

Abstract

SUMMARY This briefing examines rentierism and security privatisation in the Nigerian petroleum industry. It demonstrates how the awarding of oil pipeline surveillance and protection contracts, with little attention to organisational capacity of applicant companies, resulted in widespread discontent among militias and groups not recognised or rewarded by a contract. These groups then intensified attacks on oil infrastructures in the post-amnesty era. The authors' findings endorse the government's 2015 decision to terminate the contracts, while they recommend transparent and democratic management of oil wealth as a long-term solution to human insecurity in the Niger Delta.

The implications of oil theft on social and economic development in the Niger Delta

“…In summary, the rentier state structure of Nigeria can be identified as a common basis for the identification of conflict and corruption, as the key reasons for oil theft in the Niger Delta. This position aligns with the findings in other studies such as Adibe et al (2018) and Soremi (2013). The observation is also linked to the substantial international influence of MNCs in a rentier state, whereby the corporations aim to procure favours of political leaders, rather than carefully cultivating a mutually-beneficial relationship with the local populace.…”

“…Njoku (2016) reiterate this position and emphasize the influence of the dependence on an oil economy that is not dominantly controlled and operated by local actors. In addition, Adibe et al (2018) also apply the notion of a rentier state to explain the increase in incidence of oil theft and the disenfranchisement of the citizens resident in oil-producing states. Altogether, there is a consensus on the importance of studying the occurrence of oil theft in the Nigeria Delta and analyzing its harmful effects on the drive for international investment, but more importantly, examining its debilitating impacts on the people of the Niger Delta.…”

“…This action can lead to conviction and sentencing of the culprits, which in effect will deter other elites from venturing into oil theft. Transparent criminal records will also dissuade the government from awarding security contracts to militants (Adibe et al, 2018), as this practice pose a challenge of double jeopardy whereby criminals are not prosecuted and the conflict situation in the region can be exacerbated with the militants' access to funds and weapons. Election and governance processes: Transparency and accountability can also help guarantee that election processes are free and fair and devoid of manipulation.…”

Redressing harmful environmental practices in the Nigerian petroleum industry through the criminal justice approach

“…However, crimes referred to as oil crimes have been written about in environmental and petroleum related literature. 154 Such oil crimes include illegal oil bunkering or crude oil theft, sea piracy (attacks on the facilities and personnel of oil installations and rigs and private individuals), oil pipelines vandalism, fuel scooping, cross-border smuggling of petroleum products, oil terrorism/attacks on critical oil installations, kidnapping and hostage-taking of oil workers. 155 While the term oil crimes has not been specifically used in any legislation in Nigeria, the Petroleum Production and Distribution (Anti-Sabotage) Act provides for the offence of sabotage.…”