Nigeria, despite having abundant resources, has failed to exploit them to improve the quality of life of its people. The recent discovery of an illegal pipeline connected to the oil network highlights the extent of corruption and government mismanagement in the country.
The pipeline was discovered in October 2022 and had been in operation for nine years, stealing an estimated 250,000 barrels of oil per day. This incident is just one example of the large-scale theft of oil and money that is occurring in Nigeria due to corruption and a lack of government control. This situation is costing the country billions of dollars, with estimates of daily losses ranging from 150,000 to 600,000 barrels of oil.
The lack of security in the oil-producing regions of the country dates back to the 1960s, with a civil war and subsequent conflicts over control of resources contributing to the current situation. As a result, international investment in the country has declined significantly, with major companies such as Shell, Chevron, ExxonMobil, Eni, and Total selling their assets and leaving.
Nigeria’s oil production has also suffered, with the country losing its position as the leading African oil producer to Angola. The country’s low productivity is costing it a fortune, with estimates of losses exceeding 1 billion euros in January 2023 alone. The lack of transparency and control by the National Petroleum Corporation is exacerbating the problem, making it difficult to accurately assess the extent of theft and loss.