Frontline Professor of International Law and Deputy Vice Chancellor of Afe Babalola University, Ado Ekiti (ABUAD), Damilola Olawuyi (SAN) has called on the Federal Government to scale up strategic international cooperation and diplomacy needed to track and deter the international beneficiaries of criminal oil theft.
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The Senior Advocate of Nigeria, who is also the global vice chair of the International Law Association, made this call while speaking on Friday on Channels Television’s Business Morning Show program. Olawuyi analyzed the multidimensional and international law aspects of crude oil theft, calling it ‘a complex financial, economic, sustainability, human rights and foreign policy challenge.’
It is estimated that Nigeria has lost more than $2 billion to oil theft in the year 2022 alone. While commending recent progress made over the last few months in reducing oil theft and boosting production figures, Olawuyi noted that it is too early for any victory dance, as a lot more will still need to be done to deter oil theft by addressing the demand side of illicit trade in Nigeria’s oil and gas resources. He noted that crude oil theft robs Nigeria of revenue that could be used to develop critical healthcare, education, water and energy infrastructure, leaving a huge dent on the realization of all aspects of the United Nations Sustainable Development Goals in Nigeria.
He lamented how lack of strategic coordination among key regulatory agencies and entities continue to hinder the multidimensional and multistakeholder cooperation needed to comprehensively end crude oil theft in Nigeria. Professor Damilola S. Olawuyi, SAN noted “The reason why crude oil theft is still attractive to criminals today is that there is a ready market for it. This raises the need for a smart mix of regulatory approaches, including strategic international cooperation, aimed at dismantling the demand side of illicit crude oil. There is an urgent need for concerted diplomatic efforts aimed at tracking the organized criminal networks that profit from the illicit transfer and sale of stolen crude oil. There is also a need for increased data and information sharing between NNPCL and other relevant entities, ministries, and agencies, including entities such as the NEITI, National Human Rights Commission, EFCC, ICPC, foreign affairs ministry, security agencies, and other entities that have critical roles to play across the entire value chain of safeguarding the safe and sustainable development of Nigeria’s oil resources’
He noted that combatting illicit trade in crude oil requires multistakeholder cooperation. While noting that current public-private partnership arrangements on security in the Nigeria Delta are proactive efforts that have yielded commendable short-term results, he called for long-term efforts aimed at equipping the security architecture with internationally comparable training, equipment and tools needed to effectively track, measure, and root out crude oil theft. He also noted the uregent need for NNPCL and other entities to participate in voluntary international initiatives such as the Transnational Alliance to Combat Illicit Trade (TRACIT) that can enable the exchange of best practices and knowledge on how to effectively track and deter international illicit trade in crude oil.
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