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    Home → Business → Nigeria Battles oil cartels in bid to stabilise naira, improve economy
    Nigeria Battles oil cartels in bid to stabilise naira, improve economy

    Nigeria Battles oil cartels in bid to stabilise naira, improve economy

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    By Naija Daily News on August 25, 2024 Business
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    Nigeria’s government has intensified its crackdown on illegal crude oil operations in the Niger Delta as President Bola Tinubu seeks to boost oil production. With the economy heavily dependent on crude oil revenue, the country is grappling with a sharp decline in the Naira amid widespread reforms that have deepened poverty among the lowest income earners.

    Sources reveal that the ongoing crackdown is focused on the Rivers, Bayelsa, and Delta states, aiming to restore the nation’s oil output closer to its target of two million barrels per day.

    In July 2024, production of crude oil from Nigeria increased slightly to about 1.3 million barrels per day, according to the Organization of the Petroleum Exporting Countries, which 30,000bpd more than 1.27 million bpd recorded during the month of June.

    Though the output was still far below the country’s production quota by OPEC of 1.5 million bpd and way below the 1.78 million bpd assumed in the national budget. Conflicting reports peg the production at as high as 1.61 million bpd, underscoring the recent drive on better output amidst the government’s crackdown on oil theft.

    Bayelsa State

    Over the weekend, the Nigerian Army’s 6 Division, alongside other Joint Task Force security units, arrested 12 suspects in the Ojobo Community of Ekeremor Local Government Area, Bayelsa State. According to Lt. Col. Danjuma Jonah Danjuma, the Acting Deputy Director of 6 Division Army Public Relations, the suspects were apprehended with a vessel containing heavy-duty equipment, including a swamp buggy, a tugboat, and several pipes believed to have been stolen from a Shell Petroleum Development Company (SPDC) facility.

    See also  UK announces road closures, airspace restrictions ahead of Tinubu historic state visit

    He added, “Additionally, troops destroyed an illegal refining site and intercepted a wooden boat and reservoir containing over 5,500 liters of stolen crude at Obotoro Creek and Babrogbene in Southern Ijaw Local Government Area.”

    Rivers State

    In Rivers State, military personnel conducting pipeline surveillance in the Cawthorne Channel I, II, and III areas of Degema Local Government Area intercepted a wooden boat carrying more than 5,000 liters of crude oil. A large wooden boat suspected to be used for illicit activities was also destroyed.

    “Furthermore, two illegal refining sites were dismantled in Odioku and Okoh in Onne Local Government Area, where over 2,000 liters of stolen crude were seized. Two wooden boats hidden in the creeks along Egi and Nkissa, containing over 2,000 liters of crude, were also recovered,” Danjuma said.

    He added that within the Ogbogolo forest in Ahoada West, troops deactivated an illegal refining site with over 4,000 liters of stolen crude. Along the Imo River, 12 illegal refining sites were dismantled, and various products were confiscated.

    Delta State

    In Delta State, an illegal refining site at Ikpemu Creek with over 5,000 liters of stolen crude was shut down, and other sites with various products were similarly deactivated.

    Danjuma confirmed that the arrested suspects would be handed over to relevant prosecution agencies. The General Officer Commanding, 6 Division, Nigerian Army, Maj.-Gen. Jamal Abdussalam, commended the troops for their ongoing efforts and urged them to intensify operations against economic sabotage and other criminal activities.

    JTF Nigeria OPEC Tinubu
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