IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v15y2022i17p6197-d897941.html
   My bibliography  Save this article

The Conundrums of Illicit Crude Oil Refineries in Nigeria and Its Debilitating Effects on Nigeria’s Economy: A Legal Approach

Author

Listed:
  • Olusola Joshua Olujobi

    (Department of Public and International Law, College of Law, Afe Babalola University, Ado Ekiti 360101, Ekiti State, Nigeria)

  • Elizabeta Smaranda Olarinde

    (Department of Private and Business Law, Former Provost, College of Law, Afe Babalola University, Ado Ekiti 360101, Ekiti State, Nigeria)

  • Tunde Ebenezer Yebisi

    (Department of Private and Business Law, Provost College of Law, Afe Babalola University, Ado Ekiti 360101, Ekiti State, Nigeria)

Abstract

Nigeria’s oil industry encounters crude oil theft in commercial quantities, which is often exported to neighbouring countries. This has occasioned a loss of revenue and has caused environmental pollution due to oil spillages. There is a need for a stringent legal framework to combat the menace caused by incessant crude oil thefts, pipeline vandalisation by militants, and inadequate maintenance of existing crude oil refineries. The study adopts doctrinal legal research methods and a conceptual approach with the consideration of primary and secondary sources of law, for instance, the Petroleum Industry Act 2021, the Nigeria Extractive Industry Transparency Initiative (NEITI Act 2007, International Conventions, law textbooks and peer-reviewed journals. The justification for using the method was to establish the trustworthiness of the findings on illicit crude oil refineries. The findings reveal that the Nigerian government has lost more than 150,000 barrels of crude oil daily valued at USD six billion as a result of crude oil theft. This has reduced oil revenues, which ought to have added to the national treasury. The Petroleum Production and Distribution (Anti-Sabotage Act) 2007, which proscribes disruption of petroleum products in Nigeria, has not been diligently enforced. There is also an absence of a specific oil and gas legal framework criminalising crude oil theft. Section 3(e)(f)(iv) of the Nigeria Security and Civil Defence Corps Act only offers pipeline security as one of the functions of the corps, without distinctly stating the penalties to be imposed on those damaging crude oil pipelines. The study designs a hybrid model for the renovation of the country’s crude oil refineries. It also advocates the need to redefine legal regimes on illegal oil refineries by amending the Petroleum Industry Act to include specifically illegal oil refineries provision and to effectively criminalise crude oil theft. The implications of the main results are as follows: criminalising crude oil theft and pipeline vandalisation with vigorous punishments will serve as deterrence to others in the sector, increase revenues for the government and reduce environmental pollution.

Suggested Citation

  • Olusola Joshua Olujobi & Elizabeta Smaranda Olarinde & Tunde Ebenezer Yebisi, 2022. "The Conundrums of Illicit Crude Oil Refineries in Nigeria and Its Debilitating Effects on Nigeria’s Economy: A Legal Approach," Energies, MDPI, vol. 15(17), pages 1-15, August.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:17:p:6197-:d:897941
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/15/17/6197/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/15/17/6197/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Olusola J. Olujobi & Olabode A. Oyewunmi & Adebukola E. Oyewunmi, 2018. "Oil Spillage in Nigeria s Upstream Petroleum Sector: Beyond the Legal Frameworks," International Journal of Energy Economics and Policy, Econjournals, vol. 8(1), pages 220-226.
    2. Daniel E. Ufua & Olusola J. Olujobi & Mercy E. Ogbari & Joseph A. Dada & Oluwatosin D. Edafe, 2020. "Operations of small and medium enterprises and the legal system in Nigeria," Palgrave Communications, Palgrave Macmillan, vol. 7(1), pages 1-7, December.
    3. Olabode A. Oyewunmi & Olusola J. Olujobi, 2016. "Transparency in Nigeria s Oil and Gas Industry: Is Policy Re-engineering the Way Out?," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 630-636.
    4. Olusola Joshua Olujobi & Daniel E. Ufua & Uchechukwu Emena Okorie & Mercy E. Ogbari, 2022. "Carbon emission, solid waste management, and electricity generation: a legal and empirical perspective for renewable energy in Nigeria," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 22(3), pages 599-619, September.
    5. Olusola Joshua Olujobi, 2020. "RETRACTED: Analysis of the Legal Framework Governing Gas Flaring in Nigeria’s Upstream Petroleum Sector and the Need for Overhauling," Social Sciences, MDPI, vol. 9(8), pages 1-19, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Olusola Joshua Olujobi & Elizabeta Smaranda Olarinde & Tunde Ebenezer Yebisi & Uchechukwu Emena Okorie, 2022. "COVID-19 Pandemic: The Impacts of Crude Oil Price Shock on Nigeria’s Economy, Legal and Policy Options," Sustainability, MDPI, vol. 14(18), pages 1-20, September.
    2. Vlado Vivoda & Ghaleb Krame & Martin Spraggon, 2023. "Oil Theft, Energy Security and Energy Transition in Mexico," Resources, MDPI, vol. 12(2), pages 1-15, February.
    3. Henry Onoriode & Uche Collins Nwogwugwu & Chris Kalu & Maria Chinecherem Uzonwanne, 2024. "Effect of Tax Revenue on Investment in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3), pages 2501-2520, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Olusola Joshua Olujobi & Elizabeta Smaranda Olarinde & Tunde Ebenezer Yebisi & Uchechukwu Emena Okorie, 2022. "COVID-19 Pandemic: The Impacts of Crude Oil Price Shock on Nigeria’s Economy, Legal and Policy Options," Sustainability, MDPI, vol. 14(18), pages 1-20, September.
    2. Olusola Joshua Olujobi & Tunde Ebenezer Yebisi & Oyinkepreye Preye Patrick & Afolabi Innocent Ariremako, 2022. "The Legal Framework for Combating Gas Flaring in Nigeria’s Oil and Gas Industry: Can It Promote Sustainable Energy Security?," Sustainability, MDPI, vol. 14(13), pages 1-20, June.
    3. Olusola Joshua Olujobi & Daniel E. Ufua & Uchechukwu Emena Okorie & Mercy E. Ogbari, 2022. "Carbon emission, solid waste management, and electricity generation: a legal and empirical perspective for renewable energy in Nigeria," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 22(3), pages 599-619, September.
    4. Daniel E. Ufua & Olusola J. Olujobi & Mercy E. Ogbari & Joseph A. Dada & Oluwatosin D. Edafe, 2020. "Operations of small and medium enterprises and the legal system in Nigeria," Palgrave Communications, Palgrave Macmillan, vol. 7(1), pages 1-7, December.
    5. Daniel E. Ufua & Evans Osabuohien & Mercy E. Ogbari & Hezekiah O. Falola & Emmanuel E. Okoh & Adnan Lakhani, 2021. "Re-Strategising Government Palliative Support Systems in Tackling the Challenges of COVID-19 Lockdown in Lagos State, Nigeria," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 22(1), pages 19-32, June.
    6. Olujobi, Olusola Joshua & Irumekhai, Oshobugie Suleiman, 2024. "Strategies and regulatory measures for Combatting illicit mining operations in Nigeria: A comprehensive legal perspective," Resources Policy, Elsevier, vol. 88(C).
    7. Ifeoma Christy Mba & Emmanuel Ikechukwu Mba & Jonathan Emenike Ogbuabor & Winnie Ogochukwu Arazu, 2019. "Causes and Terrain of Oil Spillage in Niger Delta Region of Nigeria: The Analysis of Variance Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 283-287.
    8. Olabode A. Oyewunmi, 2018. "Oil Price Fluctuations and Dependency Malaise: What will Engender Socio-economic Adjustments?," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 167-173.
    9. Olusola Joshua Olujobi & Olabode Adeleke Oyewunmi, 2017. "Annulment of Oil Licences in Nigeria s Upstream Petroleum Sector: A Legal Critique of the Costs and Benefits," International Journal of Energy Economics and Policy, Econjournals, vol. 7(3), pages 364-369.
    10. Kerong Zhang & Liangyu Jiang & Yanzhi Jin & Wuyi Liu, 2022. "The Carbon Emission Characteristics and Reduction Potential in Developing Areas: Case Study from Anhui Province, China," IJERPH, MDPI, vol. 19(24), pages 1-28, December.
    11. Modupe Oluyemisi Oyebanji & Rui Alexandre Castanho & Sema Yilmaz Genc & Dervis Kirikkaleli, 2022. "Patents on Environmental Technologies and Environmental Sustainability in Spain," Sustainability, MDPI, vol. 14(11), pages 1-17, May.
    12. Olabode Adeleke Oyewunmi & Omotayo Adewale Osibanjo & Hezekiah Oluwabusayo Falola & Olusola Joshua Olujobi, 2017. "Optimization by Integration: A Corporate Governance and Human Resource Management Dimension," International Review of Management and Marketing, Econjournals, vol. 7(1), pages 265-272.
    13. Michael Karikari Appiah & Bayu Taufiq Possumah & Nizam Ahmat & Nur Azura Sanusi, 2018. "Policy Environment and Small and Medium Enterprises Investment in the Ghanaian Oil and Gas Industry," International Journal of Energy Economics and Policy, Econjournals, vol. 8(4), pages 244-253.
    14. Pascaris, Alexis S., 2021. "Examining existing policy to inform a comprehensive legal framework for agrivoltaics in the U.S," Energy Policy, Elsevier, vol. 159(C).
    15. Kumar, Sourabh & Barua, Mukesh Kumar, 2023. "Exploring the hyperledger blockchain technology disruption and barriers of blockchain adoption in petroleum supply chain," Resources Policy, Elsevier, vol. 81(C).
    16. Henry Egbezien Inegbedion & Perejite Roseline Thikan & Joseph Olusegun David & John Oluwasayo Ajani & Fred Ojochide Peter, 2024. "Small and medium enterprise (SME) competitiveness and employment creation: the mediating role of SME growth," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-10, December.
    17. Daniel E. Ufua & Olusola J. Olujobi & Hammad Tahir & Mamdouh Abdulaziz Saleh Al-Faryan & Oluwatoyin A. Matthew & Evans Osabuohien, 2022. "Lean Entrepreneurship and SME Practice in a Post COVID-19 Pandemic Era: A Conceptual Discourse from Nigeria," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(3), pages 331-344, September.
    18. Abdulhamid Ozohu-Suleiman, 2021. "The Energy Crisis and Environmental Concerns in Sub-Saharan Africa (Nigeria): A Perspective on Public Governance for Climate Action," Journal of Public Administration and Governance, Macrothink Institute, vol. 11(2), pages 134155-1341, December.
    19. Ebuwa Elisabeth Eweka & Enrique Lopez-Arroyo & Christian Oluwaremilekun Medupin & Abiola Oladipo & Luiza Cintra Campos, 2022. "Energy Landscape and Renewable Energy Resources in Nigeria: A Review," Energies, MDPI, vol. 15(15), pages 1-20, July.
    20. Olusola Joshua Olujobi, 2020. "RETRACTED: Analysis of the Legal Framework Governing Gas Flaring in Nigeria’s Upstream Petroleum Sector and the Need for Overhauling," Social Sciences, MDPI, vol. 9(8), pages 1-19, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:15:y:2022:i:17:p:6197-:d:897941. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.