Nigeria’s Oil Industry Under Siege from International Syndicates and Domestic “Oil Mafia”
Nigeria’s oil sector, the backbone of Africa’s largest economy, is facing serious threats both internally and externally.
While the Nigerian National Petroleum Company Limited (NNPC) warns of sophisticated international criminal gangs looting crude oil, Aliko Dangote, CEO of Africa’s largest oil refinery, is confronting a powerful domestic “oil mafia.”
At the Africa Chief of Defence Staff Conference in Abuja, NNPC’s Group CEO, Bashir Ojulari, highlighted that crude theft is orchestrated by international and continental syndicates exploiting weak security and poor enforcement systems across Africa.
“Crude theft and related illegal activities are not purely local occurrences. They involve specialised international networks taking advantage of gaps in national and regional security to steal billions of dollars annually,” Ojulari said.
He emphasized that security is a cornerstone of energy business, crucial for achieving national, regional, and continental energy security goals.
Recent operations by the Nigerian Army’s 6 Division illustrate the scope of the problem. In a single crackdown, over 32,000 gallons of stolen petroleum were recovered, and 69 suspects arrested.
Yet challenges persist, including corruption, insufficient infrastructure, and difficult terrain in oil-producing areas.
While NNPC focuses on external threats, Dangote is tackling entrenched local actors seeking to undermine his $20 billion refinery, Africa’s largest.
In a February interview with Forbes, Dangote described the project as the riskiest of his career, noting that his biggest challenge has been the so-called “oil mafia.”
“The oil mafia is more dangerous than the drug mafia because so many people are involved. You may be wining and dining with them, but they are the masters of moving things around,” Dangote said.
At a May investment event in Lagos, he explained that these domestic organizations have long profited from government subsidies on imported petroleum.
With Dangote’s refinery poised to eliminate Nigeria’s import dependence, their grip on the lucrative import market is threatened.
He warned that attempts to sabotage the refinery continue, demonstrating the sector’s resistance to change.
Together, the NNPC’s concerns about international oil theft and Dangote’s struggle against domestic cartels reveal an industry under siege.
Nigeria loses billions of dollars annually to international criminal syndicates, while entrenched domestic interests resist efforts to develop a self-sufficient, modern refining sector.
