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The percentages reversed between 2012 and 2017, starting from 75% international black market / 25% domestic black market (i.e. sold inside Nigeria) to 25% inter
by AlbertoGP 6y ago
The percentages reversed between 2012 and 2017, starting from 75% international black market / 25% domestic black market (i.e. sold inside Nigeria) to 25% international / 75% domestic. That’s in the states of Bayelsa and Rivers (Bonny Island, mentioned in the story, is in Rivers State) according to the 2018 report ““More Money, More Problems” – Economic Dynamics of the Artisanal Oil Industry in the Niger Delta Over Five Years” by the British NGO Stakeholder Democracy Network (SDN).
“Our analysis indicates that all levels of the artisanal oil refining value chain are better organised and more profitable than five years ago. Data simulations indicate there are more refineries in operation, that are capable of producing larger volumes of fuel.
The industry is characterised by severe threats to stabilisation, which will continue to escalate if
the drivers of the industry are not addressed effectively. These include poor working conditions,
environmental pollution, health hazards, revenue loss to the government, increased risk of
armed confrontation between associates, and raids on communities by security agencies.
These problems are layered upon, and a result of, the environmental destruction, economic
underdevelopment, and insecurity which has been caused by the actions and poor governance
of the oil industry in the region.
At the same time, the supply chain is efficient in processing large amounts of fuel to feed the
growing domestic demand that cannot be met by the Federal Government. The informal system
observed appears to be functioning for many people - providing not only fuel, but livelihoods
and a sense of economic and environmental justice.
The situation demonstrates that the current responses are not addressing the complex
economic dynamics that sustain the industry and encourage new entrants. Instead, the focus
on militarised policy appears to be catalysing the development of the industry at a rapid rate.
To encourage withdrawal of those embedded in the industry, as well as those drawn into it for
employment, policies should prioritise the development of economic alternatives that put the
demonstrated skills to use in the formal economy, as well as the energy poverty driving demand.”
“More Money, More Problems” – Economic Dynamics of the Artisanal Oil Industry in the Niger Delta Over Five Years:
- http://www.stakeholderdemocracy.org/wp-content/uploads/2019/06/AOR-digital-layout-28.05.19-JB-24.06.19-DT.pdf http://www.stakeholderdemocracy.org/wp-content/uploads/2019/...
- http://www.stakeholderdemocracy.org/moremoneymoreproblems/ http://www.stakeholderdemocracy.org/moremoneymoreproblems/
I’ve worked with SDN over the years developing the Oil Spill Monitor and the Gas Flare Tracker applications that the Nigerian government uses for tracking environmental damage from the oil industry: https://sentido-labs.com/en/library/?filter=nigerian https://sentido-labs.com/en/library/?filter=nigerian