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Illegal Bunkery

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Illegal Bunkery
The Political Economy Of Illegal Bunkering In Nigeria

By

Kòmbò Mason Braide (PhD)

Port Harcourt, Nigeria

Demonise & Diabolise:

The Niger Delta has been a source of illicit international business deals (like the trans-Atlantic slave trade), as far back as the 15th century. Today a new form of syndicated criminal proclivity is threatening the very foundations of Nigeria’s petroleum industry, and by extension, the Nigerian economy, as well as putting tremendous pressure on Chief (General) Olusegun Obasanjo. That problem is the "illegal bunkering" of crude oil and/or its derivatives.

The term "bunkering", (whether legal or illegal) has been thoroughly abused, demonised, and misused in Nigerian parlance, so much so that the mere mention of it readily evokes, connotes, or triggers subliminal suggestions of grand illegality in the Nigerian paradigm. For example, when petroleum products pipelines get cannibalised, the Nigerian mind very effortlessly visualises "illegal bunkering" in progress. When shiploads of crude oil (from refineries) get stolen, and are routinely sold off as low-pour fuel oil (LPFO) - a relatively cheaper commodity in the international oil markets - Nigerians simply smile, and know, at the very bottom of their very naive hearts, that "illegal bunkering" has definitely taken place.

While in the Nigerian worldview, "bunkering", (whether legal or illegal), is synonymous with stealing petroleum (or/and its derivatives), in Oxford English, "bunkering" is a legitimate process whereby a duly licensed operator provides fuels, water, and lubricants (bunkering services) for marine vessels on request. Simply stated, "bunkering" is the fuelling of ships. It is like having a floating fuel service station on the high seas, or at coastal jetties, to fuel, or/and supply provisions for ships.

Bunker fuel consists mainly of automotive gas oil (AGO), which has been perennially scarce in Nigeria, and low pour fuel oil (LPFO), an environmentally



References: European Energy Focus: "Calsoft Provide Solution for e-Fuel.com"; (2003). Osigwe, R.: "Nigeria Potentially Main Bunkering Centre in West Coast of Africa"; Global Energy Security Analysis; Alexander 's Gas & Oil Connections; Volume 7, Issue #11; (18 June 2001). Braide, K.M.: ‘The Impact of Deregulation on the Downstream Sector of the Nigerian Oil Industry’; (August 2001) Federal Military Government Of Nigeria: "Special Tribunal (Miscellaneous Offences) Decree No Federal Military Government Of Nigeria: "Trade Disputes (Essential Services) Decree"; (1976) Federal Military Government Of Nigeria: "Petroleum Equalisation Fund (PEF) Decree No Federal Military Government Of Nigeria: "Petroleum Production & Distribution (Anti-sabotage) Decree"; (1975).

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