INFRASTRUCTURAL PROTECTION, SECURITY, AND PREVENTION OF OIL THEFT IN THE NIGER DELTA

Author: Silva Opuala-Charles

ABSTRACT

This study investigates the impact of infrastructural protection on security and the prevention of oil theft in Nigeria’s Niger Delta region. The research addresses the gap in understanding the direct relationship between government expenditure on infrastructure protection and the reduction of oil theft and revenue losses. Using the Autoregressive Distributed Lag (ARDL) model, the study analyzes the relationship between key variables: government expenditure on infrastructure, crude oil losses, and revenue losses from oil theft. Findings reveal a strong positive influence of government investment in infrastructural protection on reducing oil theft and safeguarding economic stability. However, crude oil losses continue to pose challenges despite increased expenditures, indicating that additional measures, such as enhanced local surveillance and community engagement, are necessary to strengthen protection. The study recommends a multi-faceted approach that includes the digitalization of the oil and gas sector, using technologies like robotics, drones, IoT, and cloud computing, and also stakeholders’ engagement between the government, host communities, and oil companies.

Keywords: Government Expenditure; Infrastructural; Infrastructural Protection; Oil Theft; Insecurity; and Revenue Losses.

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