Modelling the Implications of Oil Pipeline Vandalism on the Nigeria Economy: A Case Study of Niger Delta Region

Abstract

The purpose of this paper is to establish a management approach that may address the problems caused by oil pipeline vandalism in Nigeria, with a particular emphasis on the Niger-Delta pipeline vandalism. The vast majority of the Nigerian federal government's income come from the Niger-Delta area. However, because of the oil spill from the oil pipeline vandalism and the oil and gas operations of oil companies, this region experiences a variety of deteriorating problems, such as poverty, unemployment, environmental degradation, and lack of infrastructure, displacement of indigenes. This paper aims to critically analyse the various manifestations of oil pipeline vandalism in the Delta region of Nigeria, the potential causes of these oil pipeline vandalism, and the consequences of these oil pipeline vandalism in order to develop a comprehensive understanding of the issue and make recommendations to address the problems identified. The paper used a systems thinking (ST) approach, which is necessary for capturing the involvement of host communities and oil and gas companies in causing oil spillages in the Niger Delta region. The oil pipeline vandalism in the Niger Delta is the result of complex interactions between host communities, oil and gas activities, and the surrounding environments. ST is a qualitative technique that seeks to understand this relationship holistically. In order to convey unbiased insights and understanding of the causes of oil pipeline vandalism as experienced in the Niger Delta, ST enables the application of Causal Loop Diagram (CLD) usage to capture the problem as a whole. The data collected from the literature review were analysed using computerised simulation software as Stella Architect®. Additionally, data were analysed to draw the conclusion that oil pipeline vandalism is a significant cause of oil spills in Niger Delta region, which has resulted in an ongoing rise in oil pipeline incidents, deaths from fire explosions, and negative socio-economic effects. However, the main motivation for oil pipeline vandalism is the need for the inhabitants to survive since the government and oil and gas companies have fallen short of their residents' expectations. Therefore, this paper concluded that there is need for a sustainable management strategy that can handle the issues of oil pipeline vandalism in the oil-producing region using the Nigeria Niger Delta as a case study.