Social Costs, Crude Oil Theft and Social Audit: The Case of Niger Delta Region of Nigeria

Abstract

Crude oil theft in Nigeria has attained dimensions hitherto unimaginable. Monthly losses to government is said to be over one billion Dollars. Attendant social cost of crude oil theft which includes environment pollution, health and living condition of the people of the Niger Delta high. The Nigerian Federal Government has tried a number of options to ensure peaceful environment but not much has been achieved. Social audit which involves partnership between the operators in the Niger Delta region, the federal Government and the Communities in the region has been successful in creating harmonious relationships in places where they are deployed. It is concluded that it will assist in ending or at least significantly reducing the level of crude oil theft and its impact in the Niger Delta region. It is recommended that steps be taken to enforce it the oil producing communities.